2012-Informe-Financiero-CMPC-1T12

Page 1

1Q12

Empresas CMPC S.A. First Quarter 2012 Results th April 27 , 2012

Santa Fe II mill – Nacimiento, Chile This mill concluded the second stage of its expansion project in 4Q11 – 1Q12

1Q12 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 accelerated during the recent years. 92 years after its establishment, CMPC operates in 8 countries, generating over 15,500 direct jobs, contributing with the development of the communities where the Company operates, satisfying the needs of more than 20,000 direct clients 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: Friday, April 27 , 3:00 PM NY’s Time US Toll Free: (+1 800) 688 0796 International Dial: (+1 617) 614 4070 Password: 253 850 09


1Q12

1Q12 in Brief

During the first quarter, CMPC registered an increase in its sales and EBITDA when compared with those reached in the fourth quarter of 2011. The increase in sales is mainly explained by the higher revenues of the Tissue, Pulp and Paper Products divisions which were benefited by higher prices and volumes. Pulp prices decreased by 1% in the case of softwood and increased 7% in the case of hardwood. In addition, it is important to highlight the positive effect in volumes and cash costs derived from the start up of the second stage of the Santa Fe II mill expansion project, which implied a prolonged maintenance downtime related with the final works of this investment during 4Q11. The increase in EBITDA is explained by higher margins in all business divisions, except from Paper.

CMPC’s consolidated sales for 1Q12 reached US$1,177 million, registering a 4% increase when compared to those of 4Q11. During the quarter, sale volumes increased in the Pulp, Paper Products and Tissue businesses. Sale prices were higher in all business divisions, except from Forestry. Consolidated EBITDA reached US$224 million during 1Q12, showing a 25% increase when compared to that of 4Q11. The above responds to the increment registered in margins due to higher sales and lower unitary costs when compared to those of the previous quarter. As a result, CMPC's EBITDA margin for the quarter increased 3 bps up to 19%. CMPC registered a Net Income of US$116 million during 1Q12, showing a 58% increment when compared to that of 4Q11. This is mainly explained by the higher EBITDA registered during the quarter, as well as by a gain in income taxes. This increment was partially offset by a lower net biological assets income. CMPC’s net debt as of the end of 1Q12 stood at US$2,494 million, presenting a US$42 million increase when compared to that as of December 31st, 2011. Total debt stood at US$3,276 million, remaining at the same level than the previous quarter. The Company closed the quarter with US$783 million of Cash (defined as: cash and cash equivalents + term deposits within 90 to 360 days of maturity). During the quarter, the Santa Fe II mill concluded the second stage of its expansion project: in 1Q12 the Santa Fe II mill achieved full production capacity. Moreover, on April 1 st the mill reached 3,619 tons of hardwood production, which is the second highest daily production reached by a single pulp line worldwide.

Key Figures MMUS$

1T11

4T11

1T12

ToT

AoA

Acum. 2011

Acum. 2012

Ac.´12 / Ac.´11

Ventas EBITDA Margen EBITDA Utilidad Neta

1,242 317 26% 143

1,129 180 16% 73

1,177 224 19% 116

4% 25% 3% 58%

-5% -29% -6% -19%

1,242 317 26% 143

1,177 224 19% 116

-5% -29% -6% -19%

166

194

164

-15%

-1%

166

164

-1%

CAPEX

2

Total Activos Deuda Neta Capitalización de Mercado

13,567 13,294 2,158 2,451 10,692 8,152

13,521 2,494 9,528

2% 2% 17%

0% 16% -11%

13,567 2,158 10,692

13,521 2,494 9,528

0% 16% -11%

Dólar Observado Cierre Dólar Observado Promedio

479.46 519.20 481.81 512.43

487.44 489.04

-6% -5%

2% 2%

479.46 481.81

487.44 489.04

2% 2%

Forestry

Pulp

Papers

Tissue

Paper Products


1Q12

Income Statement Analysis

Total revenues reached US$1,177 million during the quarter, 4% higher when compared to those of 4Q11. During the quarter, there were higher sale volumes in all business divisions except from Forestry and Paper, when compared to those of the previous quarter. Regarding the Pulp business, softwood volumes increased 20% due to higher exports worldwide. Hardwood sales remained practically unchanged due to a delay in a shipment with destination to Asia, which offset the increment in volumes in response to the start up of the Santa Fe II mill expansion. The higher volumes of Paper Products respond mainly to the better sales in Chile due to the seasonality of the fruit business and the additional new capacity in Osorno. In the case of Paper, newsprint volumes reduced significantly due to a decrease in production in response to limitations in the energy supply under contract for this mill. In addition, the lower third party sales of corrugated paper is explained by higher intercompany sales. Finally, in terms of prices, they were higher in all business areas, except from Forestry. Softwood average price decreased 1%, whereas hardwood average price increased by 7% when compared to those registered in 4Q11. In the case of Tissue, prices were benefitted by the local currencies appreciation.

Sales Breakdown Analysis to Third Parties

Total Revenues Evolution

= Δ Volumes

= Δ Prices

1,242

1,177

1,129

+18

+2

+20

+8 -2

+8

+1

+19

-22

-3

1,177 1,129

1Q11

4Q11

Sales 4Q11

1Q12

Forestry -5

Pulp +26

Papers -20

Tissue +28

Paper Prod. +20

Sales 1Q12

CMPC’s consolidated EBITDA reached US$224 million, 25% higher than 4Q11’s EBITDA. This increment is mainly explained by the higher EBITDA of the Pulp, Tissue, Forestry and Paper Products divisions. All the above was slightly offset by a decrease in the EBITDA of the Paper business.

EBITDA Evolution

EBITDA Variation by Business

317

+8

+24 180

+8

EBITDA 4Q11

Forestry

+7

+1

224

-3

224 180

1Q11

4Q11

1Q12

Pulp

Papers

Tissue

Paper Holding & Products Others

EBITDA 1Q12

Net Income during the quarter reached US$116 million, 58% higher than that of 4Q11. This increment is mainly explained by the higher EBITDA and other non operational items, as a result of the appreciation of the Chilean peso and its effect over exchange rates differences and differed taxes. This increment was partially offset by a lower net biological assets income.

Net Income Analysis

Net Income Evolution

+43

+44

116 -2

143

3

-9

116 73

-34

-1

Net Biol. Income

Net Fin. Costs

73

1Q11

Forestry

4Q11

Net Income 4Q11

1Q12

Pulp

Papers

EBITDA

Tissue

Depreciation & Stumpage

Other Non Oper.

FX Diff. & Index. Results

Paper Products

Net Income 1Q12

3


1Q12

Income Statement Analysis FORESTAL

Sales to Third Parties Breakdown by Destination Foreign Subsidiaries Sales 30%

A breakdown of CMPC’s sales to third parties by destination during 1Q12 shows that 44% of the sales correspond to exports, 26% to domestic sales in Chile and 30% to domestic sales of foreign subsidiaries. It is important to highlight that foreign subsidiaries sales have been increasing its shares in total sales during the last years. This is mainly explained by the strong internationalization process undertaken by the Company through Latin America.

Export Sales 44% Domestic Sales in Chile 26%

CMPC’s sales breakdown to third parties by business for 1Q12 shows that the Tissue and Pulp businesses contributed with 36% and 28% of total revenues respectively, followed by Paper business contributing with 15% of total sales. Finally, the Forestry and Paper Products divisions represented each 10% of total revenues. CMPC’s EBITDA breakdown by business for 1Q12 shows that all business areas increased their contribution, except from Papers. The latter was mainly explained by lower sale volumes, especially those of newsprint and corrugated paper. Pulp EBITDA was benefited by higher sales, as well as by lower direct costs related to maintenance when compared to 4Q11. The Forestry division increased its contribution to consolidated EBITDA despite the reduction on it sales. This was mainly explained by lower costs, as well as by higher production efficiency. Finally, both Tissue and Paper Products increased its contribution to EBITDA mainly due to higher sales and lower raw materials costs, especially those of fiber when compared to those of the previous quarter.

4Q11 Sales Breakdown by Business Area Paper Products 9%

1Q12 Sales Breakdown by Business Area Paper Products 10%

Forestry 11%

Pulp 28%

Pulp 27%

Tissue 35%

Tissue 36%

Paper 15%

Paper 18%

4Q11 EBITDA Breakdown by Business Area

Tissue 26%

Forestry 10%

1Q12 EBITDA Breakdown by Business Area

Paper Products 4%

Tissue 24%

Paper Products 6% Forestry 17%

Forestry 17% Papers 19%

Papers 25% Pulp 28%

4

Forestry

Pulp

Pulp 33%

Papers

Tissue

Paper Products


1Q12

Income Statement Analysis

The Forestry and wood products business registered a 4% decrease in sales (-US$5 million) during this period when compared to those of 4Q11. Forestry volumes decreased 3%, mainly due to decrements in the sales of sawing logs (9%), pulpwood (5%), sawn wood (6%) and remanufactured wood (1%). On the other hand, plywood increased its sale volumes by 11%, mainly explained by higher exports with destination to Europe and the United States.

FORESTRY

As for the average price, there was a 1% decline in the forestry mix, due to slight decreases in all the categories, except from plywood. Δ% Sales: -4% Δ% Volumes: -3% Δ% Price: -1%

Pulp sales increased by 8% (+US$26 million) during 1Q12 when compared to those of 4Q11. This is mainly explained by the increment in sale volumes for both softwood (20%) and hardwood (0.4%), in response to a restocking process undertaken by the whole paper producers’ business chain. The increase in softwood volumes is mainly attributable to higher exports to Asia (26%), Europe (15%), and Latin America (14%). Hardwood sale volumes remained practically unchanged because of a delay in a shipment with destination to Asia, which offset the increment in volumes due to the start up of the second stage of the Santa Fe II mill expansion. On the other hand, during 1Q12 pulp registered a 2% increment on the effective average price (including a small tonnage of P&W papers produced in integrated pulp mills). Average effective price reached CIF 679 US$/ton for softwood and CIF 602 US$/ton for hardwood. During this period, the spread price between both fibers reached CIF 77 US$/ton, 38% less than the previous quarter.

PULP

Δ% Sales: +8% Δ% Volumes: +6% Δ% Price: +2%

Paper business during 1Q12 registered a 10% decrease (-US$20 million) in consolidated sales, when compared to those of 4Q11, mainly explained by lower sale volumes.

PAPERS

If we analyze each of the paper businesses, newsprint volumes registered a 22% decrement when compared to those of 4Q11. The above responds to a decrease in newsprint production due to limitations in the electric energy supply under contract for this mill, as well as by the high purchase cost of energy in the spot market. Sale price went up 1%. On the other hand, boxboard prices increased 1% when compared with those of 4Q11, whereas sale volumes were down by 1%. Finally, packaging paper sale volumes to third parties decreased by 29% when compared to those of the previous quarter. However, if we consider both sales to third parties and intercompany sales the decrement in volumes is reduced to 7%. Corrugated paper price registered a decrement of 1% when compared to that of 4Q11.

Δ% Sales: -10% Δ% Volumes: -11% Δ% Price: +1% TISSUE

Δ% Total Sales: +7% Δ% Volumes: Paper: +2% / Diapers&FCP: +2% Δ% Price: Paper: +4% / Diapers&FCP: +8%

Paper products business during 1Q12 registered a 19% increment (+US$20 million) in sales compared to those of 4Q11. This increase is mainly attributable to the seasonality of the fruit export business in Chile, which raises demand for fruit boxes during this period, as well as to the start up of the new corrugated box plant in Osorno, Chile. All the above resulted in a 22% increase in corrugated boxes sale volumes. If we compare 1Q12 with 1Q11 sale volumes (to isolate the seasonal effect) we appreciate a 3% reduction, which is mainly attributable to a decrement in the boxes for apples and grapes, which offset the increment in the volumes for the boxes used for avocados, apricots, peaches and citric fruits. On the other hand, molded pulp trays sale volumes registered a 149% increase in response to the apple business seasonality when compared to those of the previous quarter. Finally, paper bags sale volumes decreased by 10%. The average selling price registered a 1% increment.

PAPER PRODUCTS

Δ% Sales: +19% Δ% Volumes: +18% Δ% Price: +1%

Forestry

Tissue business, including operations in Chile, Argentina, Peru, Uruguay, Mexico, Colombia, Ecuador and Brazil, registered a 7% increment in its sales (+US$28 million) during 1Q12, when compared to those of 4Q11. Tissue paper volumes showed a 2% increment mainly due to higher sales in the Mexican, Chilean and Colombian markets. Also, sanitary products increased their volumes in 2%. It is important to highlight that the Brazilian market has leaded the increment in sale volumes of sanitary products, due to the successful entrance of CMPC in this category. Finally, average sale price (measured in US Dollars) increased 8% in the case of diapers & feminine care products; whereas those of tissue paper increased by 4% when compared to those of 4Q11. The increment in prices is mainly explained by the appreciation of the local currencies against the US dollar.

Pulp

Papers

Tissue

Paper Products

5


1Q12

Income Statement Analysis

Operating costs excluding depreciation, stumpage and decrease due to harvest amounted US$799 million, in line with those of 4Q11, registering an increase of US$4 million. At a consolidated level, Operating costs in 1Q12 were 68% of total sales, two points lower than that of 4Q11. Other operating expenses reached US$153 million, in line with those of 4Q11, registering a decrease of US$200 thousand when compared to that of 4Q11. This account represented 13% of total sales, 1% less than that of 4Q11. Financial expenses decreased 2% during 1Q12 when compared with those of 4Q11 reaching US$41 million. On the other hand, CMPC’s Financial Income registered a 16% decrement when compared to that of 4Q11, mainly explained by a lower average amount of cash. During this period there was a lower Share of profit in associated companies, which decreased to US$3.4 million, due to the disvesture in El Raulí during 4Q11. Regarding Currency Exchange differences, the depreciation of the Dollar against the Chilean peso during the quarter had negative result in net income, registering a US$14 million loss. These results are generated by the mismatch between assets and liabilities denominated in Chilean pesos and other currencies other than U.S. dollars (functional currency). Indexation Unit Results is caused by the variation experienced by the balance sheet accounts registered in UF (inflation adjusted index). The US$8 million loss recorded during the quarter was primarily due to the positive variation of the UF, applied to UF nominated debts held by the company. Other gains (losses) includes sales of goods not belonging to any of the company line of business and other items such as insurance deductible in losses, 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$5 million loss was recognized under this account, registering a US$5 million decrement when compared with the previous quarter. Income taxes for the period implied a US$38 million gain, whereas in the previous quarter this account was close to US$0. This is because CMPC’s tax accounting is in Chilean Pesos and the appreciation of this currency reduced the tax base of assets measured in dollars, and therefore decreases differed taxes.

Consolidated Income Statement as of March 31st, 2012

2011 1Q11

Figures in Th. US$

Sales Operating Costs(1)

4Q11

1,241,629 1,128,711 (786,736) (795,258)

Operating Margin

454,893

Other Operating Expenses(2) EBITDA(3) EBITDA Margin (%) Depreciation and Stumpage Variation on Net Value of Biological Assets

6

2012 1Q12 1,176,975 (799,287)

YoY

4% 1%

-5% 2%

13%

-17%

0%

11%

333,453

377,688

(153,565)

(153,331)

317,052 26%

179,888 16%

224,357 19%

25% 20%

-29% -25%

(100,644) 13,053

(104,950) 49,931

(106,535) 16,109

2% -68%

6% 23%

7%

-42%

229,461

124,869

133,931

Non-Operating Income Taxes

(23,516) (63,323)

(51,589) (146)

(56,060) 37,679

Net Income

142,622

73,134

115,550

Pulp

QoQ

(137,841)

Operating Income

Forestry

1Q12

Papers

Tissue

9% 138% -25908% -160% 58%

-19%

Paper Products


1Q12

Balance Sheet Analysis Balance Sheet Analysis st

st

As of March 31 2012, Current assets registered a 2% increment when compared with those as of December 31 , 2011, mainly as a consequence of the increase in the Trade and other receivables account. Also, Non current assets increased in 2% when compared st to those as of December 31 , 2011. st

Current liabilities were up by 4% when compared with those as of December 31 , 2011 mainly because of the 9% increase in the trade payables account. On the other hand, Non current liabilities presented a 1% increment when compared with those as of st December 31 , 2011. st

CMPC’s financial debt stood at US$3,276 million as of March 31 2012, showing a US$3 million increment when compared to that as st st of December 31 , 2011. On the other hand, CMPC’s net financial debt reached US$2,494 million as of March 31 2012. This st represents an increment of US$42 million when compared to that as of December 31 , 2011, mainly explained by the lower amount of cash in hand. It is important to highlight that CMPC closed the quarter with US$783 million of Cash. The Net financial debt/EBITDA ratio registered a negative QoQ variation from 2.3 to 2.5 times. The interest coverage ratio showed an unfavorable movement during the quarter falling from 6.88 times to 6.19 times, when compared to that observed in 4Q11. Finally, the Financial debt / Tangible net worth ratio showed a decrement from 0.43 to 0.42 times. At the end of 1Q12, 71% of CMPC’s debt was denominated in US$, 19% was denominated in Chilean pesos (or Unidades de Fomento) and the balance in other local currencies. On the other hand, 81% 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 , 2012

(i) (ii) (iii) (iv) (v) (vi)

Δ% QoQ Δ% YoY

In Million US$

1Q11

4Q11

1Q12

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

464 3,000 (52) (76) (0) (1)

274 3,137 (51) (74) (4) (9)

208 3,218 (50) (92) (2) (6)

Total Debt ( (i) + (ii) + (iii) + (iv) + (v) + (vi) )

3,333

3,273

3,276

0%

-2%

Cash*

1,176

822

783

-5%

-33%

Net Debt

2,158

2,451

2,494

2%

16%

Average Cost of Debt

4.4%

4.3%

4.3%

0%

0%

-24% 3% -1% 24% -48% -37%

-55% 7% -4% 20% 14160% 320%

*Cash and cash equivalents + Term deposits w ithin 90 to 360 days of maturity

st

Amortization Schedule as of March 31 , 2012

Financial Ratios Evolution

8.95x

6.88x

6.19x

547 371

499

498

496

1.8x

405

0.44x

2.3x 2.5x 0.43x

0.42x

246 1Q11

1Q12

4

48 2012

4Q11

2013

2014

2015

2016

2017

2018

2019

≥2020

Net Financial Debt / EBITDA

Financial Debt / Tangible Net Worth

Interest Coverage Ratio

Shareholders’ Equity presented a US$161 million increase when compared to that of 4Q11. This is mainly due to the higher Retained Earnings registered during the quarter.

Forestry

Pulp

Papers

Tissue

Paper Products

7


1Q12

Relevant Events th

Inversiones CMPC issued a US$500 million international credit note: On April 18 , Inversiones CMPC S.A. acting through its Cayman Island Agency, issued a US$500 million international credit note under the 144A-S regulation of the United States Securities Act. The transaction was under the guaranty of Empresas CMPC. This bullet note has a maturity of 10 years, with semiannual interest payments. The effective rate is 4.64%, which was equivalent to CT10 + 265 bps of spread. Bank of America Merrill Lynch, HSBC, JPMorgan and Mitsubishi UFJ Securities acted as joint book-running managers.

The second stage of the Santa Fe II mill expansion project was concluded: at the end of 2011 - beginning of 2012 the Santa Fe II mill concluded the start up of its expansion project which added 200 thousand tons of hardwood. Thus, annual total capacity at this mill reached 1.13 million tons, for a total investment of US$156 million. It is important to highlight that st this mill produced 3,619 tons on April 1 , which is the second highest production reached in one day by a single pulp line worldwide.

CMPC Pulp and Endesa finished the arbitrage process which determined the outstanding balance due from CMPC th Pulp to Endesa in relation to a specific amount of electrical energy consumption: on April 19 , CMPC Pulp and Endesa decided to end the arbitrage process maintained in order to determine the outstanding balance that CMPC Pulp has to pay Endesa regarding a specific amount of electric energy consumption. In accordance to a previous arbitrage, Endesa was not obligated to provide a specific amount of energy to CMPC at the same conditions that were established in 2003’s Energy Power Supply contract. Under this agreement, CMPC Pulp owes Endesa a sum of US$59.9 million. This amount will be paid as follows: US$25 million in 2012, and the balance by reducing energy consumption and by transferring the attributes of Unconventional Renewable Energy for the years 2012 and 2013. The Company has previously made some provisions regarding this arbitrage on its Financial Statements, so this agreement will not have effects on results.

8

Forestry

Pulp

Papers

Tissue

Paper Products


1Q12

Consolidated Balance Sheet

2011 1Q11

Figures in Th. US$*

Current Assets Cash and Cash Equivalents Operative Receivables Inventories Biological Assets Tax Assets Other Current Assets

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

9,955,125 10,991 166,476 6,279,916 3,178,917 134,733 184,092

TOTAL ASSETS

13,566,609

Current Liabilities Other Financial Liabilities Operative Liabilities Other Current Liabilities

1,382,564 499,635 591,878 291,051

Non Current Liabilities Other Financial Liabilities Deferred Tax Liabilities Other Non Current Liabilities

4,238,561 3,001,426 952,281 284,854

Non Controlling Participations

156,975

Equity Attributable to the Owners of the Controller

7,788,509

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY

13,566,609

2Q11 3,462,621 348,294 1,015,085 997,620 223,112 145,944 732,566 10,204,886 11,591 169,842 6,432,746 3,241,553 148,366 200,788 13,667,507 1,395,645 564,786 611,219 219,640 4,200,773 2,933,387 959,069 308,317 118,315 7,952,774 13,667,507

2012 3Q11 3,276,351 367,590 968,372 1,016,476 216,305 141,273 566,335 9,904,984 10,568 155,811 6,253,094 3,193,798 136,702 155,011 13,181,335 1,314,945 482,552 595,650 236,743 4,062,302 2,799,759 986,763 275,780 5,493 7,798,595 13,181,335

4Q11 3,247,968 404,357 909,967 1,021,914 220,871 137,565 553,294 10,045,608 10,044 154,651 6,310,136 3,261,039 129,034 180,704 13,293,576 1,058,004 293,446 597,514 167,044 4,387,092 3,137,196 962,145 287,751 8,579 7,839,901 13,293,576

1Q12

2Q12

1Q12 3Q12

4Q12

3,307,170 366,687 969,757 1,041,828 223,459 144,152 561,287 10,213,531 10,071 156,580 6,432,107 3,286,224 138,033 190,516

QoQ

YoY

2%

-8%

-9%

19%

7%

-4%

2%

11%

1%

1%

5%

-1%

1%

-43%

2%

3%

0%

-8%

1%

-6%

2%

2%

1%

3%

7%

2%

5%

3%

13,520,701

2%

0%

1,096,994 241,289 653,984 201,721

4%

-21%

-18%

-52%

4,413,793 3,218,130 926,893 268,770

9%

10%

21%

-31%

1%

4%

3%

7%

-4%

-3%

-7%

-6%

9,508

11%

-94%

8,000,406

2%

3%

13,520,701

2%

0%

* 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


1Q12

Consolidated Income Statement

2011 1Q11

Figures in Th. US$

Sales Operating Costs (1)

2Q11

2012 3Q11

1,241,629 1,198,533 1,227,646 (786,736) (743,943) (794,358)

Operating Margin Other Operating Expenses (2) EBITDA(3) EBITDA Margin (%) Depreciation and Stumpage Increase in Biological Assets due to Forests Growth and Price Effects Decrease in Biological Assets due to Harvest

4Q11

1Q12

1,128,711 (795,258)

2Q12

1Q12 3Q12

4Q12

1,176,975 (799,287)

-5% 2%

13%

-17%

0%

11%

454,590

433,288

333,453

377,688

(151,508)

(154,904)

(153,565)

(153,331)

317,052 26%

303,082 25%

278,384 23%

179,888 16%

224,357 19%

25% 3%

-29% -25%

(100,644) 57,481 (44,428)

(104,049) 71,378 (47,352)

(103,772) 70,865 (47,519)

(104,950) 91,559 (41,628)

(106,535) 60,213 (44,104)

2% -34% 6%

6% 5% -1%

7%

-42%

229,461

223,059

197,958

124,869

133,931

(38,107) 7,734 3,546 30,496 (3,526) (23,659) (63,323)

(40,433) 9,952 4,412 20,107 (3,925) (27,099) (16,565)

(42,373) 8,322 (42) (13,958) (5,261) 30,256 (65,693)

(42,005) 10,665 3,628 (5,410) (7,793) (10,674) (146)

(41,310) 8,926 3,435 (13,715) (8,214) (5,182) 37,679

Net Income

142,622

169,508

109,209

73,134

115,550

-2% 8% -16% 15% -5% -3% 154% -145% 5% 133% -51% -78% -25908% -160% 58%

(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

Pulp

4% 1%

454,893

Financial Expenses Financial Income Share Results in Associated Companies Foreign Exchange Difference Indexation Unit Results Other Gains (Losses) Income Taxes

Forestry

YoY

(137,841)

Operating Income

10

QoQ

Papers

Tissue

Paper Products

-19%


1Q12

Consolidated Cash Flow Statement

2011 Figures in Th. US

1Q11

Cash Flow from Operating Activities

231,245 0 0 142,622 63,322 81,932 7,498 (26,970) (41,388) 0 102,764 (83,585) (14,950) 61 (726,323) 0

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

2Q11

2012 3Q11

4Q11

196,217

219,596

165,711

169,508 16,566 83,555 7,868 (16,182) (56,814) (7,958) 94,212 (20,537) (74,001)

109,209 65,693 82,986 4,622 19,219 (98,801) 42 95,412 (31,355) (27,431)

73,134 146 84,930 6,100 13,203 (92,031) (3,628) 98,038 13,297 (27,478)

75,868

511

(182,668)

0 0 255 (144,244) (21,881) 0 5,640 0 7,346 (573,439) 0 449,372 0 0 495,078 128,699 623,777 0 (140,031) (50) (34,385) 61

0 0 246 (180,526) (32,592) (15,025) (5,640) 5,466 8,002 295,936

43,347 0 487 (161,212) (31,383) (4,812) 0 0 8,432 145,651

0 0 101 (151,264) (42,763) 12,195 0 0 5,881 (6,818)

(243,660)

(172,008)

43,475

(493) 71,759 71,266 (37,246) (142,754) (99,385) (34,886) (655)

0 83,501 83,501 (21) (165,558) (55,805) (34,719) 594

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

(45,706) (9,444) 364,529

28,425 10,491 309,379

Cash and Cash Equivalents at the End of the Period Term deposits within 90 to 360 days of maturity

309,379 866,248

348,294 602,121

Cash flows from loss of control of subsidiaries or other businesses 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 Payments arising from futures contracts, forwards, options and swap 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 to Acquire own Shares Payments of Loans Dividends Paid Interest Paid Other Entries (Egresses) of Cash

Cash at the End of the Period

Forestry

1,175,627

Pulp

Papers

950,415

1Q12

2Q12

1Q12 3Q12

4Q12

179,017 0 0 115,550 (37,679) 80,538 6,322 21,929 (54,440) 0 92,617 (22,082) (23,738) 0 (158,539) 0

QoQ

AoA 8%

-23%

58% -25908% -5% 4% 66% -41% -100% -6% -266% -14%

-19% -160% -2% -16% -181% 32% -10% -74% 59%

-13%

-78%

9366% 4% -63% -155% 48% -153%

3649% 10% -28% -100% 18% -101%

0 581,975 581,975 (57) (453,355) (51,241) (33,847) 0

0 0 9,561 (158,039) (15,646) (6,700) 0 0 8,698 3,587 0 (95,598) 0 0 0 105,411 105,411 0 (156,526) (149) (44,334) 0

48,099 (28,802) 348,294

26,519 10,247 367,590

367,590 409,430

404,357 417,464

777,020

821,821

Tissue

-320%

-121%

-82% -82% -100% -65% -100% 31% -

-100% -18% -83% 12% 198% 29% -100%

(75,120) 37,450 404,357

-383% 265% 10%

64% -497% 11%

366,686 416,152

-9% 0%

19% -52%

782,838

-5%

-33%

Paper Products

11


1Q12

Sale Volumes

Domestic Sales(1)

Exports

Total Sales

1Q12

1Q11

4Q11

1Q12

1Q11

4Q11

1Q12

1Q11

4Q11

1Q12

QoQ

YoY

Forestry and Wood Products Sawnwood, Remanufactured Wood & Plywood

(Th. m3ssc)

742 65

760 76

751 87

232 232

214 214

198 198

974 297

974 290

949 285

-3% -2%

-3% -4%

Pulp

(Th. Tons)

29

30

30

504

451

479

533

481

510

6%

-4%

Packaging, Printing & Writing Paper, Newsprint and Boxboard Boxboard Newsprint

(Th. Tons)

85 16 9

87 15 11

74 14 9

141 84 39

128 81 36

118 81 28

226 100 47

215 96 47

191 95 37

-11% -1% -22%

-15% -5% -22%

Tissue Paper

(Th. Tons)

122

128

131

0

0

0

122

129

131

2%

7%

Paper Products Corrugated Boxes

(Th. Tons)

87 65

72 51

87 64

5 3

5 3

4 2

93 68

77 54

91 66

18% 22%

-2% -3%

(1) Co nsiders Chile and Fo reign Subsidiaries (2) The CTM P To ns pro duced by M elho ramento s were reclassified as P ulp

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


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