Empresas CMPC S.A. Second Quarter 2012 Results th August 16 , 2012
2Q12
A new turbo generator based on biomass started operations in April 2012. This project implied US$120 million of investment for 98MW of nominal power output.
2Q12 in Brief
2
Income Statement Analysis
3
Balance Sheet Analysis
7
Relevant Events
8
Balance Sheet
9
Income Statement
10
Cash Flow Statement
11
Sale Volumes
12
In the 90’s, CMPC began an internationalization process, which has accelerated during the recent years. 92 years after its establishment, CMPC operates in 8 countries, generating over 15,500 direct jobs, contributing with the development of the communities where the Company operates, satisfying the needs of more than 20,000 direct clients in 50 countries. All the above confirms CMPC’s long term business vision, which is focused on generating value through its traditional seal of innovation and prudence in all its business activities.
Conference Call th Date: Friday, August 17 , 10:00 AM (Santiago and NY’s Time) US Toll Free: (+1 888) 339 2688 International Dial: (+1 617) 847 3007 Password: 178 217 39
2Q12
2Q12 in Brief
During the second quarter, CMPC registered a decrease in its sales when compared with those reached in the first quarter of 2012. Sales in all business areas remained practically unchanged, except from those of the Paper Products division which were affected by the early ending of the fruit export season in Chile. Regarding pulp efective sale prices, there was a 2% decrease in the case of softwood and an 8% increase in the case of hardwood. As a result, the spread between both fibers decreased from CIF 77 US$/ton in 1Q12 to CIF 14 US$/ton in 2Q12. Despite the decrease in sales, CMPC's EBITDA increased by 8%.This is mainly explained by the advance in the learning curve of the Santa Fe II mill expansion, the lower expenses associated to the development of new projects and the positive effect of the US Dollar appreciation over costs in local currencies. Finally, the start up of a new turbo generator based on biomass had a positive impact in both consolidated sales and EBITDA.
CMPC’s consolidated sales for 2Q12 reached US$1,162 million, registering a 1% decrease when compared to those of 1Q12. During the quarter, sale volumes increased only in the Forestry and Tissue businesses. Sale prices were higher in all business divisions, except from those of Tissue. Consolidated EBITDA reached US$242 million during 2Q12, showing an 8% increase when compared to that of 1Q12. The above responds mainly to the higher margins of the Forestry and Pulp businesses. As a result, CMPC's EBITDA margin for the quarter increased 2 bps to 21%. CMPC registered a Net Income of US$39 million during 2Q12, showing a 69% decrement when compared to that of 1Q12. This is mainly explained by the negative effect that the appreciation of the US Dollar had on deferred taxes. CMPC’s net debt as of the end of 2Q12 stood at US$2,573 million, presenting a US$79 million increase when compared to that as of March 31st, 2012. Total debt stood at US$3,630 million, increasing US$354 million compared with that as of March 31st, 2012 as a consequence of the issuance of a US$500 million credit note in 2Q12. The Company closed the quarter with US$1,058 million of Cash (defined as: cash and cash equivalents + term deposits within 90 to 360 days of maturity). During the quarter, a new turbo generator based on biomass started operations: in April 2012 a US$120 million turbo generator began its operations at the Santa Fe mill site. As a result, CMPC's nominal power output increased by 98MW. For accounting purposes, the financial results of this new turbo generator will be consolidated under the Bioenergías Forestales segment, which is consolidated under the Pulp division. During 2Q12 this subsidiary generated US$15 million of third party sales and US$14 million of EBITDA. In June 2012, CMPC changed the functional currency defined for the Brazilian subsidiaries belonging to the Forest and Pulp operating segments, from Brazilian reais (BRL) to US Dollars (the same currency than CMPC’s Forestry and Pulp businesses).
Key Figures US$ Million
2Q11
1Q12
2Q12
QoQ
YoY
YTD 2011
YTD 2012
YTD '12 / YTD '11
Sales EBITDA EBITDA Margin Net Income
1,199 303 25% 174
1,177 224 19% 124
1,162 242 21% 39
-1% 8% 2% -69%
-3% -20% -4% -78%
2,440 620 25% 323
2,339 466 20% 163
-4% -25% -5% -50%
213
164
154
-6%
-27%
379
318
-16%
Total Assets Net Debt Market Capitalization
13,518 2,362 11,712
13,536 2,493 9,526
13,761 2,573 8,832
2% 3% -7%
2% 9% -25%
13,518 2,362 11,712
13,761 2,573 8,832
2% 9% -25%
Closing Exchange Rate Average Exchange Rate
468.15 469.25
487.44 489.04
501.84 496.64
3% 2%
7% 6%
468.15 475.58
501.84 492.75
7% 4%
CAPEX
2
Forestry
Pulp
Papers
Tissue
Paper Products
2Q12
Income Statement Analysis
Total revenues reached US$1,162 million during the quarter, 1% lower when compared to those of 1Q12. During 2Q12, the main changes in volumes were in the Paper Products, Pulp and Tissue divisions. The lower volumes of the Paper Product division responded to the early ending of the fruit export season in Chile. On the other hand, there were lower sale volumes for both softwood and hardwood. This was mainly explained by the maintenances undertaken in the Pacífico and Guaíba mills, as well as by a delay in a hardwood shipment with destination to China. Tissue paper sale volumes were higher across all Latam markets, except from Peru and Uruguay which remained unchanged when compared to those of 1Q12. It is important to highlight the increase in the sale volumes of sanitary products, which increased 8% regionally when compared to those of 1Q12. Finally, in terms of prices, the 8% increase in hardwood prices more than offset the 2% decrease in softwood prices. It is important to mention the positive effect generated by the start up of a new turbo generator which raised the financial figures of the Pulp division. On the other hand, Tissue prices were affected by local currencies depreciation.
Sales Breakdown Analysis to Third Parties
Total Revenues Evolution 1,199
1,177
1,162
2Q11
1Q12
2Q12
CMPC’s consolidated EBITDA reached US$242 million, 8% higher than 1Q12’s EBITDA. This increment is mainly explained by the higher EBITDA of the Pulp and Forestry divisions. It is important to highlight the US$14 million EBITDA generated by the Energy business during the quarter (consolidated under the Pulp business).
EBITDA Variation by Business
EBITDA Evolution 303
+26
242
224
2Q11
1Q12
EBITDA Forestry 1Q12
2Q12
242
+7
224
Pulp
-8
-0.3
Papers
Tissue
-6
-1
Paper Holding EBITDA Products & Others 2Q12
Net Income during the quarter reached US$39 million, 69% lower than that of 1Q12. This decrement is mainly explained by the negative impact of the depreciation of the Chilean peso and its effect over differed taxes. This was slightly offset by the higher EBITDA generated during the quarter, as well as by the lower FX effects and Indexation units results during 2Q12 when compared to 1Q12.
Net Income Evolution
3
Net Income Analysis +17
170
+4
124
-11
-4
116
+18
39
FX Diff. & Index. Results
Net Income 2Q12
39 -101
2Q11
Forestry
1Q12
Net Income 1Q12
2Q12
Pulp
Papers
EBITDA
Tissue
Depreciation & Stumpage
Net Biol. Income
Net Fin. Costs
Other Non Oper.
Paper Products
3
2Q12
Income Statement Analysis FORESTAL
Sales to Third Parties Breakdown by Destination Foreign Subsidiaries Sales 31%
A breakdown of CMPC’s sales to third parties by destination during 2Q12 shows that 43% of the sales correspond to exports, 26% to domestic sales in Chile and 31% 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 43%
Domestic Sales in Chile 26%
CMPC’s sales breakdown to third parties by business for 2Q12 shows that the Tissue and Pulp businesses contributed with 37% and 28% of total revenues respectively, followed by the Paper business which contributed with 15% of total sales. Finally, the Forestry and Paper Products divisions represented each 11% and 8% of total revenues respectively. CMPC’s EBITDA breakdown by business for 2Q12 shows that all business areas increased their contribution, except from Paper and Paper Products. This was mainly explained by lower sale volumes, for both newsprint and corrugated boxes. Pulp’s EBITDA was benefited by the advance in the learning curve of the second stage of the Santa Fe II mill expansion, as well as by the lower expenses associated to the development of new projects. It is also important to note the positive impact of the consolidation of the energy business in the Pulp division. On the other hand, the Forestry division increased its contribution to consolidated EBITDA in response to higher efficiencies reached in production. In fact, both Nacimiento and Mulchen sawmills registered an hourly production record, improving this business performance.
2Q12 Sales Breakdown by Business Area
1Q12 Sales Breakdown by Business Area
Paper Products 10%
Paper Products 8%
Forestry 10%
Forestry 11%
Pulp 28%
Pulp 28%
Tissue 37%
Tissue 36%
Paper 15%
Paper 15%
1Q12 EBITDA Breakdown by Business Area
Tissue 24%
2Q12 EBITDA Breakdown by Business Area
Paper Products 6%
Paper Products 4%
Tissue 22%
Papers 14%
Forestry 17%
Forestry 19%
Papers 19%
Pulp 33%
4
Forestry
Pulp
Pulp 41%
Papers
Tissue
Paper Products
2Q12
Income Statement Analysis
The Forestry and wood products business registered a 7% increase in sales (+US$8 million) during this period when compared to those of 1Q12. Forestry volumes increased 5%, mainly due to the higher sales of pulpwood (19%), sawing logs (11%) and sawn wood (11%). On the other hand, remanufactured wood decreased its sale volumes by 8%, whereas plywood registered an 11% decrement in volumes sold worldwide. This was mainly explained by the lower production of the plywood mill in response to the maintenance undertaken at the Pacífico pulp mill in June (Pacífico supplies steam for plywood production).
FORESTRY
As for the average price, there was a 2% increase in the forestry mix, due to slight increases in all the categories.
Δ% Sales: +7% Δ% Volumes: +5% Δ% Price: +2%
Pulp sales remained practically unchanged (+US$0.6 million) during 2Q12 when compared to those of 1Q12. In terms of volumes, softwood sales decreased by 12% mainly explained by the maintenance undertaken at the Pacífico mill, as well as by lower exports worldwide. Exports to Asia remained slightly lower, whereas exports to Europe declined by 12% due to a weaker demand, as well as by the intensive supply competitiveness scenario shown in this market when compared to other periods. Hardwood sale volumes decreased 6%, which was mainly attributable to the maintenance undertaken at the Guaíba mill, as well as by a delay in a shipment with destination to China. On the other hand, during 2Q12 the Pulp division registered an 8% increment on the effective average price (including a small tonnage of P&W papers and energy sold to the SIC grid). Average effective price reached CIF 662 US$/ton for softwood and CIF 649 US$/ton for hardwood, reducing in US$63 the spread between both fibers when compared to 1Q12.
PULP
Δ% Sales: +0% Δ% Volumes: -7% Δ% Price: +8%
Paper business during 2Q12 registered a 1% decrease (-US$2 million) in consolidated sales, when compared to those of 1Q12, mainly explained by lower sale volumes.
PAPERS
If we analyze each of the paper businesses, newsprint volumes registered an 18% decrement when compared to those of 1Q12. 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 down 1%. On the other hand, boxboard volumes and prices remained unchanged when compared with those of 1Q12. Finally, packaging paper sale volumes to third parties increased by 2% when compared to those of the previous quarter. Corrugated paper price registered a decrement of 7% when compared to that of 1Q12.
Δ% Sales: -1% Δ% Volumes: -1% Δ% Price: +0.2% TISSUE
Δ% Total Sales: +2% Δ% Volumes: Paper: +5% / Diapers&FCP: +8% Δ% Price: Paper: -3% / Diapers&FCP: -3%
Paper products business during 2Q12 registered a 26% decrement (-US$31 million) in sales compared to those of 1Q12. This decrease is mainly attributable to the early ending of the fruit export business in Chile, which dropped 35% demand for corrugated boxes when compared to 1Q12. If we compare 2Q12 with 2Q11 sale volumes (to isolate the seasonal effect) we appreciate a 14% 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. In addition, demand for salmon boxes has also showed a decrease due to lower salmon sale volumes. On the other hand, molded pulp trays sale volumes registered a 16% decrease in response to the lower apple volumes when compared to those of the previous quarter. Finally, paper bags sale volumes increased by 3%, with the Mexican market leading the growth. Finally, average selling price registered a 1% increment.
PAPER PRODUCTS
Δ% Sales: -26% Δ% Volumes: -27% Δ% Price: +1%
Forestry
Tissue business, including operations in Chile, Argentina, Peru, Uruguay, Mexico, Colombia, Ecuador and Brazil, registered a 2% increment in its sales (+US$9 million) during 2Q12, when compared to those of 1Q12. Tissue paper volumes showed a 5% increment mainly due to higher sales in the Mexican, Chilean, Colombian and Argentinean markets, in response to developments of new product categories, a higher coverage and commercial campaigns. Also, sanitary products increased their volumes in 8%. 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 market category. Finally, average sale price (measured in US Dollars) decreased 3% for both tissue paper and sanitary products when compared to those of 1Q12. The decrement in prices is mainly explained by the depreciation of the local currencies against the US dollar.
Pulp
Papers
Tissue
Paper Products
5
2Q12
Income Statement Analysis
Operating costs excluding depreciation, stumpage and decrease due to harvest amounted US$751 million, 6% lower than those of 1Q12, registering a decrease of US$48 million. This was mainly in response to the advance in the learning curve of the Santa Fe II mill expansion, the lower expenses associated to the development of new projects and the positive effect of the US Dollar appreciation over costs in local currencies. At a consolidated level, Operating costs in 2Q12 were 65% of total sales, three points lower than that of 1Q12. Other operating expenses reached US$169 million, 10% higher when compared with those of 1Q12, registering an increase of US$16 million when compared to that of 1Q12. This was mainly explained by the higher Distribution costs registered during the quarter. This account represented 15% of total sales, 2 points above than that of 1Q12. Financial expenses increased 11% during 2Q12 when compared with those of 1Q12 reaching US$46 million. This was mainly explained by the costs associated to the US$500 million credit note issued in April. On the other hand, CMPC’s Financial Income remained flat when compared to that of 1Q12. During this period there was a lower Share of profit in associated companies, which decreased to US$2.2 million, due to the divesture in El Raulí during 4Q11. Regarding Currency Exchange differences, the appreciation of the Dollar against the Chilean peso during the quarter resulted in a US$1 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$3 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 non core business sales 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$13 million loss was recognized under this account, registering a US$7 million decrement when compared with the previous quarter. Income taxes for the period implied a US$55 million expense, whereas in the previous quarter this account was close to US$49 million. This is because CMPC’s tax accounting is in Chilean Pesos and the depreciation of this currency increased the tax base of assets measured in dollars, and therefore increment differed taxes.
th
Consolidated Income Statement as of June 30 , 2012 2011 2Q11
Figures in Th. US$
6
2012
1Q12 2Q12
1Q12
QoQ
YoY
Sales Operating Costs(1)
1,199 (744)
1,177 (799)
1,162 (751)
-1% -6%
-3% 1%
Operating Margin Other Operating Expenses(2)
-455 (152)
-378 (153)
411 0 (169)
9% 0% 10%
-10% 0% 11%
EBITDA(3) EBITDA Margin (%)
303 25%
224 19%
242 21%
8% 9%
-20% -18%
Depreciation and Stumpage Variation on Net Value of Biological Assets
(104) 7
(106) 14
(102) 5
-4% -61%
-1% -25%
Operating Income
207
132
145
10%
-30%
Non-Operating Income Taxes
(41) 8
(57) 49
(52) (55)
Net Income
174
124
39
-10% -211% 0% -69%
27% -746% 0% -78%
Forestry
Pulp
Papers
Tissue
Paper Products
2Q12
Balance Sheet Analysis th
st
As of June 30 2012, Current assets registered a 7% increment when compared with those as of March 31 2012, mainly as a consequence of the increase in the level of Cash due to the issuance of a US$500 million credit note in April 2012. Also, Non current st assets remained unchanged when compared to those as of March 31 , 2012. st
Current liabilities were up by 6% when compared with those as of March 31 , 2012 mainly because of the increase in the short term st debt. On the other hand, Non current liabilities presented a 4% increment when compared with those as of March 31 , 2012. th
CMPC’s financial debt stood at US$3,630 million as of June 30 , 2012, showing a US$354 million increment when compared to that st as of March 31 , 2012 in response to the US$500 million credit note issuance. On the other hand, CMPC’s net financial debt reached th st US$2,573 million as of June 30 , 2012. This represents an increment of US$79 million when compared to that as of March 31 , 2012. It is important to highlight that CMPC closed the quarter with US$1,058 million of Cash. The Net financial debt/EBITDA ratio registered a negative QoQ variation from 2.5 to 2.8 times. The interest coverage ratio showed an unfavorable movement during the quarter falling from 6.19 times to 5.62 times, when compared to that observed in 1Q12. Finally, the Financial debt / Tangible net worth ratio showed an increment from 0.42 to 0.46 times. At the end of 2Q12, 79% of CMPC’s debt was denominated in US$, 16% was denominated in Chilean pesos (or Unidades de Fomento) and the balance in other local currencies. On the other hand, 83% of CMPC’s total financial debt has a fixed interest rate, whereas the balance has a floating interest rate. th
Debt Breakdown as of June 30 , 2012
(i) (ii) (iii) (iv) (v) (vi)
Δ% QoQ Δ% YoY
In Million US$
2Q11
1Q12
2Q12
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
521 2,931 (52) (90) 1.88 1.14
208 3,218 (50) (92) (2) (6)
379 0 3,388 0 (50) (74) (5) (9)
82% 5% -1% -20% 111% 44%
-27% 16% -4% -18% -352% -849%
Total Debt ( (i) + (ii) + (iii) + (iv) + (v) + (vi) )
3,313
3,276
3,630 0
11%
10%
Cash*
950
783
1,058 0
35%
11%
Net Debt
2,362
2,493
2,573 0
3%
9%
Average Cost of Debt
4.4%
4.3%
4.4% #
0.1%
0.0%
*Cash and cash equivalents + Term deposits w ithin 90 to 360 days of maturity
Financial Ratios Evolution
th
Amortization Schedule as of June 30 , 2012
8.68x 6.19x 5.62x 2.5x
1.9x
975 559
331
413
254
67 2012
2013
2014
2015
2016
500
498
2018
2019
2.8x
0.43x
0.42x
2Q11
0.46x
1Q12
2Q12
9 2017
≥2020
Net Financial Debt / EBITDA
Financial Debt / Tangible Net Worth
Interest Coverage Ratio
Shareholders’ Equity presented a US$26 million decrease when compared to that of 1Q12. This is mainly due to the lower Retained Earnings and Other Reserves registered during the quarter.
Forestry
Pulp
Papers
Tissue
Paper Products
7
2Q12
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. This has been the lowest effective rate for a 10 year Chilean non sovereign issuance in the US. Bank of America Merrill Lynch, HSBC, JPMorgan and Mitsubishi UFJ Securities acted as joint book-running managers.
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 did not have effects on 2Q12’s results.
Empresas CMPC is the fifth most admired company in Chile, according to the survey published by "La Segunda" th newspaper: On July 19 was published a traditional local survey called: “The most respected Companies of the year”. This study showed very positive results for CMPC, in financial, environmental, social responsibility and labor climate tasks, among others. At the general ranking, Empresas CMPC obtained the fifth place in “Most respected company”. CMPC also obtained the first place in “Seriousness and solvency” and the first place also in “Honesty and transparency". CMPC obtained the second place in “new contributions in education, training and social assistance”.
A CLP$12 cash dividend was paid in May and an CLP$8 dividend was announced in August: CMPC’s board approved th in April a CLP$12 dividend to be paid on each outstanding share in May 10 . In addition, a CLP$8 dividend was announced in th th August 9 . This dividend will be distributed on September 13 , 2012.
During April 2012, a new turbo generator based on biomass started operations: On April a new turbo generator operated by Bioenergías Forestales and located in the same site of the Santa Fe mill started operating. This equipment, which implied a total investment of US$120 million, has a nominal energy production capacity of 98 MW per year.
8
Forestry
Pulp
Papers
Tissue
Paper Products
2Q12
Consolidated Balance Sheet
2011 4Q11
Figures in Th. US$*
Current Assets Cash and Cash Equivalents Operative Receivables Inventories Biological Assets Tax Assets Other Current Assets
2012 1Q12
2Q12
2Q12 3Q12
4Q12
QoQ
3,249,569 404,357 909,967 1,023,515 220,871 137,565 553,294
3,312,451 366,687 969,757 1,042,859 223,459 148,402 561,287
3,535,234 542,303 936,319 1,063,490 218,363 127,275 647,484
# 7% # 48% # -3% # 2% # -2% # -14% # 15%
Non Current Assets Intangible Assets, Different from Goodwill Goodwill Property, Plant and Equipment, Net Biological Assets Deferred Tax Assets Other Non Current Assets
10,098,864 10,044 155,181 6,362,862 3,261,039 129,034 180,704
10,223,760 10,071 156,878 6,464,886 3,267,626 133,783 190,516
10,225,874 9,586 149,942 6,436,472 3,288,415 156,418 185,041
# 0% # -5% # -4% # 0% # 1% # 17% # -3%
TOTAL ASSETS
13,348,433
13,536,211
13,761,108
#
Current Liabilities Other Financial Liabilities Operative Liabilities Other Current Liabilities
1,058,004 293,446 597,514 167,044
1,096,994 241,289 653,984 201,721
1,159,974 416,413 588,564 154,997
# 6% # 73% # -10% # -23%
Non Current Liabilities Other Financial Liabilities Deferred Tax Liabilities Other Non Current Liabilities
4,393,517 3,137,196 968,570 287,751
4,418,533 3,218,130 931,633 268,770
4,611,063 3,387,947 972,220 250,896
# # # #
8,579
9,508
4,713
7,888,333
8,011,176
7,985,358
#
0%
13,348,433
13,536,211
13,761,108
#
2%
Non Controlling Participations Equity Attributable to the Owners of the Controller TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
2%
4% 5% 4% -7%
# -50%
* 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
2Q12
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, Amortizations and Stumpage Increase in Biological Assets due to Forests Growth and Price Effects Decrease in Biological Assets due to Harvest
4Q11 1,128,711 (795,258)
1Q12 1,176,975 (799,287)
2Q12 1,162,050 (751,445)
2Q12 3Q12
4Q12
QoQ
YoY
-1% -6%
-3% 1%
454,893
454,590
433,288
333,453
377,688
410,605
9%
-10%
(137,841)
(151,508)
(154,904)
(153,565)
(153,331)
(168,903)
10%
11%
317,052 26%
303,082 25%
278,384 23%
179,888 16%
224,357 19%
241,702 21%
8% 9%
-20% -18%
(100,745) 54,620 (44,428)
(103,696) 54,620 (47,352)
(103,635) 54,619 (47,519)
(103,155) 56,032 (41,628)
(106,085) 58,222 (44,104)
(102,156) 58,221 (52,743)
-4% 0% 20%
-1% 7% 11%
Operating Income
226,499
206,654
181,849
91,137
Financial Expenses Financial Income Share Results in Associated Companies Foreign Exchange Difference Indexation Unit Results Other Gains (Losses) Income Taxes
(38,107) 7,734 3,546 28,743 (3,526) (23,659) (52,736)
(40,433) 9,952 4,412 16,422 (3,925) (27,099) 8,490
(42,373) 8,322 (42) 2,593 (5,261) 30,256 (136,723)
(42,005) 10,665 3,628 (3,172) (7,793) (10,674) 2,490
Net Income
148,494
174,473
38,621
44,276
132,390
145,024
10%
-30%
(41,310) 8,926 3,435 (14,971) (8,214) (5,182) 49,280
(45,809) 8,940 2,160 (1,345) (2,937) (12,592) (54,832)
11% 0% -37% -91% -64% 143% -211%
13% -10% -51% -108% -25% -54% -746%
38,609
-69%
-78%
124,354
(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
2Q12
Consolidated Cash Flow Statement
2011 1Q11
Figures in Th. US
2Q11
2012 3Q11
4Q11
1Q12
2Q12
2Q12 3Q12
4Q12
QoQ
AoA
Cash Flow from Operating Activities
231,245
196,217
219,596
165,711
179,017
159,181
-11%
-19%
Net Income Income Taxes Adjustments Financial Costs 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)
142,622 63,323 38,107 82,142 7,498 (26,970) (41,388) 0 64,446 (83,585) (14,950)
169,508 16,565 (38,107) 83,345 7,868 (16,182) (56,814) (7,958) 132,530 (20,537) (74,001)
109,209 65,693 0 82,986 4,622 19,219 (98,801) 42 95,412 (31,355) (27,431)
73,134 146 0 84,930 6,100 13,203 (92,031) (3,628) 98,038 13,297 (27,478)
115,550 (37,679) 41,310 80,538 6,322 21,929 (54,440) 0 51,307 (22,082) (23,738)
47,413 43,231 45,809 81,922 199 5,538 (43,222) (5,595) 65,927 (53,159) (28,883)
-59% -215% 0% 2% -97% -75% -21% 28% 141% 22%
-72% 161% 0% -2% -97% -134% -24% -30% -50% 159% -61%
Cash Flow from Investment Activities
(726,323)
75,868
511
(182,668)
(158,539)
(227,258)
43%
-400%
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 Divestments in Intagible Assets 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
0 0 246 (180,526) 0 (32,592) (15,025) (5,640) 5,466 8,002 295,936 0 0 (243,598)
43,347 0 487 (161,212) 0 (31,383) (4,812) 0 0 8,432 145,651 0 0 (172,008)
0 0 101 (151,264) 0 (42,763) 12,195 0 0 5,881 (6,818) 0 0 43,475
0 0 9,561 (158,039) 0 (15,646) (6,700) 0 0 8,698 3,587 0 0 (95,598)
0 (792) 101 (136,396) 5,480 (22,727) 2,830 0 3,379 8,804 (87,937) 0 0 270,940
-99% -14% 0% 45% -142% 1% -2552%
-59% -24% 0% -30% -119% -100% -38% 10% -130%
Cash Flow from Financing Activities
0 0 255 (144,244) 0 (21,881) 0 5,640 0 7,346 (573,439) 0 0 449,372
-383%
-211%
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
495,078 128,699 623,777 0 (140,031) (50) (34,386) 62
(493) 71,759 71,266 (37,246) (142,754) (99,385) (34,885) (594)
0 83,501 83,501 (21) (165,558) (55,805) (34,719) 594
0 581,975 581,975 (57) (453,355) (51,241) (33,847) 0
0 105,411 105,411 0 (156,526) (149) (44,334) 0
521,457 47,704 569,161 0 (210,295) (53,902) (34,024) 0
- -105872% -55% -34% 440% 699% -100% 34% 47% 36076% -46% -23% -2% -100%
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
28,487 10,491 309,379
48,099 (28,802) 348,294
26,519 10,247 367,590
(75,120) 37,450 404,357
202,863 (27,246) 366,686
-370% -173% -9%
612% -360% 19%
Cash and Cash Equivalents at the End of the Period Term deposits within 90 to 360 days of maturity
309,379 866,248
348,356 602,121
367,590 409,430
404,357 417,464
366,686 416,152
542,303 515,307
48% 24%
56% -14%
1,057,610
35%
11%
Cash at the End of the Period
Forestry
1,175,627
Pulp
Papers
950,477
777,020
Tissue
821,821
782,838
Paper Products
11
2Q12
Sale Volumes
Domestic Sales(1)
3
Exports
Total Sales
2Q12
2Q11
1Q12
2Q12
2Q11
1Q12
2Q12
2Q11
1Q12
2Q12
QoQ
YoY
5% 3% 0% -7% 0%
16% 3% 0%
Forestry and Wood Products Sawnwood, Remanufactured Wood & Plywood
(Th. m ssc)
645 66 0
751 87 0
781 77 0
217 217 0
198 198 0
215 215 0
862 283 0
949 285 0
996 292 0
Pulp
(Th. Tons)
Packaging, Printing & Writing Paper, Newsprint and Boxboard Boxboard Newsprint
(Th. Tons)
30 0 83 16 10 0
30 0 74 14 9 0
35 0 80 14 9 0
450 0 119 79 32 0
479 0 118 81 28 0
437 0 110 81 22 0
480 0 202 95 41 0
510 0 191 95 37 0
472 0 189 95 30 0
-1% 0% -18% 0%
-2% 0% -7% 0% -27% 0%
Tissue Paper
(Th. Tons)
Paper Products Corrugated Boxes
(Th. Tons)
125 0 70 47
131 0 87 64
137 0 63 42
0 0 5 3
0 0 4 2
0 0 3 1
125 0 76 50
131 0 91 66
138 0 67 43
5% 0% -27% -35%
10% 0% -11% -14%
(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