EMPRESAS CMPC FIRST QUARTER 2014 RESULTS
Empresas CMPC recently celebrated its 1st Investor Day. The event is indicative of CMPC’s commitment to openness and to a transparent relationship with its investors, qualities that form part of our long-term vision for the Company.
FIRST QUARTER 2014 RESULTS Topics
1Q14 Highlights
3
Sales and EBITDA Analysis
4-5
Sales Analysis:
6 - 10
Forestry
5
Pulp
7-8
Paper
9
Tissue
10
Management Comment The first quarter was one of continued progress for CMPC. We saw growth in the volumes of pulp and tissue sold when compared with the first quarter of 2013, in keeping with our status as a large-scale producer with customers in multiple markets. We have also diligently managed our cost base and worked to enhance our efficiency, helping us to expand our EBITDA margin to 21%. At our landmark Guaiba II pulp project, we continue on schedule and on budget. Work at Guaiba II as of March 31st is approximately 50% complete, and the structure of the recovery boiler is now in place. We remain confident we will meet our expected start-up iat the end of the second quarter of 2015. To help fund this investment, we recently announced a capital increase for US$250 million, part of our commitment to limit leverage and protect our investment grade rating.
Income Statement Analysis
11
Balance Sheet Analysis
12
Our scale and successful cost management provide us with a solid foundation for the remainder of 2014, while investment in Guaiba II will continue to ramp up throughout the year. We look forward to keeping the market informed of our progress.
Debt Analysis
13
About CMPC
Capital Expenditures
14
Relevant Events
15
Capital Markets
16
Financial Information
17 - 19
Conference Call Date: May 8th, 2014 @ 4:30 PM ET US Toll Free: 1-877-317-6789 International Dial: 1-412-317-6789 Webcast: http://services.choruscall.com/links /cmpc140508.html
Empresas CMPC produces forestry, pulp, paper, tissue and packaging products throughout Latin America. The company aims to deliver world-class 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: Trinidad Valdés M. mtvaldes@gerencia.cmpc.cl 56-2-2441-2713
Press: Sebastián Garcés O. sgarceso@gerencia.cmpc.cl 56-2-2441-2279
Colomba Henríquez B. chenriquezb@gerencia.cmpc.cl 56-2-2441-2791
2
1Q14 HIGHLIGHTS EBITDA of US$250 million, down 2% when compared to 4Q13 and up 18% compared to 1Q13.
EBITDA margin of 21%, compared with 20% in 4Q13 and 18% in 1Q13. Sales of US$1,179 million, down 6% from 4Q13 and 1% from 1Q13. Pulp sales of 542,000 tons, down 6% QoQ and up 13% YoY. Pulp EBITDA of US$142 million, up 11% QoQ and 61% YoY. Net Debt/EBITDA ratio of 2.9x, up from 2.8x in 4Q13 and down from 3.4x in 1Q13. Net Income of US$46 million, 24% higher than 4Q13 and 45% lower than 1Q13. Net Income for the quarter excluding the currency movement impact on Deferred taxes would have been US$59 million. A US$250 million capital increase was approved at the Company’s 54th Extraordinary Shareholders’ Meeting. CMPC celebrated its 1st Investor Day.
Main Figures US $ Million
1Q 13
4Q 13
1Q 14
Q oQ
Y oY
Y TD 2013
Y TD 2014
Y TD ' 14 / Y TD ' 13
Sales EBITDA EBITDA Margin Net Income
1,194 212 18% 84
1,259 254 20% 37
1,179 250 21% 46 0
-6% -2% 5% 24%
-1% 18% 19% -45%
1,194 212 18% 84
1,179 250 21% 46
-1% 18% 3% -45%
143
265
20%
122%
143
317
122%
Total Assets Net Debt Market Capitalization
14,073 3,039 7,993
14,188 2,707 5,822
0% 7% -7%
1% -5% -32%
14,073 3,039 7,993
14,171 2,890 5,434
1% -5% -32%
Closing Exchange Rate (CLP/US$) Average Exchange Rate (CLP/US$)
472.03 472.40
524.61 516.00
317 0 0 14,171 2,890 5,434 0 0 551.18 551.48
5% 7%
17% 17%
472.03 472.40
551.18 551.48
17% 17%
CAPEX
0
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
1Q13
4Q13
11%
1Q14 10%
12% 37%
37%
37%
28%
30%
31% 20%
24%
Forestry
23%
Pulp
Paper
Tissue
Third Party Sales by Destination
1Q13
4Q13 27%
31%
1Q14 23%
31%
25%
31%
46%
42%
Domestic Sales Foreign Subsidiaries
Domestic Sales Chile
44%
Export Sales
EBITDA by Business Area
4Q13
1Q13 26%
12%
19%
1Q14
15%
16% 18%
17% 21%
41%
56%
49%
Forestry
Pulp
10%
Paper
Tissue
4
SALES AND EBITDA ANALYSIS Total Revenues were US$1,179 million during the quarter, 6% lower compared to 4Q13 and 1% lower compared to 1Q13. The QoQ decrease was mainly due to the lower sales in the Pulp, Forestry and Tissue divisions. Pulp sales were affected by lower volumes and lower hardwood prices, while the Forestry division registered lower volumes in most products. Also, Tissue sales were mainly affected by the depreciation of local currencies. All the above was partly compensated by the higher sales of the Paper division due to the seasonality of the packaging division. The YoY decrease is mainly due to the Forestry, Paper and Tissue divisions. The decrease was almost offset by the increase in the Pulp division, which saw a 13% increase in sale volumes. Operating costs, excluding depreciation, stumpage and decrease due to harvest, totaled US$769 million, down 7% from 4Q13 and 6% from 1Q13. The QoQ decrease is partly the result of lower consolidated sales and lower direct costs in the Pulp Division. At a consolidated level, operating costs in 1Q14 were 65% of total revenues, compared with 66% in 4Q13 and 69% in 1Q13. EBITDA totaled US$250 million, down 2% from 4Q13 and up 18% from 1Q13. The QoQ decrease is the result of lower EBITDA contribution from the Forestry and Tissue division partly compensated by the higher EBITDA in the Pulp and Paper divisions. The YoY increase is mainly due to the Pulp division which benefited from higher pulp volumes and lower operating costs.
Revenues Analysis to Third Parties
EBITDA Variation by Business
∆ Prices
+1
∆ Volumes
+12
+8
+9 -17
-16 -28 + 10
-15 1,259
-1
-23
-20
250
254
-4
1,179
Sales 4Q13
Forestry -27
Pulp -38
Papers +9
Tissue -25
Sales 1Q14
EBITDA 4Q13
Forestry
Pulp
Papers
Tissue
Holding & Others
EBITDA 1Q14
5
FORESTRY In 1Q14, Forestry revenues decreased 18% from 4Q13 and 74% from 1Q13.
Sales* 147
129
1Q13
120
4Q13
QoQ sales volumes decreased 19%, driven by the lower sales of pulpwood (-67%), sawn wood (-23%), remanufactured wood (-17%) and plywood (-7%). Pulpwood volumes were affected by the lower wood chip sales in Chile. Sawn wood and remanufactured wood volumes were affected by the reduced availability of containers due to the lags generated by the port strike in Chile early this year. This situation had normalized by the end of April. Remanufactured wood volumes were also affected by a decrease in demand in United States associated with seasonal factors. 1Q14’s volumes were 8% lower when compared to 1Q13 due to lower volumes sold of pulpwood (-59%), remanufactured wood (-17%), sawn wood (-5%) and plywood (-2%), which was partly offset by higher sawing logs (+8%) volumes.
1Q14
EBITDA* 38
26
25
1Q13
4Q13
Average sale prices decreased 3% compared to 4Q13, and decreased 3% when compared to 1Q13 both driven by lower pulp wood prices due to a lower price mix.
1Q14
* Figures in US$ million
Volumes (Th. m 3 )
1 Q1 3
4 Q1 3
1 Q1 4
Pulpwood
202
249
82
Sawing Logs
405
427
438
Sawn wood
187
230
177
Remanufactured wood
45
45
37
Plywood
52
54
50
Others
81
98
110
Total
973
1 ,1 0 3
895
EBITDA for the quarter fell 33% from 4Q13, and increased 4% when compared to 1Q13. The lower QoQ EBITDA is partly attributed to lower sales volumes and higher seasonal expenses, such as fire control.
6
PULP Global demand for Market Pulp decreased 0.8% in 1Q14 from 1Q13, or -109,000 tons. Chinese pulp demand rose, or +90,000 tons, but was more than offset by falling demand in Europe (-140,000 tons) and North America (-40,000 tons). Softwood demand during the quarter was relatively stable, decreasing only 0.1%, or 6,000 Th. tons, compared to 1Q13. Producers’ inventories have remained below 30 days, helping to maintain an upward trajectory in prices during the quarter. According to FOEX prices, softwood prices rose 1.7%, or US$15/ton compared to the end of 2013. Hardwood demand decreased 1.3%, or 95,000 tons, in 1Q14 compared to 1Q13. The decrease in demand was mainly due to 8% decline in the Asian Market (excluding China). Installed capacity during the quarter increased by 240,000 tons and consequently hardwood prices trended downward with a decline of US$30/ton compared to the end of 2013. This weaker pricing environment was a result of the new capacity entering the market and the expectations of higher capacity in South America. The price differential between softwood and hardwood continued to increase during the quarter, resulting in a substitution effect between the two fibers and leading to weaker softwood prices. Source: PPPC
850
829 772
800 U S$/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
731
668
680 648
643
633
3Q13
4Q13
616
563
500 1Q11
2Q11
3Q11
4Q11
1Q12
2Q12 BSKP
1Q13
2Q13
1Q14
BEKP
7
PULP During 1Q14, Pulp sales decreased 10% from 4Q13 and increased 7% from 1Q13.
Sales* 392
Market pulp sales volumes decreased 6% from 4Q13 and increased 13% from 1Q13. Sales volumes of softwood decreased 10% QoQ and rose 27% YoY, while hardwood decreased 4% QoQ and rose 8% YoY. Pulp exports were affected by the reduced availability of containers due to the lags generated during the port strike. This situation had normalized by the end of April. It is important to mention that softwood volumes were also affected by the scheduled maintenance downtime in the Pacifico mill and hardwood volumes by a delayed shipment from GuaĂba that will be recognized in 2Q14. The increase YoY volumes was mainly due to better operational rates.
355
331
1Q13
4Q13
1Q14
EBITDA* 142
128
Effective average sales prices (including a small tonnage of P&W papers and energy sold to the SIC grid) decreased 1% QoQ and 4% YoY. The average effective net export price was CIF 731 US$/ton for softwood and CIF 616 US$/ton for hardwood. During 1Q14, the spread between the two fibers was CIF 115 US$/ton, compared with CIF 80 US$/ton in 4Q13.
88
1Q13
4Q13
1Q14
* Figures in US$ million
Volumes (t h. To ns) 1 Q1 3 4 Q1 3 1 Q1 4 BSKP
121
171
154
BEKP
347
392
375
Other
12
13
12
480
576
542
Total Market Pulp
EBITDA in 1Q14 rose 11% from 4Q13 and 61% from 1Q13. Direct costs fell in Chile due to lower wood costs, currency depreciation and better operational performance in the mills. The Energy division contributed US$13 million of EBITDA during the quarter, compared to US$1 million in 4Q13.
8
PAPERS Sales* 284
In 1Q14, Paper sales rose 3% from 4Q13 and decreased 7% from 1Q13. 265
256
1Q13
4Q13
QoQ sales volumes increased 4% (not including newsprint volumes). The increase was led by corrugated boxes and molded pulp trays, whose sales volumes rose by 39% and 120% respectively, on seasonal effects. Corrugated paper volumes decreased 17%, affected by lower domestic sales, while paper bag volumes decreased 4%, affected mainly by lower sales in our Chilean and Mexican operations. Boxboard volumes decreased by 1% during the quarter. 1Q14 volumes decreased 1% from 1Q13 (not including newsprint volumes) as a result of lower corrugated paper and corrugated boxes volumes. Corrugated box volumes were highly affected by the weaker fruit exports during the summer fruit season in Chile. The decline was partly offset by a 11% increase in boxboard volumes.
1Q14
EBITDA * 46
45
45
Sale prices rose 1% from 4Q13 and 2% from 1Q13, mainly explained by higher corrugated paper prices. 1Q13
4Q13
1Q14
EBITDA in 1Q14 rose 1% from 4Q13, and fell 1% from 1Q13. The increase in sales was partly offset by higher direct costs due to the end of our energy contracts in Chile.
* Figures in US$ million
Volumes ( th. Tons) 1 Q1 3 4 Q1 3 1 Q1 4 Boxboard
88
100
Newsprint
16
10
-
Paper Bags Other Papers
19 33
22 37
21 33
76
91
C MPC Packaging
104
98
Corrugated Paper
32
30
25
Corrugated Boxes
65
42
59
Molded Pulp Trays
7
3
7
260
244
243
Total
9
TISSUE In 1Q14, Tissue sales fell 5% from 4Q13 and 2% from 1Q13.
Sales* 464
449
439
Tissue Paper sales volumes fell 2% from 4Q13, and rose 5% from 1Q13. The QoQ decrease is mainly explained by the lower volumes in Brazil and Argentina, partly offset by the higher volumes in Peru. The YoY increase can be attributed to the capacity increase from the new tissue machine in Chile that started operations in April 2013. 1Q13
4Q13
1Q14
EBITDA* 55
48
1Q13
4Q13
41
1Q14
* Figures in US$ million
Tissue Paper Sales Volumes by Country 3% 3% 3%
13% 15%
24%
142 th. Tons 21%
18%
Sanitary Products sales volumes increased by 2% QoQ and 21% YoY. The QoQ increase was mainly driven by higher volumes in Chile and Mexico. The YoY increase is due to growing demand across markets and higher market share for CMPC’s diapers and feminine care products.
Chile Brazil Argentina Mexico Peru Uruguay Colombia Ecuador
Average sales prices (measured in US$) decreased 3% for tissue paper when compared to 4Q13, while sanitary products’ average price decreased 7% in the same period. It is important to mention that the appreciation of the US Dollar negatively affected tissue paper and sanitary products prices measured in US$ during the quarter. Real prices increased during the quarter offsetting part of the depreciation of local currencies. EBITDA in 1Q14 fell 14% QoQ and 24% YoY. The QoQ decrease was mainly affected by the lower volumes and the negative effect of the depreciation of local currencies. Direct costs decreased during the quarter mainly due to lower fiber costs, which were partly offset by higher energy costs. The YoY change was mainly due to the depreciation of local currencies.
10
INCOME STATEMENT ANALYSIS Operating costs excluding depreciation, stumpage and decrease due to harvest, totaled US$769 million, down 7% from 4Q13 and 6% from 1Q13. The QoQ decrease is partly the result of lower consolidated sales and lower direct costs in the Pulp Division. At a consolidated level, operating costs in 1Q14 were 65% of total revenues, compared with 66% in 4Q13 and 69% in 1Q13. Other operating expenses totaled to US$160 million, down 11% from 4Q13 and 1% from 1Q13. The QoQ change was driven by lower consolidated sales and lower distributions costs mainly in the Pulp and Papers division. The YoY decrease is explained by lower distribution costs in all business divisions. At a consolidated level, other operating expenses in 1Q14 were 14% of total revenues stable QoQ and YoY. Financial expenses decreased 4% from 4Q13. In addition, CMPC’s Financial Income decreased 12% when compared with 4Q13. During this quarter there was a lower Share of profit in associated companies, which amounted to US$35,000.
Currency Exchange rate differences were US$20 million, a result of the appreciation of the US Dollar. Indexation Unit Results registered a US$10 million loss in the quarter, due to the depreciation of the UF, Chile’s inflation-linked currency. Other gains (losses) resulted in a loss of US$21 million. 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$48 million in 1Q14, compared with a loss of approximately US$78 million in 4Q13 and a US$4 million gain in 1Q13. 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 held by the Company totaled US$887 million as of March 31st, 2014, down 13% from the end of 4Q13 and up 19% from the end of 1Q13. The lower QoQ cash is mainly due to the Guaíba Project disbursements and the payment of the CMPC Chilean bond issued in 2009.
As of March 31st 2014, Current assets were down 5% from December 31st 2013, mainly due to the lower level of short term deposits. Non-current assets increased 1% from December 31st 2013. Current liabilities were up by 8% from December 31st 2013. Non-current liabilities were down 4% from December 31st 2013. The change in both accounts is due to the consideration of the bond CMPC 2015 in short term. Financial Ratio Evolution
CMPC’s financial debt stood at US$3,777 million as of March 31st 2014, 1% higher from December 31st 2013. Net financial debt was US$2,890 million as of March 31st 2014, 7% higher than December 31st 2013, mainly due to the lower level of cash held by the Company. The Net Debt/EBITDA ratio was 2.9x, up from 2.8x in 4Q13 and down from 3.4x in 1Q13.
5.67x
5.82x
2.8x
2.9x
0.48x
0.46x
0.46x
1Q13
4Q13
1Q14
5.24x 3.4x
Net Financial Debt / EBITDA Financial Debt / Tangible Net Worth Interest Coverage Ratio
Debt breakdown as of March 31st, 2014
(i) (ii) (iii) (iv)
In Million US$
1 Q1 3
4 Q1 3
1 Q1 4
Current Interest-bearing Liabilities Non Current Interest-bearing Liabilities Other Obligations Mark to Market of Derivatives Debt Instruments for Hedging Currencies and Interest Rates
843 3,094 (48)
277 3,575 (46)
478 3,394 (45)
(106) -
(75) -
(50) -
3 ,7 8 3 3 ,7 3 0
3 ,7 7 7
(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
744
Δ% QoQ Δ% YoY 73% -5% -1% -34%
-43% 10% -5% -53%
-
-
1%
0%
-13%
19%
1,023
887
3 ,0 3 9 2 ,7 0 7
2 ,8 9 0
7%
-5 %
4 .2 %
0%
-4%
4.1%
4.2%
*Cash and cash equivalents + Term deposits within 90 to 360 days of maturity
12
DEBT ANALYSIS Amortization Schedule as of March 31st , 2014 EBITDA LTM: US$1,002 million
986
574
544
542
2018
2019
599
352 51
96 2014
2015
2016
2017
2020/22
2023/30
Debt by Currency
Debt by Issuer 7%
6%
10%
4%
10%
80%
83% Inversiones CMPC
Tissue
Debt by Interest Rate
Pulp
US$
CLP
R$
Other
Debt by Type
5% 28%
72%
95% Fixed Rate
Floating Rate
Banks
Bonds
13
CAPITAL EXPENDITURES Guaíba Expansion – April 2014
Capital expenditures in the quarter totaled US$371 million, up 20% from 4Q13 and 122% from 1Q13. The QoQ increase was mainly due to the expenditures of the Guaíba 2 Project, with approximately US$250 million disbursed during the quarter.
CAPEX* 317 265
143
The Guaíba 2 project continues on schedule and on budget with approximately US$743 million disbursed as of March 31st 2014 and 50% of the construction completed. At the end of March 2014, approximately 5,000 people were working in the construction site.
1Q13
4Q13
1Q14
* Figures in US$ million
Main current projects
Pulp
Paper
Tissue
Tissue
Tissue
D escription
Second line - Guaíba Mill
Cogeneration plant Puente Alto Mill
Cogeneration plant Talagante Mill
Tissue machine Altamira Mill (Mexico)
Cogeneration plant Altamira Mill (Mexico)
C apacity
1.3 million tons/year
50 th. tons/year
21MW + 30 tons steam /hour
Budget
US$2.1 billion
US$70 million
US$32 million
US$96 million
US$34 million
Start up
2Q15
2Q15
2Q15
3Q15
3Q15
Spending C ompletion %
35%
9%
1%
10%
0%
44MW + 80 tons steam 20MW + 25 tons steam /hour /hour
14
RELEVANT EVENTS A US$250 million capital increase was approved at the Company’s 54th Extraordinary Shareholders’ Meeting: On April 22nd, Empresas CMPC’s Shareholders approved a plan to issue a total of 125 million new shares. The Board of Directors was authorized to issue the new shares and set the price for the preferential subscription period which should start within 180 days after the Extraordinary Shareholders’ Meeting. Proceeds from the capital raise will go towards funding the new US$2.1 billion pulp line at the Guaíba facility in Brazil. Empresas CMPC’s Ordinary Shareholders’ Meeting elected directors for a period of three years: On April 22nd, Empresas CMPC’s Shareholders appointed its directors for the 2014-2017 period. The Board was composed of the same members elected in 2011: Eliodoro Matte L. as Chairman and Martin Costabal Ll., Erwin Hahn H., Arturo Mackenna I., Jorge Marín C., Bernardo Matte L. and Jorge Gabriel Larraín B. as board members. Provisory CLP$5 cash dividend: A dividend of CLP$5 per outstanding share as of April 30th was approved by Empresas CMPC’s Shareholders. This dividend was paid on May 7th, 2014. New Tissue Machine for the Altamira Mill: In March 2014 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 require a total investment of US$160 million. As a consequence, CMPC’s installed capacity in Mexico will reach 135 Th. tons becoming the second largest market for CMPC. CMPC’s 1st Investor Day: On April 24th, Empresas CMPC celebrated its 1st Investor Day with approximately 50 participants. The day included a visit to the Talagante Tissue mill and individual presentations in which CMPC’s executives discussed the strategies of the Pulp and Tissue businesses, as well as the current industry environment. CMPC’s CFO referred to our current financial panorama and the CEO closed the event by talking about the four challenges that CMPC has over the next 12 months: successful execution of the Company’s investment program, focusing on cost control and enhancing efficiency, maintaining a balanced capital structure, and consolidating CMPC’s culture among all business divisions and countries.
15
CAPITAL MARKETS Equity
Average price during the quarter was CLP$1,272 compared to CLP$1,432 in 4Q13. Average daily volume traded was 1.8 million shares, compared to 1.2 million shares in 4Q13. Average daily financial volume was CLP$2,314 million.
CL P$
Price Evolution 1,500 1,450 1,400 1,350 1,300 1,250 1,200 1,150 1,100 1,050 1,000
Source: Bloomberg
Fixed Income
International Bonds
Yield % ( 1 ) Currency 1Q13 4Q13 1Q14 CMPC 2018 US$ 3.5 3.3 3.2 CMPC 2019 US$ 3.9 4.2 3.9 CMPC 2022 US$ 4.2 5.2 4.9 CMPC 2023 US$ 5.2 5.0
QoQ -5% -5% -4% -4%
YoY -5% 8% 23% -
Source: Bloomberg
Local bonds in Chile
Yield % ( 1 ) BCMPC - A BCMPC - B BCMPC - D BCMPC - F
Currency 1Q13 UF UF UF UF
Source: Bolsa de Comercio de Santiago (1) Average Mid Yield to Maturity
3.8 4.1 3.8 3.9
4Q13 3.2 3.8 4.0 3.7
1Q14 2.9 4.2 2.5 3.6
QoQ
YoY
-10% 10% -37% -3%
-15% -7% 5% -5% 16
BALANCE SHEET 2013 Figures in Th. US$*
C urrent Assets Cash and Cash Equivalents Operative Receivables Inventories Biological Assets Tax Assets Other Current Assets
1 Q1 3
2 Q1 3
2014 3 Q1 3
4 Q1 3
1 Q1 4
1 Q1 4 QoQ
YoY
-5 % -4% 1% 0% 0% -18% -57%
-2 % 104% -2% -5% 7% -40% -81%
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
3 ,3 1 4 ,1 1 8 886,948 923,101 1,060,244 252,634 101,020 90,171
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 ,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
1 0 ,8 5 6 ,8 0 5 14,464 132,412 6,959,615 3,309,836 44,933 395,545
1% -3% 0% 2% 0% -2% 2%
1% -3% -7% 6% 0% -78% -17%
TOTAL ASSETS
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
1 4 ,1 7 0 ,9 2 3
0%
1%
C urrent Liabilities Other Financial Liabilities Operative Liabilities Other Current Liabilities
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
1 ,2 3 1 ,8 9 8 518,149 583,940 129,809
8% 37% -10% 15%
-2 7 % -42% -10% -14%
Non C urrent Liabilities Other Financial Liabilities Deferred Tax Liabilities Other Non Current Liabilities
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
4 ,5 5 7 ,6 5 4 3,410,827 1,025,825 121,002
-4 % -5% 0% -1%
5% 10% -6% -14%
4 ,8 0 1
4 ,3 5 7
4 ,3 8 3
4 ,2 4 5
4 ,1 4 3
-2 %
-1 4 %
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
8 ,3 7 7 ,2 2 8
1%
4%
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
1 4 ,1 7 0 ,9 2 3
0%
1%
Non C ontrolling Participations Equity Attributable to the Owners of the C ontroller TOTAL LIABILITIES & SHAREHOLD ERS' EQUITY
* Balance Sheet numbers are based on CMPC's quarterly financial data, which is presented to the "Superintendencia de Valores y Seguros" (SVS) .
17
INCOME STATEMENT 2013 1 Q1 3
Figures in Th. US$
Sales
2 Q1 3
2014 3 Q1 3
4 Q1 3
1 Q1 4
1 Q1 4 QoQ
YoY
1,193,670
1,290,776 1,230,528
1,259,485
1,179,044
-6%
-1%
(819,774)
(870,932) (794,907)
(826,165)
(769,141)
-7%
-6%
Operating Margin
3 7 3 ,8 9 6
4 1 9 ,8 4 4 4 3 5 ,6 2 1
4 3 3 ,3 2 0
4 0 9 ,9 0 3
-5%
10%
Other Operating Expenses(2)
(161,715)
(180,781) (177,196)
(179,129)
(159,788)
-11%
-1%
EBITD A ( 3) EBITDA Margin (%)
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 5 0 ,1 1 5 21%
-2 % 1%
18% 3%
Depreciation, Amortizations and Stumpage Increase in Biological Assets due to Forests Growth and Price Effects Decrease in Biological Assets due to Harvest
(105,380) 51,903 (46,134)
(106,200) (105,773) 51,904 51,114 (51,812) (56,155)
(107,770) 53,019 (57,909)
(103,667) 47,325 (49,288)
-4% -11% -15%
-2% -9% 7%
Operating Income
1 1 2 ,5 7 0
1 3 2 ,9 5 5 1 4 7 ,6 1 1
1 4 1 ,5 3 1
1 4 4 ,4 8 5
2%
28%
Operating Costs
(1)
Financial Expenses Financial Income Share Results in Associated Companies Foreign Exchange Difference Indexation Unit Results Other Gains (Losses) Income Taxes
(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)
(43,615) 4,604 (35) 20,193 (10,259) (20,616) (48,338)
-4% -12% -102% -5% 15% 13644% -38%
5% -26% -101% -250% 910% -241% -1216%
Net Income
8 4 ,3 1 5
3 0 ,5 6 6
4 3 ,2 9 2
3 7 ,4 6 0
4 6 ,4 1 9
24%
-4 5 %
(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
18
CASH FLOW STATEMENT 2013 F igures in Th. US C ash F low from Operating Activities
1 Q1 3
2 Q1 3
3 Q1 3
2 2 1 ,0 7 1
1 8 5 ,3 5 3
-1 6 %
14%
1,363,551 69,422
1,420,809 59,293
1,396,521 57,723
1,412,810 55,993
1,300,527 56,454
-8% 1%
-5% -19%
(1,044,892) (1,051,700) (158,368) (139,983) (64) (415) (43,420) (41,795) 2 3 3 ,3 5 8 2 2 0 ,3 5 1 (15,059) 6,481 0 0
(1,138,430) (24,246) (25,051) (46,711) 2 3 4 ,3 6 5 (13,294) 0 0 (1 1 8 ,3 2 4 )
(999,610) (106,504) (114) (51,529) 1 9 9 ,2 2 4 (13,871) 0
-12% 339% -100% 10% -1 5 % 4% -
-8% -8% -89% 3% 8% -34% -
C ash F low from Investment Activities
(1 3 6 ,0 7 6 )
(8 6 ,6 8 2 )
(2 0 1 ,9 5 1 )
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
C ash F low from F inancing Activities
(2 8 ,3 8 1 )
4 6 1 ,7 5 1
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)
0 156,957 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)
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
YoY
2 2 6 ,8 3 2
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)
Net increase (decrease) in cash and cash equivalents
1 Q1 4 QoQ
2 1 8 ,2 9 9
(1,082,802) (115,162) (1,062) (49,901) 1 8 4 ,0 4 6 (21,081) 0
Net increase (decrease) in cash and cash equivalents before effect of exchanges rate change
2014 1 Q1 4
1 6 2 ,9 6 5
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)
Effects of variation in the exchange rate on cash and cash equivalents
4 Q1 3
(1 ,4 9 2 ) 4,017 2 ,5 2 5
5 9 3 ,3 6 8 (15,116) 5 7 8 ,2 5 2
431,242
433,767
4 3 3 ,7 6 7
1 ,0 1 2 ,0 1 9
310,475
185,161
7 4 4 ,2 4 2
1 ,1 9 7 ,1 8 0
(1 9 9 ,0 4 1 ) 134,787 0 1 3 4 ,7 8 7 0 (272,619) (22,869) (38,340) 0 (1 7 4 ,1 6 0 ) (3,892) (1 7 8 ,0 5 2 )
(2 3 2 ,2 7 3 )
96%
71%
105,746 (55) 2,497 (252,822) 348 (15,011) (38,213) 17,573 0 5,521 56,092 0 2 ,3 6 6
0 0 267 (307,766) 1,731 (11,649) (35,532) 22,739 0 4,336 93,601
-1 0 0 % -100% -89% 22% 397% -22% -7% 29% -21% 67%
136% 39% -16% 500% 1078% -30% 1791%
1 6 ,1 4 7
582%
-1 5 7 %
(107,183) 221,732 1 1 4 ,5 4 9 23,273 (64,958) (22,086) (48,412) 0 0 1 0 5 ,1 1 3 0 (11,831)
40,085 199,088 2 3 9 ,1 7 3 0 (185,857) (37) (37,132) 0
-137% -10% 109% -100% 186% -100% -23% -
27% 52% 27% -53% -5% -
(3 0 ,7 7 3 )
-1 2 9 %
1963%
(9,528)
-19%
-337%
(4 0 ,3 0 1 )
-1 4 3 %
-1 6 9 6 %
9 3 ,2 8 2 0 1,012,019 833,967 0 8 3 3 ,9 6 7 9 2 7 ,2 4 9 0 158,789 95,9960 0 9 9 2 ,7 5 6 1 ,0 2 3 ,2 4 5
927,249
11%
115%
8 8 6 ,9 4 8
-4 %
104%
0
-100%
-100%
8 8 6 ,9 4 8
-1 3 %
19%
19