EMPRESAS CMPC FOURTH QUARTER 2013 RESULTS
On December 5th, CMPC announced the reorganization of the Company’s paper and packaging business.es CMPC Papers is now the business area that combines the former Paper and Paper Products divisions.
FOURTH QUARTER 2013 RESULTS Topics
Management Comment
4Q13 Highlights
3
Sales and EBITDA Analysis
4-5
Sales Analysis:
6 - 10
Forestry
5
Pulp
7-8
Paper
9
Tissue
10
Income Statement Analysis
11
Balance Sheet Analysis
12
Debt Analysis
13
Capital Expenditures
14
Relevant Events
15 - 16
Capital Markets
17
Financial Information
18 - 20
Conference Call Date: March 6th, 2014 @ 3:00 PM ET US Toll Free: 1-877-317-6789 International Dial: 1-412-317-6789 Webcast: http://services.choruscall.com/lin ks/empresas140306.html
2013 was a year of solid achievement for CMPC, as we delivered solid results across our businesses, maintaining margins while investing in future growth. We delivered respectable financial results, with solid growth in both revenue and EBITDA, including a 3% growth in tissue EBITDA despite the impact of depreciating local currencies in the second half of the year. We also broke ground at our Guaíba pulp project in Brazil, while executing on our conservative financing plan to keep our leverage under control during this investment phase. CMPC also received multiple industry recognitions for the year, including Forest Stewardship Council certification for CMPC Maderas; the recognition of our Confort tissue brand as the second-most-valued brand in Chile; and Fundación CMPC receiving the “Más por Chile” seal from the Ministry of Social Development. In 2014, we will prioritize efficiency and discipline across our business. The opening of our new tissue distribution plant will be a boost to the Brazilian tissue business. The facilities inaugurated in 2013 at Talagante and Mininco will continue to move along their respective learning curves, while our restructured Paper business enters the year with a leaner cost base. To sum up, we are positioned to deliver further profitable growth, while also maintaining strict control over our leverage levels, to create value for all our stakeholders. About CMPC Empresas CMPC produces forestry, pulp, paper, tissue and packaging products throughout Latin America. The company aims to deliver worldclass products, from forestry to finished products, to its global customer base. Its high quality timber and production facilities are strategically located in countries including Chile, Brazil, Argentina, Mexico, Peru, Colombia, Uruguay and Ecuador, hiring more than 16 thousand direct employees, making CMPC a truly regional company with a competitive cost structure. The Company sells more than 25 different product lines to over 31,000 clients in more than 45 countries, always seeking long-term relationships.
Investor Relations Contact: Colomba Henríquez B. chenriquezb@gerencia.cmpc.cl 56-2-2441-2791
Press: Sebastián Garcés O. sgarceso@gerencia.cmpc.cl 56-2-2441-2279
2
4Q13 HIGHLIGHTS Total sales were US$1,259 million, 2% and 4% higher than 3Q13 and 4Q12 respectively.
Pulp sales of 576,000 tons, up 7% QoQ and 6% YoY. EBITDA of US$254 million, down 2% when compared to 3Q13 and up 21% compared to 4Q12. EBITDA margin of 20%, compared with 21% in 3Q13 and 17% in 4Q12. Net Debt/EBITDA ratio of 2.8x, down from 3.0x in 3Q13 and 3.3x in 4Q12. New tissue distribution center in Caieiras, Brazil begins operations in October 2013. CMPC’s Board of Directors approved a new 50,000 tons/ year capacity tissue machine for the Altamira Mill in Mexico. Secured total of US$340 million of credit facilities from Swedish and Finnish export credit agencies to finance expansion of Guaíba pulp project .
Main Figures US $ Million
4Q 12
3Q 13
4Q 13
Q oQ
Y oY
Y TD 2012
Y TD 2013
Y TD ' 13 / Y TD ' 12
Sales EBITDA EBITDA Margin Net Income
1,213 209 17% 40
1,231 258 21% 43
1,259 254 20% 37
2% -2% -4% -13%
4% 21% 17% -7%
4,759 914 19% 202
4,974 964 19% 196
5% 5% 0% -3%
479
228
265
16%
-45%
918
862
-6%
Total Assets Net Debt Market Capitalization
13,879 3,009 9,236
14,152 2,793 7,223
14,188 2,707 5,822
0% -3% -19%
2% -10% -37%
13,879 3,009 9,236
14,188 2,707 5,822
2% -10% -37%
Closing Exchange Rate (CLP/US$) Average Exchange Rate (CLP/US$)
479.96 477.72
504.20 507.47
524.61 516.00
4% 2%
9% 8%
479.96 486.59
524.61 495.00
9% 2%
CAPEX
Forward-Looking Statements This earnings release may contain forward-looking statements. Such statements are subject to risks and uncertainties that could cause CMPC’s actual results to differ materially from those set forth in the forward-looking statements. These risks include: market, financial and operational risks. All of them are described in CMPC’s Financial Statements, Note 3 (“Gestión de Riesgos”). In compliance with the applicable rules, Empresas CMPC S.A. 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 on its website (www.svs.cl).
3
SALES AND EBITDA ANALYSIS Third Party Sales by business area
4Q12
4Q13
3Q13
10%
11%
11%
37%
37%
38% 30%
30%
32%
20%
21%
23%
Forestry
Pulp
Paper
Tissue
Third Party Sales by destination
4Q12 26%
30%
4Q13
3Q13 24%
32%
23%
31%
46%
44%
44%
Domestic Sales Foreign Subsidiaries
Domestic Sales Chile
Export Sales
EBITDA by business area
4Q12 17%
3Q13
15%
22%
24%
4Q13
15%
19%
17%
14% 44%
52%
49%
Forestry
Pulp
12%
Paper
Tissue
4
SALES AND EBITDA ANALYSIS Total Revenues were US$1,259 million during the quarter, 2% higher compared to 3Q13 and 4% higher compared to 4Q12. The QoQ increase was mainly due to the Pulp division which benefited from higher prices for softwood and higher sales volumes for hardwood. The Forestry division also registered higher sales volumes and slightly higher prices, while the Paper division was benefited by a 5% increase in average prices. The YoY increase was driven by an increase in sales in all business areas with the exception of the Paper division, which was affected by the closure of the newsprint operations and a late start of the fruit season in Chile. Operating costs, excluding depreciation, stumpage and decrease due to harvest, totaled US$826 million, up 4% from 3Q13 and 1% from 4Q12. The QoQ increase is partly the result of higher sales in most business areas and higher seasonal costs in the Forestry division. At a consolidated level, operating costs in 4Q13 were 66% of total revenues, compared with 65% in 3Q13 and 67% in 4Q12. EBITDA totaled US$254 million, down 2% from 3Q13 and up 21% from 4Q12. The QoQ decrease is the result of seasonally higher costs in the Forestry divisions, as well as seasonally lower tissue sales. The YoY increase is mainly due to the Pulp and Tissue divisions where EBITDA rose 43% and 35% respectively.
EBITDA Variation by Business
Revenues Analysis to Third Parties ∆ Prices
+ 20 +26 +1
+4 -17
+5
∆ Volumes
-2
+9
-9
-1
+2 -10
-4
254
258 1,231
Sales 3Q13
1,259
Forestry +6
Pulp +22
Papers + 4
Tissue -3
Sales 4Q13
EBITDA 3Q13
Forestry
Pulp
Papers
Tissue
Holding & Others
EBITDA 4Q13
5
FORESTRY In 4Q13, Forestry revenues rose 4% from 3Q13 and 17% from 4Q12.
Sales* 123
4Q12
138
144
3Q13
4Q13
QoQ sales volumes increased 3%, driven by the higher sales of sawn wood (+15%), pulpwood (+12%) and plywood (+5%). Higher sawn wood sales are the result of seasonally higher sales in Chile and higher exports to the Middle East. Pulpwood volumes benefited from higher wood chips sales in Chile, while plywood sales rose on higher exports to Latin America. Sales volumes of remanufactured wood and sawing logs fell 8% and 7% respectively. The lower volumes of remanufactured wood were due to a downward adjustment in demand in United States which had seen growing demand following hurricane Sandy. The decrease in sawing logs volumes is mainly the result of greater internal use of logs. 4Q13’s volumes were 20% higher when compared to 4Q12 due to the higher volumes sold of pulpwood (+49%), sawing logs (+26%), sawn wood (+15%) and remanufactured wood (+11%).
EBITDA* 42 32
32
4Q12
3Q13
Average sale prices increased 2% compared to 3Q13, driven by higher pulp wood prices due to higher sales of wood chips and decreased in 1% when compared to 4Q12.
4Q13
* Figures in US$ million
Volumes (Th. m 3 )
4 Q1 2
3 Q1 3
4 Q1 3
Pulpwood
167
224
249
Sawing Logs
285
386
359
Sawn wood
200
199
230
41
49
45
Remanufactured wood Plywood
55
52
54
Others
115
92
98
Total
862
1 ,0 0 1
1 ,0 3 5
EBITDA for the quarter fell 22% from 3Q13, and was stable compared to 4Q12. The lower QoQ EBITDA can be attributed to higher seasonal expenses, including fire control, weed control and road pavements, and one-off costs associated with the startup of the new plywood line.
6
PULP Global demand for Market Pulp rose 2.6% in 4Q13 from 3Q13. For 2013, demand grew 3.2%, or 1.7 million tons. Of this additional 1.7 million tons, 1.3 million tons was sold in China. Softwood demand increased 2.2%, or 560,000 tons, in 2013 compared with 2012. Geographically, North America and Europe accounted for 370,000 tons of this increase. The growth in demand was broadly in line with the increase in installed capacity. The reasonable demand/supply balance allowed softwood prices to maintain a stable/upward trend, accumulating a 10% annual increase according to FOEX prices. Hardwood demand increased 5.4%, or 1.5 million tons, during 2013. The highest growth in demand for hardwood pulp was China, with an annual increase of 19%, or 1.3 million tons. Even though global supply grew 615,000 tons during the year, which is lower than demand growth, prices had a downward trend during the last part of 2013. The latter effect is mainly explained by the higher level of producer’s inventories at the end of 2012 (35 days), a more aggressive commercial policy from the producers, and the expectations of the entrance of new capacity in South America. However, new production lines were delayed and signs of a recovery of the European demand are perceived. Also, we have seen un upward trend in the usage of hardwood in the mix of paper fibers. All this contributes to a more positive outlook for pulp in the first part of 2014. Source: PPPC
850
829 772
800 U S$/ton CIF
CMPC's average net pulp export price evolution
877
900
750 700
741
688
745
713 679
662
619
688
650
649
600 602
550
634
623
624
3Q12
4Q12
653
681
668
680 648
643
633
3Q13
4Q13
563
500 1Q11
2Q11
3Q11
4Q11
1Q12
2Q12 BSKP
1Q13
2Q13
BEKP
7
PULP During 4Q13, Pulp sales rose 6% from 3Q13 and 9% from 4Q12.
Sales* 396
362
374
4Q12
3Q13
4Q13
EBITDA* 130
134
3Q13
4Q13
94
4Q12 * Figures in US$ million
Volumes (t h. To ns)
Effective average sales prices (including a small tonnage of P&W papers and energy sold to the SIC grid) increased 1% QoQ and 6% YoY. The average effective net export price was CIF 713 US$/ton for softwood and CIF 633 US$/ton for hardwood. During 4Q13, the spread between the two fibers was CIF 80 US$/ton, compared with CIF 25 US$/ton in 3Q13.
EBITDA in 4Q13 rose 3% from 3Q13 and 43% from 4Q12. Direct costs fell due to lower costs for pulpwood and chemicals, partly offset by higher energy costs in the Santa Fe mill.
4 Q1 2 3 Q1 3 4 Q1 3
BSKP
165
171
171
BEKP
365
356
392
Other
12
12
13
542
538
576
Total Market Pulp
Market pulp sales volumes rose 7% from 3Q13 and 6% from 4Q12. Sales volumes of softwood were flat QoQ and rose 4% YoY, while hardwood sales rose 10% QoQ and 7% YoY. The quarterly increase in hardwood volumes is the result of greater demand in Europe, the United States and Latin America. The increase in exports to Europe and United Stated is partly explained by additional shipments to test new markets for pulp from GuaĂba 2. The increase YoY is mainly due to better operational rates with higher exports to most markets.
8
PAPERS In 4Q13, Paper sales rose 2% from 3Q13 and fell 9% from 4Q12.
Sales* 280
256
252
4Q12
3Q13
QoQ sales volumes were flat. Sales of boxboard rose on higher exports, while corrugated box sales were higher on increase demand due to the start of the fruit season in Chile. This was offset by lower paper bag volumes, as a result of a decrease in exports from the Argentina operations, and lower sales of molded pulp trays as demand from the apple industry fall. 4Q13 volumes fell 9% from 4Q12, as a result of the closure of our newsprint operations and a late start of the fruit season in Chile. The decline was partly offset by a 14% increase in paper bag volumes and a 12% increase of molded pulp trays as capacity rose in Mexico and Chile, respectively.
4Q13
EBITDA * 50
45 36
Sale prices rose 5% from 3Q12 and 4% from 4Q12, mainly explained by higher paper bag prices. EBITDA in 4Q13 rose 24% from 3Q13, and fell 10% from 4Q12.
4Q12
3Q13
4Q13
* Figures in US$ million
Volumes ( th. Tons)
4 Q1 2 3 Q1 3 4 Q1 3
Boxboard
92
98
100
Newsprint
28
15
10
Paper Bags Other Papers
19 37
22 38
22 37
C MPC Packaging
93
72
76
Corrugated Paper
40
31
30
Corrugated Boxes
51
36
42
Molded Pulp Trays
3
4
3
270
245
244
Total
9
TISSUE In 4Q13, Tissue sales fell 1% from 3Q13 and rose 4% from 4Q12.
Sales* 467
446
4Q12
3Q13
464
4Q13
EBITDA* 58 48 35
4Q12
3Q13
4Q13
* Figures in US$ million
Tissue Paper Sales Volumes by Country 3% 2% 4% 12%
14%
24%
144 th. Tons 22%
19%
Tissue Paper sales volumes fell 1% from 3Q13, and rose 2% from 4Q12. The QoQ decline was in line with usual seasonal sales of tissue in the Southern Hemisphere. The YoY increase can be attributed to market growth in most countries in which we operate. Sanitary Products sales volumes increased by 1% QoQ and 12% YoY, driven by growing demand across markets and higher market share for CMPC’s diapers and feminine care products. Average sales prices (measured in US$) remained stable for tissue paper when compared to 3Q13, while sanitary products’ average price decreased 3%. It is important to mention that the appreciation of the US Dollar negatively affected tissue paper and sanitary products prices during the quarter. EBITDA in 4Q13 fell 17%, QoQ and rose 35% YoY. The QoQ decrease was mainly affected by the lower volumes and the negative effect of the depreciation of local currencies. These was partly offset by the decrease in direct costs during the quarter, mainly due to lower recycled paper costs and lower electricity prices in Chile and Peru, which more than offset higher pulp prices. CMPC also shifted production to use more recycled paper.
Chile Brazil Argentina Mexico Peru Uruguay Colombia Ecuador
10
INCOME STATEMENT ANALYSIS Operating costs excluding depreciation, stumpage and decrease due to harvest totaled US$826 million, up 4% from 3Q13 and 1% from 4Q12. The QoQ increase was partly explained by higher sales and by higher seasonal costs in the Forestry division. At a consolidated level, operating costs in 4Q13 were 66% of total revenues, compared with 65% in 3Q13 and 67% in 4Q12. Other operating expenses totaled to US$179 million, up 1% from 3Q13 and down 4% from 4Q12. The QoQ change was driven by higher sales and higher seasonal costs in the Tissue division partly offset by lower distribution costs in all business divisions. YoY the decrease is explained by lower distribution costs in all business divisions. At a consolidated level, other operating expenses in 4Q13 were 14% of total revenues, compared with 14% in 3Q13 and 15% in 4Q12. Financial expenses increased 5% from 3Q13. In addition, CMPC’s Financial Income increased 29% when compared with 3Q13. During this quarter there was a lower Share of profit in associated companies, which decreased to US$2 million.
Currency Exchange rate differences were US$21 million, a result of the appreciation of the US Dollar. Indexation Unit Results registered a US$9 million loss in the quarter, due to the appreciation of the UF, Chile’s inflation-linked currency. Other gains (losses) resulted in a loss of US$150,000. This category includes non-core business revenues 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. Income taxes represented an expense of US$78 million in 4Q13, compared with a gain of approximately US$4 million in 3Q13 and a US$27 million expense in 4Q12. This change is the result of the depreciation of the Chilean peso and the effect of exchange rates differences on deferred taxes. This is because CMPC’s tax accounting is in Chilean Pesos and the depreciation of this currency increases the tax base of assets measured in dollars, and therefore the Deferred taxes account.
11
BALANCE SHEET ANALYSIS Cash and cash equivalents totaled US$927 million as of December 31st, 2013, up 11% from the end of 3Q13 and up 115% from the end of 4Q12. The QoQ change is mainly due to the sale of the Company’s 7.74% stake in Bicecorp S.A. in December 2013 for approximately US$106 million.
As of December 31st 2013, Current assets were up 1% from September 30th 2013. Non-current assets remained stable from September 30th. This is the result of an increase in fixed assets at the Guaíba pulp facility, offset by the sale of the stake in Bicecorp S.A. Current liabilities were up by 5% from September 30th mainly explained by higher accounts payable as well as higher tax liabilities due to the Bicecorp S.A. sale. Non-current liabilities were up 1% from September 30th 2013. Financial Ratio Evolution
CMPC’s financial debt stood at US$3,730 million as of December 31st 2013, 1% lower from September 30th 2013. Net financial debt was US$2,707 million as of December 31st 2013, 3% lower from September 30th, due to higher levels of cash. The Net Debt/EBITDA ratio was 2.8x, down from 3.0x in 3Q13 and 3.3x in 4Q12.
5.45x
3.3x
0.48x 4Q12
5.53x
5.67x
3.0x
2.8x
0.46x
0.46x
3Q13 Net Financial Debt / EBITDA Financial Debt / Tangible Net Worth
Debt breakdown as of December 31st, 2013
(i) (ii) (iii) (iv)
Interest Coverage Ratio
In Million US$
4 Q1 2
3 Q1 3
4 Q1 3
Current Interest-bearing Liabilities Non Current Interest-bearing Liabilities Other Obligations Mark to Market of Derivatives Debt Instruments for Hedging Currencies and Interest Rates
668 3,229 (48)
291 3,552 (47)
277 3,575 (46)
(98) -
(11) -
(75) -
(v) Net Hedging Current Liabilities related to Debt Instruments (vi) Net Hedging Non Current Liabilities related to Debt Instruments Total D ebt ( (i) + (ii) + (iii) + (iv) + (v) + (vi) ) Cash* Net D ebt Average Cost of Debt
3 ,7 5 0 741 3 ,0 0 9 4.1%
Δ% QoQ Δ% YoY -5% 1% -1% 612%
-59% 11% -5% -24%
-
-
-1 %
-1 %
1,023
3%
38%
2 ,7 9 3 2 ,7 0 7
-3 %
-1 0 %
2%
2%
3 ,7 8 6 3 ,7 3 0 993
4.1%
4 .2 %
*Cash and cash equivalents + Term deposits within 90 to 360 days of maturity
12
DEBT ANALYSIS
Amortization Schedule as of December 31st, 2013 EBITDA LTM: US$964 million
969
564
528
535
2018
2019
2020/22
329
222 2014
519
27 2015
2016
2017
Debt by Issuer 10%
2023/30
Debt by Currency
3%
9% 11%
80%
87% Inversiones CMPC
Tissue
Debt by Interest Rate
Other
US$
CLP
Other
Debt by Type
9% 23%
91% Fixed Rate
Floating Rate
77%
Banks
Bonds
13
CAPITAL EXPENDITURES Distribution Center - Caieiras, Brazil
Capital expenditures in the quarter totaled US$265 million, up 16% from 3Q13 and down 45% from 4Q12. The YoY decline was mainly due to a high base of comparison due to the acquisition of the Losango forestry assets in December 2012 for approximately US$ 300 million. Total cash disbursed related to the Guaíba expansion project in 4Q13 totaled approximately US$230 million. CMPC’s Board of Directors approved a new tissue machine for the Altamira Mill in Mexico. The machine will have a capacity of 50,000 tons capacity and will start operations in 3Q15.
CAPEX 479
228
4Q12
3Q13
265
4Q13
The Guaíba project continues on schedule and on budget with approximately US$500 million disbursed during 2013. As of December 31st, 2013, more than 3,300 people were working in the construction site, of whom more than 66% were from the local community.
Main current projects F orestry D escription
Pulp
Paper
Tissue
Second line - Mininco Second line - Guaíba Cogeneration plant - Cogeneration plant Plant Mill Puente Alto Mill Talagante Mill
Tissue
Tissue
Tissue machine Altamira Mill (Mexico)
Cogeneration plant Altamira Mill (Mexico)
C apacity
260 th. m3/year
1.3 million tons/year
44MW + 80 tons steam /hour
20MW + 25 tons steam /hour
50 th. tons/year
21MW + 30 tons steam /hour
Budget
US$120 million
US$2.1 billion
US$70 million
US$32 million
US$127 million
US$34 million
Start up
4Q13
2Q15
2Q15
2Q15
3Q15
3Q15
Spending C ompletion %
100%
24%
1%
0%
5%
0%
14
RELEVANT EVENTS New Distribution Center for Melhoramentos Papeis: In October 2013 the new tissue distribution center in the city of Caieiras, Brazil began operations. The center represents a total investment of US$25 million and includes 40,000m2 of warehouse space. The center will allow CMPC to improve its distribution to cities including São Paulo, Rio de Janeiro and Belo Horizonte. New Tissue Machine for the Altamira Mill: CMPC’s Board of Directors approved a new tissue machine for the Altamira Mill in Mexico. The machine will have a capacity of 50,000 tons and will start operations in 3Q15. The project, which includes a cogeneration plant and conversion capacity, will imply a total investment of US$160 million. ECA Financing for the Guaíba 2 Project: On December 20th, CMPC closed two credit facilities for the Guaíba 2 Project with EKN, and Finnvera Export Credit Agencies (ECA) from Sweden and Finland respectively. EKN credit facility totals approximately US$120 million (subject to a 5% Premium payment) whereas Finnvera’s totals US$220 million (with a 5.3% Premium payment). Both facilities use fixed interest rate based on a CIRR rate of 2.31% and are structured as a 10-year term amortization of principal and interest payment on a semiannual basis with a 2 year grace period. Closure of Newsprint Operations: On November 12th, the Papeles Rio Vergara newsprint mill located in Nacimiento, Chile ceased operations. The closure resulted in a net charge of US$40 million, which was recognized in 3Q13’s results. Bicecorp sale: On December 4th, CMPC completed the sale of its 7.74% (6,583,741 shares) stake in Bicecorp S.A.. The auction was executed at a price of CLP$8,550 per share, for a total of CLP$56,290,985,550 (approximately US$106 million). The Bicecorp sale was part of the previously announced financing package for CMPC’s expansion of the Guaíba pulp facility. Reorganization of the paper and packaging divisions: On December 5th, CMPC announced the reorganization of the Company’s paper and packaging business. As part of this plan, former CMPC Papers and CMPC Paper Products divisions have been combined. Also, the Paper Products subsidiaries that manufacture cardboard boxes, Envases Impresos S.A. and Envases Roble Alto S.A., merged into the new subsidiary Envases Impresos Roble Alto S.A. Provisory CLP$5 cash dividend: A dividend of CLP$5 per outstanding share was approved by CMPC’s Board of Directors and paid on December 27th, 2013.
15
RELEVANT EVENTS CMPC Investor Day CMPC will host its 1st Investor Day on Thursday April 24th 2014 in Santiago, Chile. The event includes a site visit to the Talagante Tissue Mill and meetings attended by Hernán Rodríguez (CEO), Luis Llanos (CFO), Guillermo Mullins (Commercial Officer, Pulp Division) and other executive officers. To register for the event, please email chenriquezb@gerencia.cmpc.cl.
16
CAPITAL MARKETS Equity
Average price during the quarter was CLP$1,492 compared to CLP$1,552 in 3Q13. Average daily volume traded was 1.2 million shares. Average daily financial volume was CLP$1,766 million.
Price Evolution 1,600
1,550 1,500
CL P$
1,450 1,400
1,350 1,300 1,250
1,200
Source: Bloomberg
Fixed Income
International Bonds
Yield % ( 1 ) Currency 4Q12 3Q13 4Q13 CMPC 2018 US$ 3.3 3.6 3.3 CMPC 2019 US$ 3.7 4.5 4.2 CMPC 2022 US$ 4.0 5.2 5.2 CMPC 2023 US$ 5.2 5.2
QoQ -8% -7% 0% -2%
YoY 2% 13% 28% -
Source: Bloomberg
Local bonds in Chile
Yield % ( 1 ) BCMPC - A BCMPC - B BCMPC - D BCMPC - F
Currency 4Q12 UF UF UF UF
Source: Bolsa de Comercio de Santiago (1) Average Mid Yield
3.5 4.1 3.6 3.8
3Q13 3.2 4.2 3.2 3.8
4Q13 3.2 3.8 4.0 3.7
QoQ
YoY
-11% 1% -13% -1%
-7% 1% -13% 0% 17
BALANCE SHEET 2012 Figures in Th. US$*
C urrent Assets Cash and Cash Equivalents Operative Receivables Inventories Biological Assets Tax Assets Other Current Assets
1 Q1 2
2 Q1 2
2013 3 Q1 2
4 Q1 2
1 Q1 3
2 Q1 3
4 Q1 3 3 Q1 3
4 Q1 3
QoQ
YoY
3 ,3 1 2 ,4 5 1 366,687 969,757 1,042,859 223,459 148,402 561,287
3 ,5 0 9 ,0 8 5 542,303 913,132 1,060,528 218,363 127,275 647,484
3 ,4 5 0 ,4 8 0 550,670 919,126 1,087,790 217,544 147,301 528,049
3 ,3 5 3 ,6 9 3 431,242 955,232 1,098,369 244,886 154,964 469,000
3 ,3 6 6 ,4 6 5 433,767 946,419 1,111,044 236,858 167,205 471,172
3 ,6 8 0 ,5 1 5 1,012,019 932,873 1,053,658 236,404 128,248 317,313
3 ,4 5 4 ,3 5 8 833,967 946,129 1,086,941 235,881 106,611 244,829
3 ,4 8 8 ,7 8 0 927,249 917,235 1,057,951 251,568 122,630 212,147
1% 11% -3% -3% 7% 15% -13%
4% 115% -4% -4% 3% -21% -55%
Non C urrent Assets Intangible Assets, Different from Goodwill Goodwill Property, Plant and Equipment, Net Biological Assets Deferred Tax Assets Other Non Current Assets
1 0 ,2 2 3 ,7 6 0 10,071 156,878 6,464,886 3,267,626 133,783 190,516
1 0 ,1 1 2 ,0 7 5 9,586 149,942 6,433,556 3,288,415 45,535 185,041
1 0 ,1 6 2 ,9 8 0 9,491 149,244 6,478,299 3,298,355 54,867 172,724
1 0 ,5 2 5 ,6 8 9 10,546 142,691 6,569,815 3,280,990 54,052 467,595
1 0 ,7 0 6 ,6 5 6 14,952 143,114 6,554,675 3,310,103 207,352 476,460
1 0 ,5 6 1 ,0 1 0 14,624 137,112 6,579,774 3,316,569 51,545 461,386
1 0 ,6 9 7 ,2 0 0 14,383 136,000 6,650,920 3,311,019 56,404 528,474
1 0 ,6 9 9 ,0 7 4 14,904 132,291 6,810,573 3,306,717 46,072 388,517
0% 4% -3% 2% 0% -18% -26%
2% 41% -7% 4% 1% -15% -17%
TOTAL ASSETS
1 3 ,5 3 6 ,2 1 1
1 3 ,6 2 1 ,1 6 0
1 3 ,6 1 3 ,4 6 0
1 3 ,8 7 9 ,3 8 2
1 4 ,0 7 3 ,1 2 1
1 4 ,2 4 1 ,5 2 5
1 4 ,1 5 1 ,5 5 8
1 4 ,1 8 7 ,8 5 4
0%
2%
C urrent Liabilities Other Financial Liabilities Operative Liabilities Other Current Liabilities
1 ,0 9 6 ,9 9 4 241,289 653,984 201,721
1 ,1 6 0 ,0 6 5 416,413 588,767 154,885
1 ,3 8 1 ,1 2 1 563,243 643,767 174,111
1 ,5 6 9 ,2 3 5 705,490 707,031 156,714
1 ,6 8 9 ,5 5 0 890,148 647,773 151,629
1 ,2 0 5 ,0 6 9 551,558 573,513 79,998
1 ,0 8 4 ,7 9 8 381,382 600,341 103,075
1 ,1 3 8 ,2 0 0 378,138 646,865 113,197
5% -1% 8% 10%
-2 7 % -46% -9% -28%
Non C urrent Liabilities Other Financial Liabilities Deferred Tax Liabilities Other Non Current Liabilities
4 ,4 1 8 ,5 3 3 3,218,130 931,633 268,770
4 ,5 0 0 ,1 8 0 3,387,947 861,337 250,896
4 ,2 5 1 ,0 5 4 3,143,351 946,112 161,591
4 ,3 2 5 ,1 1 3 3,230,886 955,449 138,778
4 ,3 3 2 ,4 8 9 3,097,142 1,095,247 140,100
4 ,6 9 7 ,4 1 6 3,548,429 1,022,257 126,730
4 ,6 7 6 ,3 4 1 3,568,630 997,097 110,614
4 ,7 2 9 ,8 8 5 3,582,714 1,024,778 122,393
1% 0% 3% 11%
9% 11% 7% -12%
9 ,5 0 8
4 ,7 1 3
4 ,7 2 3
4 ,7 2 2
4 ,8 0 1
4 ,3 5 7
4 ,3 8 3
4 ,2 4 5
-3 %
-1 0 %
Non C ontrolling Participations Equity Attributable to the Owners of the C ontroller TOTAL LIABILITIES & SHAREHOLD ERS' EQUITY
8 ,0 1 1 ,1 7 6
7 ,9 5 6 ,2 0 2
7 ,9 7 6 ,5 6 2
7 ,9 8 0 ,3 1 2
8 ,0 4 6 ,2 8 1
8 ,3 3 4 ,6 8 3
8 ,3 8 6 ,0 3 6
8 ,3 1 5 ,5 2 4
-1 %
4%
1 3 ,5 3 6 ,2 1 1
1 3 ,6 2 1 ,1 6 0
1 3 ,6 1 3 ,4 6 0
1 3 ,8 7 9 ,3 8 2
1 4 ,0 7 3 ,1 2 1
1 4 ,2 4 1 ,5 2 5
1 4 ,1 5 1 ,5 5 8
1 4 ,1 8 7 ,8 5 4
0%
2%
* Balance Sheet numbers are based on CMPC's quarterly financial data, which is presented to the "Superintendencia de Valores y Seguros" (SVS) .
18
INCOME STATEMENT 2012 Figures in Th. US$
1 Q1 2
2 Q1 2
2013 3 Q1 2
4 Q1 2
1 Q1 3
2 Q1 3
4 Q1 3 3 Q1 3
4 Q1 3
QoQ
YoY
Sales
1,176,975
1,160,717
1,208,625
1,213,003
1,193,670
1,290,776 1,230,528
1,259,485
2%
4%
Operating Costs(1)
(799,287)
(752,084)
(795,226)
(816,831)
(819,774)
(870,932) (794,907)
(826,165)
4%
1%
Operating Margin
3 7 7 ,6 8 8
4 0 8 ,6 3 3
4 1 3 ,3 9 9
3 9 6 ,1 7 2
3 7 3 ,8 9 6
4 1 9 ,8 4 4 4 3 5 ,6 2 1
4 3 3 ,3 2 0
-1%
9%
Other Operating Expenses(2)
(153,331)
(168,958)
(172,829)
(186,690)
(161,715)
(180,781) (177,196)
(179,129)
1%
-4%
EBITD A ( 3) EBITDA Margin (%)
2 2 4 ,3 5 7 19%
2 3 9 ,6 7 5 21%
2 4 0 ,5 7 0 20%
2 0 9 ,4 8 2 17%
2 1 2 ,1 8 1 18%
2 3 9 ,0 6 3 2 5 8 ,4 2 5 19% 21%
2 5 4 ,1 9 1 20%
-2% 1%
21% -2%
Depreciation, Amortizations and Stumpage (106,085) Increase in Biological Assets due to Forests Growth and Price Effects 58,222 Decrease in Biological Assets due to Harvest (44,104)
(102,156) 58,221 (52,743)
(100,691) 61,915 (53,596)
(115,842) 60,026 (51,155)
(105,380) 51,903 (46,134)
(106,200) (105,773) 51,904 51,114 (51,812) (56,155)
(107,770) 53,019 (57,909)
2% 4% 3%
-7% -12% 13%
Operating Income
1 3 2 ,3 9 0
1 4 2 ,9 9 7
1 4 8 ,1 9 8
1 1 2 ,5 7 0
1 3 2 ,9 5 5 1 4 7 ,6 1 1
1 4 1 ,5 3 1
-4%
38%
(41,310) 8,926 3,435 (14,971) (8,214) (5,182) 49,280
(45,809) 8,892 2,160 (1,345) (2,937) (12,594) (54,832)
(45,439) 10,742 3,093 (31,654) (765) 12,212 (95,140)
1 0 2 ,5 1 1 (42,673) 8,715 4,122 10,484 (6,213) (9,537) (27,132)
(41,638) 6,202 2,631 (13,419) (1,016) 14,653 4,332
(43,918) 5,868 1,032 39,574 701 2,904 (108,550)
(43,217) 4,069 3,131 (10,339) (8,708) (53,202) 3,947
(45,525) 5,232 2,085 21,204 (8,926) (150) (77,991)
5% 29% -33% -305% 3% -100% -2076%
7% -40% -49% 102% 44% -98% 187%
1 2 4 ,3 5 4
3 6 ,5 3 2
1 ,2 4 7
4 0 ,2 7 7
8 4 ,3 1 5
3 0 ,5 6 6
4 3 ,2 9 2
3 7 ,4 6 0
-13%
-7%
Financial Expenses Financial Income Share Results in Associated Companies Foreign Exchange Difference Indexation Unit Results Other Gains (Losses) Income Taxes Net Income
(1) Operating Costs 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
19
CASH FLOW STATEMENT 2012 F igures in Th. US C ash F low from Operating Activities
1 Q1 2
2 Q1 2
2013 3 Q1 2
4 Q1 2
1 Q1 3
2 Q1 3
4 Q1 3 3 Q1 3
4 Q1 3
QoQ
YoY
1 7 9 ,0 1 7
1 5 9 ,1 8 0
2 5 6 ,6 6 5
1 6 2 ,9 1 6 0
1 6 2 ,9 6 5
2 1 8 ,2 9 9
2 2 6 ,8 3 2
2 2 1 ,0 7 1
-3 %
36%
1,420,809 59,293
1,396,521 57,723
1,412,810 55,993
1% -3%
4% -20%
(1,044,892) (1,051,700) (1,138,430) (158,368) (139,983) (24,246) (64) (415) (25,051) (43,420) (41,795) (46,711) 2 3 3 ,3 5 8 2 2 0 ,3 5 1 2 3 4 ,3 6 5 (15,059) 6,481 (13,294) 0 0 0
8% -83% 5936% 12% 6% -305% -
-9% -143% 4% 141% 31% -19% -
C ash collection from operating activities Collections from sales of goods and services delivered Other cash collections from operating activities Payments for operating activities Payments to suppliers for goods and services Payments to and on behalf of employees Payments for premiums, benefits, annuities, and other obligations derived from suscribed policies Other payments from operating activities Net cash flows from (used in) operating activities Income taxes paid (reimbursed) Other cash inflows (outflows)
1,280,431 84,793
1,375,528 66,581
1,304,311 81,937
1,352,692 70,343
1,363,551 69,422
(1,042,197) (80,894) (97) (40,559) 2 0 1 ,4 7 7 (22,460) 0
(1,027,199) (169,038) 0 (54,019) 1 9 1 ,8 5 3 (32,673) 0
(913,822) (137,109) 0 (46,360) 2 8 8 ,9 5 7 (32,292) 0
(1,082,802) (115,162) (1,062) (49,901) 1 8 4 ,0 4 6 (21,081) 0
C ash F low from Investment Activities
3 0 ,2 3 4
(1,256,713) 56,448 (24,109) (19,406) 1 7 9 ,2 5 5 (16,339) 0 0 (4 3 2 ,1 7 0 )
(1 3 6 ,0 7 6 )
(8 6 ,6 8 2 )
(2 0 1 ,9 5 1 )
(2 2 4 ,0 7 0 )
-4 1 %
-7 3 %
0 0 41 (167,476) 0 (13,383) (11,312) 6,465 0 6,422 (252,927) 0 1 1 9 ,6 1 4
0 0 0 (130,544) 1,241 (13,948) (5,923) 1,930 0 6,217 4,951
0 0 892 (210,270) 0 (16,328) (21,690) 28,366 3,585 5,053 123,710
0 (278) 792 (205,827) 0 (23,157) (20,299) 16,721 1 3,918 26,178
105,746 (55) 2,497 (252,822) 348 (15,011) (38,213) 17,573 0 5,521 56,092
-80% 215% 23% -35% 88% 5% -100% 41% 114%
5990% 51% 12% 238% 172% -14% -122%
(1 9 9 ,0 4 1 )
2 ,3 6 6
-1 0 1 %
-9 8 %
134,787 0 1 3 4 ,7 8 7 0 (272,619) (22,869) (38,340) 0
(107,183) 221,732 1 1 4 ,5 4 9 23,273 (64,958) (22,086) (48,412) 0
-180% -1 5 % -76% -3% 26% -
-203% -1 1 6 % -111% -124% -140% -
(1 7 4 ,1 6 0 )
(6 3 3 )
-1 6 0 %
-1 7 0 %
(3,892)
(11,831)
204%
19%
(1 5 8 ,5 3 9 )
(2 2 7 ,2 5 8 )
Cash flows from losing control of subsidiaries or other businesses Cash flows used for acquiring subsidiaries Amounts obtained from the sale of property, plant and equipment Purchases of property, plant and equipment Cash obtained from the sale of intangible assets Purchases of other long-term assets Payments of future contracts, forwards, options and swaps Collections of future contracts, forwards, options and swaps Dividends received Interest received Other cash inflows (outflows)
0 0 9,561 (158,039) 0 (15,646) (6,700) 0 0 8,698 3,587
0 (792) 101 (136,396) 5,480 (22,727) 2,830 0 3,379 8,804 (87,937)
C ash F low from F inancing Activities
(9 5 ,5 9 8 )
2 7 0 ,9 4 0
Proceeds raised through short-term loans Proceeds raised through long-term loans Proceeds raised through loans Proceeds from equity issuances Loans reimbursements Dividends paid Interest paid Other cash inflows (outflows)
0 105,411 1 0 5 ,4 1 1 0 (156,526) (149) (44,334) 0
521,457 47,704 5 6 9 ,1 6 1 0 (210,295) (53,902) (34,024) 0
(29,710) 61,438 3 1 ,7 2 8 0 (245,183) (37,504) (43,997) 0
Net increase (decrease) in cash and cash equivalents before effect of exchanges rate change
(7 5 ,1 2 0 )
2 0 2 ,8 6 2
(8 ,0 5 7 )
Effects of variation in the exchange rate on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period C ash and cash equivalents at end of period Term deposits within 90 to 360 days of maturity Total C ash at the end of the period
37,450
(27,246)
0 0 240 (106,551) 0 (24,249) (22,320) 0 0 10,414 172,700 (2 9 4 ,9 5 6 )
16,424
(3 7 ,6 7 0 )
1 7 5 ,6 1 6
8 ,3 6 7
404,357
366,687
542,303
3 6 6 ,6 8 7
5 4 2 ,3 0 3
5 5 0 ,6 7 0
416,152
515,307
362,831
7 8 2 ,8 3 9
1 ,0 5 7 ,6 1 0
9 1 3 ,5 0 1
(491,747) (214,553) (7 0 6 ,3 0 0 ) 0 612,004 91,555 122,355 0 0 (1 4 9 ,6 4 0 ) 0 (9,949) 0 (1 5 9 ,5 8 9 ) 0 550,670 0 3 9 1 ,0 8 1 0 309,4870 0 7 0 0 ,5 6 8
(2 8 ,3 8 1 )
4 6 1 ,7 5 1
0 156,957 1 5 6 ,9 5 7 0 (146,143) (79) (39,116) 0
235,109 338,027 5 7 3 ,1 3 6 437,414 (478,233) (27,665) (42,858) (43)
(1 ,4 9 2 ) 4,017
5 9 3 ,3 6 8 (15,116)
2 ,5 2 5
5 7 8 ,2 5 2
(1 7 8 ,0 5 2 )
(1 2 ,4 6 4 )
-1 5 2 %
-1 5 8 %
431,242
433,767
1,012,019
833,967
-18%
51%
4 3 3 ,7 6 7
1 ,0 1 2 ,0 1 9
8 3 3 ,9 6 7
8 2 1 ,5 0 3
11%
137%
310,475
185,161
158,789
95,996
-40%
-69%
7 4 4 ,2 4 2
1 ,1 9 7 ,1 8 0
9 9 2 ,7 5 6
9 1 7 ,4 9 9
3%
46%
20