2008-2Q08-Empresas-CMPCs-Press-Release

Page 1

Francisca Manuschevich fmanuschevich@gerencia.cmpc.cl (56-2) 441 2867 Trinidad Valdés mtvaldes@gerencia.cmpc.cl (56-2) 441 2713

EMPRESAS CMPC S.A.

2nd Quarter 2008 Results (2Q08) August 7th, 2008

During the second quarter of 2008, the forestry business registered an increase in its value added products sales, such as remanufactured wood and plywood. The tissue business also registered an increase in its sales, due to the startup of the new issue machines in Argentina and Peru. During this quarter, the Chilean peso showed a 20% depreciation against the US dollar. The inflation index reached 2.4% during the same period.

CMPC’s consolidated sales for 2Q08 reached US$925 million, registering a 7% increase when compared to 1Q08. During this quarter, there were higher volumes and sale prices in all the divisions; except Paper and Paper Products, which registered a decrease in volumes and sale prices. The average pulp price showed a 4% increase during the quarter.

EBITDA during 2Q08 reached US$244 million, showing a 10% increase when compared to that of 1Q08. This higher EBITDA is mainly explained by an increase in consolidated sales. On the other hand, costs of raw materials, fuels and transportation continued to be high. The EBITDA margin reached 26%, showing no variations when compared to the previous quarter.

FINANCIAL REPORT

Net Income in 2Q08 amounted to US$109 million; 11% lower than that of the 1Q08. This increase is due to a higher tax provision, and a lower result from price level restatement, due to the depreciation of the peso.

CMPC’s net debt as of the end of 2Q08 stood at US$1,380 million, decreasing US$94 million during the last quarter mainly due to the cash generated during the quarter.

During this quarter, a new tissue paper machine started operations in Peru. In June, the Company subscribed a syndicated loan for US$250 million. Financial Highlights In millio n USD (1) % Change

Sales EBITDA Depreciation & Stumpage Net Income Net Debt Net Debt / Capitalization Market Capitalizatio n (2) Closing exchange rate

www.cmpc.cl Conference Call: Friday, August 8th 12:00 PM ET US Toll Free: 1.888.339.2688 International dial: (1 617) 847.3007 Password: 706 681 06

(1)

2Q0 7 73 1 21 3 (76) 12 5 1.42 8 23,0% 7.40 2 526,8 6

1Q08 865 222 (91) 123 1.474 18,5% 8.311 437,71

2Q08 925 244 (89) 109 1 .380 19,2% 6 .094 52 6,05

QoQ

YoY

7%

26%

10%

15%

-3%

16%

-11%

-13%

-6%

-3%

1%

-4%

-27%

-18%

20%

0%

Figures in USD million. Income Statement and Cash Flow Statement figures have been translated according to quarterly average exchange rate. Balance Sheet’s figures have been translated according to the closing exchange rate as of the (2) end of each quarter. This criteria has been adopted starting 1Q05, since in CMPC’s opinion, this criteria reflects the Company’s results in a better way. (2) As of the end of each quarter.


INCOME STATEMENT ANALYSIS

Net Income for 2Q08 reached US$109 million, 11% lower than the previous quarter. Despite the fact that during this quarter there was an increase in the EBITDA, this increase was offset by a lower result from price level restatement and the increase in non-operational expenditures, especially by a higher tax provision. (Figure 1).

Figure 1: Net Income Analysis In USD million

2

22

150

2 130

123 21

109

110

16 90

70

50 Net Income 1Q08

Total revenues reached US$925 million, registering a 7% increase compared to the previous quarter, and 26% higher than the same period of the last year.

Empresas CMPC – 2Q08 Report

∆ Dep reciatio n

∆ Financial Exp .

∆ Other No n Op erating

∆ Price Level Net Income 2Q08 Res tatement

Figure 2: Sales Breakdown Analysis to Third Parties (Price & Quantity Effect) In USD million +16

1000

+29

-13

+42

-15 29

950 1

28 900

During 2Q08 the Forestry, Pulp and Tissue divisions showed higher prices. On the other hand, there were increases in the Forestry and Pulp volumes. The Tissue division also presented higher volumes, because of the startup of new tissue machines in Argentina and Peru. The Paper division saw a decrease in the corrugating paper volumes, whereas the Paper products division also registered lower volumes, both explained by the seasonality of the fruit industry and the contraction of the Chilean industrial market. (Figure 2).

∆ EBITDA

865

14

13 7

2

925 11

4

5

850 800

750 Q = Volume

700

P = Price

650 Total Sales 1Q08

Forest

Pulp

Papers

Tissue

Paper Products

Total Sales 2Q08

2


Income Statement ANALYSIS The Forestry and solid wood business registered a 15% increase in sales (US$+16 million) during this period, mainly due to an increment in sale prices. The total sales volume increased 2%, due to the increase in value added products such as plywood (+15%) and remanufactured wood (+19%). Sawing logs and pulpwood volumes also increased, although on a smaller proportion. This was partially offset by a reduction in sawnwood volumes (-7%). The timber exports to North America showed a slight recovery during the current quarter, which starts to reverse the decline recorded in U.S. demand in the recent months, due to the subprime crisis. The average sale price registered a positive variation (+13%) compared with the previous quarter. This was primarily because the value added products increased their participation in the solid wood product mix. Pulp sales increased 10% (US$+29 million) during 2Q08 compared to 1Q08, due to an increase in the volumes of both fibers. Hardwood volumes increased 15%, while the softwood volumes increased 2%. These higher volumes are explained by the recovery during this quarter of part of the shipments that could not be dispatched during the previous quarter. The average pulp price showed a 4% increase when compared to 1Q08, reaching CIF 753 US$/ton and CIF 739 US$/ton for softwood and hardwood respectively. During this period, the spread between both fibers reached 14 US$/ton. Paper business during 2Q08 registered a 7% decrease (US$-13 million) in its consolidated sales compared to 1Q08, explained mainly by lower prices and volumes. A breakdown of the different paper grades in this business shows that Newsprint volumes registered a 6% increase during this quarter, explained by higher production due to the recovery of its factory production capacity. On the other hand, prices increased 1%, following the rises in the foreign markets. Boxboard average sale price registered a 0,5% increment. Meanwhile, sales volume increased by 2%, despite the problems generated by the strike in May at the Port of San Antonio. Finally, Packaging paper showed a 42% reduction in volumes, this is due to a lower demand mainly explained by the seasonality of the fruit business, the decrease of industrial activity in Chile and inventory adjustments during this quarter. The average price of packaging paper decrease 3% compared to the previous quarter. Tissue business, including operations in Chile, Argentina, Peru, Uruguay, Brazil, Mexico and Colombia showed a 20% increase in sales (US$+42 million) during the 2Q08, explained by higher prices and volumes in both, tissue paper and diapers and Feminine Care Products. The increase in volumes is mainly due to higher production of foreign subsidiaries, highlighting the additional volumes generated by the new machines in Argentina and Peru. The tissue paper, diapers and Feminine Care Products increased their volumes in 6%. On the other hand, the average sale price increased 14%, mainly due to price increases in some of the markets and foreign currency translation of the off-shore subsidiaries Paper products business during 2Q08 registered a 15% decrease (US$-15 million) in sales compared to 1Q08. This decrease is mainly attributable to lower sale volumes (-11%), especially in corrugated boxes (-26%) and moulded pulp trays (26%) explained by the proper seasonality of this business (fruit export season in Chile) and a lower industrial activity. The average sale price decreased 4%. Empresas CMPC – 2Q08 Report

3


Income Statement ANALYSIS

A breakdown of CMPC’s sales to third parties by destination during 2Q08 shows that 53% of the sales corresponded to exports, 26% to the domestic market in Chile and 21% to domestic markets from foreign subsidiaries. (Figure 3)

Figure 3: Sales to Third Parties Breakdown by Destination Based in USD sales

Export Sales 53%

Domestic Sales from Foreign Subsidiaries 21%

Domestic Sales in Chile 26%

CMPC’s sales breakdown to third parties by business for 2Q08 shows that the Pulp business contributed with 34% of total revenues, followed by Tissue and Paper contributing with 27% and 17% of total sales respectively. Finally, Forestry and Paper Products’ businesses represented 13% and 9% of total revenues respectively. (Figure 4)

Figure 4: Sales to Third Parties Breakdown by Business In USD million 100%

9%

11%

80%

19%

19%

60%

23%

24%

9% 17%

Paper products Papers Tissue

27%

Pulp Forestry

40% 35%

34%

34%

14%

12%

13%

2Q07

1Q08

2Q08

20%

0%

Empresas CMPC – 2Q08 Report

4


Income Statement ANALYSIS

Costs of goods sold excluding depreciation amounted to US$514 million, 7% above than those of 1Q08. The rise in costs is mainly explained by the growth in the Company’s total sales. Additionally, there were increases in energy, transportation and production costs due to higher prices of oil and its derivatives. At the same time, the prices of certain raw materials have continued high; such as timber, chemicals and recycled paper cuttings. At a consolidated level, CMPC has translated the higher operating costs to higher prices. Costs of goods sold in 2Q08 were 56% of total sales, which represents the same percentage of the previous quarter. Sales, General and Administrative expenses increased 4% when compared with expenses during 1Q08 closing at US$166 million. The SG&A expenses represented 18% of total sales. CMPC’s consolidated EBITDA reached US$244 million, 10% higher than EBITDA in the 1Q08. Higher EBITDA is mainly explained by the higher EBITDA in the Forestry and Pulp business. (Figure 5)

Figure 5: EBITDA Variation by Business In USD million 270

11 21

250 230

244 4

222

1

4

210 190 170 150 130 110 90 70 50 EB ITDA 1Q08

Empresas CMPC – 2Q08 Report

Forest

P ulp

Papers

Tissue

P aper Products

E BITDA 2Q08

5


Income Statement ANALYSIS

Figure 6: EBITDA Breakdown by Business

Higher EBITDA in the Forestry division is mainly explained by the higher sales of value added products. The increase in EBITDA in the Pulp division is due to the rise in volumes registered during the quarter; whereas in the case of Tissue, the decline was due to exchange rate effects, specifically by the appreciation of the dollar in the last quarter. On the other hand, the decrease in EBITDA in the Paper division is mainly due to a decrease in sales and some costs pressures (especially in boxboard) related to the higher cost of wood, pulp and fuels. Finally, the decrease in the Paper Products’ EBITDA is due the lesser industrial activity in Chile and the seasonal decrease in sales. (Figures 5 and 6).

In USD million 240 220 200 180 160

13

8 27

34

31

29

25

30

7

Paper products Papers Tissue

140 Pulp

120 100 80

148 117

Forestry

137

60 40 20

28

0

2Q07

32 11

1Q08

2Q08

Financial expenses during 2Q08 increased 8% compared to 1Q08, amounting to US$19.9 million. This increase is mainly due to the structuring costs of the syndicated loan subscribed during the quarter. The average cost of debt for 2Q08 was 4.3%, decreasing 0.2% when compared to the previous quarter. Interest coverage ratios such as EBITDA/Financial Expenses and Average Debt/EBITDA reached levels of 12.28 and 1.95 times respectively, considering the last twelve months. Price Level Restatement and FX Differences resulted in a net gain of US$10.8 million during the 2Q08. Income Tax in 2Q08 was US$42.6 million. The effective tax rate for the year comes to 20%.

Empresas CMPC – 2Q08 Report

6


Income Statement ANALYSIS

Current assets increased 8% in dollars when compared to the previous quarter. This rise was mainly explained by higher cash and marketable securities, because of the subscription of the syndicated loan. As of the end of 1Q08, 26% of cash and marketable securities were denominated in Chilean pesos, 73% in US dollars, and the balance mainly in euros and other currencies.

Fixed assets decreased 15% in dollars from the end of 1Q08, mainly due to the effect of the depreciation of the Chilean peso. Current liabilities as of the end of 2Q08 decrease 10% when compared to 1Q08. The decrease in the short term finantial liablities is mainly explained by the subscription of a US$ 250 million syndicated loan, which pretends to switch shortterm debt to long-term debt. Long term liabilities were up 10% during 2Q08. This is explained by the syndicated loan subscribed during the quarter. Total CMPC debt reached US$1,851 million as of the end of 2Q08, 7% above than that of the previous quarter. As of the end of 2Q08, 59% of CMPC´s debt was denominated in USD, 34% was denominated in Chilean pesos (or Unidades de Fomento) and the balance in Mexican pesos and other currencies.

Debt breakdown In millionUSD Short term debt

% Change

1Q07

4Q07

1Q08

QoQ

YoY

192,1

318,4

256,8

-19%

34%

58,6

285,8

288,0

1%

392%

Long term debt

1.301,6

1.124,0

1.306,2

16%

0%

Total debt

1.552,3

1.728,2

1.851,1

7%

19%

124,2

253,9

471,1

86%

279%

1.428,1

1.474,3

1.379,9

-6%

-3%

4,9%

4,5%

4,3%

-0,2%

-0,6%

Short term portion of long term debt

Cash & cash equivalents Net debt Average cost of debt

Total Shareholder’s Equity as of the end of 2Q08 was US$5,404 million, 15% lower than that of 1Q08. This rise is mainly attributable to the depreciation of the Chilean peso during the quarter. During 2Q08, the company paid a total amount of US$ 89.6 million in dividends, 27% higher than the last dividend paid in January.

Empresas CMPC – 2Q08 Report

7


Exhibit 1a: Consolidated Income Statement (1) Consolidated Income Statement

(1)

2007 Million of US$ Dollars as of the End of Each Quarter Exchange rate

Sales COGS without depreciation and stumpage % costs/sales

SG&A

(1)

% expenses/sales

EBITDA % EBITDA/sales

Depreciation & Stumpage Operating Income Financial Income Financial Expenses (EBITDA + F. Incom e)/F. Expenses (tim es)

Other Non-Operational Income / (Expenses) Price Level Restatement Income Taxes Minority Interest Net Income % Incom e/sales

2008

1Q

2Q

3Q

4Q

1Q

2Q

541,26

525,97

518,55

498,47

452,33

489,03

2Q 08

3Q

4Q

% YoY

8%

-7%

666,2

731,2

787,4

791,0

864,8

924,5

7%

26%

(350,5)

(382,1)

(407,2)

(423,9)

(482,9)

(514,4)

53%

52%

52%

54%

56%

56%

7% 0%

35% 3%

(125,0)

(136,4)

(141,7)

(156,5)

(159,9)

(166,0)

19%

19%

18%

20%

18%

18%

4% -1%

22% -1%

190,6

212,7

238,6

210,6

222,0

244,1

29%

29%

30%

27%

26%

26%

10% 1%

15% -3%

(68,6)

(76,2)

(79,8)

(84,5)

(91,1)

(88,6)

-3%

16%

19%

14%

73%

177%

8% 0,3 x

1% 1,6 x

-190%

224%

-59%

-66%

122,0

136,5

158,9

126,1

130,9

155,5

1,7 (18,5)

1,6 (19,7)

2,1 (19,3)

2,3 (16,7)

2,6 (18,3)

4,6 (19,9)

10,4 x

10,9 x

12,5 x

12,8 x

12,3 x

12,5 x

1,7 (9,1) (19,3) (1,5) 77,0

1,0 31,9 (25,1) (0,7) 125,5

(0,1) 37,4 (30,4) (1,0) 147,6

(5,0) 30,6 (22,6) (0,7) 114,0

(3,7) 26,3 (15,4) 0,3 122,9

3,3 10,8 (42,6) (2,7) 109,0

12%

17%

19%

14%

14%

12%

Notes (1)

%Q oQ

Figures are based on the quarterly consolidated financial statements of Empresas CMPC S.A. filed in the "Superintendencia de Valores y Seguros" (SVS), and are denominated in millions of US Dollars as follows: Value TUS$ =[ FECU Value T - FECU Value T-1 * (1+ CPI) quarter ] / Average Exchange Rate

177%

70%

-965%

267%

-11% -2%

-13% -5%


Exhibit 1b: Consolidated Income Statement

Consolidated Income Statement 2007 Million of Ch Pesos as of the End of Each Quarter

Sales COGS without depreciation and stumpage % costs/sales

SG&A % expenses/sales

EBITDA

2008 1Q

2Q

2Q 08

1Q

2Q

3Q

4Q

361.958

383.933

414.176

395.532

404.247

420.288

4%

9%

(190.438) (200.611) (214.160) (211.955)

4% 0%

17% 3%

1% -1%

5% -1%

(225.714)

(233.847)

54%

56%

56%

(67.939) (71.639) (74.507) (78.264)

53%

52%

52%

(74.749)

(75.473)

20%

18%

18%

103.580 111.684 125.509 105.313

19%

19%

18%

3Q

4Q

%Q oQ

% YoY

103.784

110.967

27%

26%

26%

7% 1%

-1% -3%

Depreciation & Stumpage

(37.289) (40.020) (41.948) (42.249)

(42.577)

(40.284)

-5%

1%

Operating Income

66.291

61.208

70.682

15%

-1%

Financial Income Financial Expenses

896 865 1.104 (10.062) (10.352) (10.166)

68%

140%

5% 0,3 x

-13% 1,6 x

-188%

180%

-60%

-71%

% EBITDA/sales

(EBITDA + F. Income)/F. Expenses (times)

Other Non-Operational Income / (Expenses) Price Level Restatement Income Taxes Minority Interest Net Income % Income/sales

29%

29%

71.664

30%

83.562

63.064 1.154 (8.350)

1.231 (8.569)

2.073 (9.034)

12,8 x

12,3 x

12,5 x

915 536 (38) (2.516) (4.920) 16.731 19.689 15.303 (10.465) (13.169) (15.978) (11.289) (814) (383) (516) (348) 41.843 65.892 77.657 57.017

(1.711) 12.316 (7.192) 145 57.427

1.504 4.895 (19.360) (1.219) 49.541

14%

12%

10,4 x

12%

10,9 x

17%

12,5 x

19%

14%

169%

47%

-942%

218%

-14% -2%

-25% -5%


Exhibit 2a: Consolidated Balance Sheet Consolidated Balance Sheet 2007

2008

1Q

2Q

3Q

4Q

1Q

539,21

526,86

511,23

496,89

437,71

Current Assets Cash and Marketable Securities Accounts Receivable Sundry Debtors Inventories Other Current Assets

1.454,4 1.426,9 1.536,6 1.604,3 159,6 124,2 177,4 167,1 531,9 542,8 566,9 583,8 56,6 43,1 48,1 58,5 654,5 664,1 685,2 725,7 51,8 52,6 58,9 69,2

1.895,0 253,9 663,5 64,1 834,2 79,3

2.051,6 471,1 645,3 52,9 800,2 82,1

Fixed Assets (Net)

5.189,1 5.360,1 5.662,6 6.088,4

6.866,3

234,9

6.823,6 6.969,9 7.422,1 7.927,6

Million of US$ Dollars as of the End of Each Quarter

Other Assets TOTAL ASSETS Current Liabilities Short Term Financial Liabilities Long Term Financial Liabilities - Short Term Portion Accounts Payable Provisions and Withholdings Other Current Liabilities Long Term Liabilities Liabilities to Banks and Financial Institutions Bonds Issued Notes Payable and Sundry Creditors (denominated in US Dollars) Other Long Term Liabilities Minority Interest

180,1

715,9 246,6 100,4 318,1 49,7 1,0

183,0

594,6 192,1 58,6 287,1 55,3 1,6

223,0

750,2 206,5 176,5 294,1 66,1 7,0

811,5 168,6 167,5 402,1 69,2 4,0

1.498,6 1.541,3 1.486,8 1.503,2 618,1 631,7 515,5 493,8 674,8 688,8 712,7 734,4 8,2 5,6 5,6 4,0 197,4 215,2 253,0 271,0 121,1

118,4

125,2

2Q 526,05

2Q08 3Q

4Q

QoQ 20%

YoY 0%

8%

44%

86%

279%

-3%

19%

-17%

23%

-4%

20%

4%

56%

5.841,4

-15%

9%

294,4

259,3

-12%

42%

9.055,6

8.152,3

-10%

17%

-10%

61%

1.063,0 318,4 285,8 373,2 64,0 21,7 1.513,3 381,3 798,2 4,0 329,8

959,7 259,4 288,0 360,1 52,1 0,0 1.657,1 635,2 723,5 0,0 298,4

-19%

35%

1%

392%

-3%

25%

-18%

-6%

-100%

-100%

10%

8%

67%

1%

-9%

5%

-100%

-100%

-10%

39%

139,0

156,9

131,1

-16%

11%

Shareholders' Equity

4.488,0 4.715,6 5.059,9 5.474,0

6.322,4

5.404,4

-15%

15%

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

6.823,6 6.969,9 7.422,1 7.927,6

9.055,6

8.152,3

-10%

17%

Note: Figures on the Balance Sheet are based on quarterly FECUs of Empresas CMPC S.A. And are in USD million as of the end of each quarter.


Exhibit 2b: Consolidated Balance Sheet Consolidated Balance Sheet 2007 Million of Ch Pesos as of the End of Each Quarter

Current Assets Cash and Marketable Securities Accounts Receivable Sundry Debtors Inventories Other Current Assets

1Q

2Q

2008 3Q

2Q

751.752 65.444 285.980 22.727 349.909 27.691

2.798.015

2.824.027

97.119

96.401

3.679.341

3.672.179

Current Liabilities Short Term Financial Liabilities Long Term Financial Liabilities - Short Term Portion Accounts Payable Provisions and Withholdings Other Current Liabilities

386.026 132.982 54.145 171.544 26.826 530

313.292 101.213 30.869 151.270 29.118 821

383.535 105.590 90.246 150.333 33.771 3.595

403.227 83.770 83.246 199.805 34.408 1.997

465.307 139.379 125.079 163.343 27.996 9510

503.484 135.069 151.527 189.456 27.432 0

Long Term Liabilities Liabilities to Banks and Financial Institutions Bonds Issued Notes Payable and Sundry Creditors (in US Dollars) Other Long Term Liabilities

808.043 333.298 363.866 4.413 106.466

812.055 332.802 362.924 2.932 113.396

760.097 263.560 364.337 2.851 129.349

746.908 245.353 364.916 1.964 134.674

662.374 166.882 349.361 1.758 144.374

873.860 335.530 380.595 0 157.735

65.305

62.368

64.003

69.048

68.695

Shareholders' Equity

2.419.965

2.484.465

2.586.755 2.719.955

TOTAL LIABILITIES AND EQUITY

3.679.341

3.672.179

3.794.389 3.939.138

Other Assets TOTAL ASSETS

Minority Interest

797.137 83.025 290.072 29.070 360.571 34.398

1Q

784.206 86.075 286.823 30.497 352.889 27.923

Fixed Assets (Net)

785.542 90.675 289.837 24.612 350.303 30.114

4Q

2.894.868 3.025.260

829.441 1.080.022 111.129 247.827 290.418 339.470 28.047 27.836 365.138 420.926 34.708 43.963

2Q08 3Q

4Q

QoQ

YoY

30%

44%

123%

279%

17%

19%

-1%

22%

15%

20%

27%

59%

3.005.452

3.072.869

2%

9%

116.742

128.845

136.404

6%

41%

3.794.389 3.939.138

3.963.738

4.289.296

8%

17%

8%

61%

113.980

-3%

33%

21%

391%

16%

25%

-2%

-6%

-100%

-100%

32%

8%

101%

1%

9%

5%

-100%

-100%

9%

39%

68.983

0%

11%

2.767.363

2.842.969

3%

14%

3.963.738

4.289.296

8%

17%


Exhibit 3: Consolidated Cash Flow Statement Cash Flow Statement

(1) 2Q 08

Millions of US$ Dollars as of the End of Each Quarter

2Q07

1Q08

2Q08

%Q oQ

% YoY

Exchange Rate

525,97

452,33

489,03

8%

Cash flows from operating activities

180,6

89,2

194,0

117%

7%

109,0

-11%

-13%

-890%

267% 77% -8%

Net income

-7%

125,5

122,9

Profit on sale of fixed assets

(0,0)

0,0

(0,2)

Charges not representing movement of funds

43,0

67,4

75,9

13%

(60,0)

(78,2)

(55,2)

-29%

71,5

(22,6)

61,8

-373%

-14%

0,7

(0,3)

2,7

-965%

267%

Changes in assets which affect cash flows Changes in liabilities which affect cash flows Minority interest Cash flows from financing activities Loans received Bonds issued Payment of dividends Payment of loans

(116,2)

64,2

115,0

79%

-199%

208,5

347,3

401,6

16%

93%

0,0

0,0

0,0

0%

0%

(40,3)

(70,6)

(96,1)

36%

138%

(293,3)

(212,5)

(190,4)

-10%

-35%

Payment of bonds

0,0

0,0

0,0

0%

0%

Payment of bonds assuance costs

0,0

0,0

0,0

0%

0%

Cash flows from investment activities Proceeds from sale of fixed assets Other income of investments Capital expenditures Permanent investments Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

(106,1) 0,0 0,0

(72,7) 0,0

(76,9)

6%

-28%

(0,0)

0%

-101%

0,0

0,0

0%

0%

(67,9)

(68,8)

1%

-35%

0,0

0,0

0,0

0%

0%

(42,0)

60,7

274,1

352%

-753%

0,1

185,0

-100%

-123%

(41,8)

245,7

12%

-755%

(106,1)

(0,0) 274,1

Notes (1)

Figures are based on the quarterly consolidated financial statements of Empresas CMPC S.A. filed in the "Superintendencia de Valores y Seguros" (SVS), and are denominated in millions of US Dollars as follows: Value TUS$ =[ FECU Value T - FECU Value T-1 * (1+ CPI) quarter ] / Average Exchange Rate


Exhibit 4: Sale Volumes Volumes Domestic

2Q 2008 vs 1Q 2008

Exports

Total Sales

QoQ

Domestic Markets (1) Forestry and Wood Products

(Th. m3ssc)

Sawnwood & Plywood

1Q08

2Q08

1Q08

2Q08

1Q08

2Q08

653,3

672,7

215,0

212,4

868,3

885,1

2%

67,5

62,3

181,9

172,1

249,4

234,3

-6%

Pulp

(Th. Tons)

5,4

4,7

382,4

420,7

387,8

425,4

10%

Tissue Products (2)

(Th. Tons)

71,2

76,4

0,8

0,8

72,0

77,2

7%

Paper, Boxboard and Newsprint Boxboard Newsprint Converted Products

(Th. Tons)

82,7 12,7 13,3 74,3 59,7

74,0 15,0 14,3 61,6 42,5

105,0 66,8 33,0 5,2 2,0

106,1 66,3 34,7 8,3 4,1

187,7 79,5 46,2 79,5 61,7

180,1 81,3 49,0 69,9 46,6

-4% 2% 6% -12% -24%

(Th. Tons)

Corrugated Boxes (1) (2)

Considers Chile and Foreign Subsidiaries Excluding sales of diapers and feminine care products.

Volumes Domestic

2Q 2008 vs 2Q 2007

Exports

Domestic Markets Forestry and Wood Products

(Th. m3ssc)

Sawnwood & Plywood Pulp Tissue Products

(2)

Paper, Boxboard and Newsprint Boxboard Newsprint Converted Products

(2)

YoY

2Q07

2Q08

2Q07

2Q08

2Q07

2Q08

798,6

672,7

237,2

212,4

1.035,8

885,1

-15%

71,8

62,3

195,1

172,1

266,9

234,3

-12%

(Th. Tons)

5,2

4,7

382,3

420,7

387,5

425,4

10%

(Th. Tons)

67,3

76,4

1,6

0,8

68,9

77,2

12%

(Th. Tons)

70,9 13,3 13,7 56,7 45,8

74,0 15,0 14,3 61,6 42,5

101,0 60,2 35,8 7,8 3,8

106,1 66,3 34,7 8,3 4,1

171,9 73,5 49,5 64,5 49,6

180,1 81,3 49,0 69,9 46,6

5% 11% -1% 8% -6%

(Th. Tons)

Corrugated Boxes (1)

Total Sales

(1)

Considers Chile and Foreign Subsidiaries Excluding sales of diapers and feminine care products.

This document provides selected general financial information about Empresas CMPC S.A. It is not a complete description of the financial condition or results of operation of the company. For additional information about the company we urge you to review the annual consolidated financial statements and corresponding notes (which are an integral part thereof) filed by Empresas CMPC S.A. with the Superintendency of Securities and Insurance of Chile [Superintendencia de Valores y Seguros, Chile] in accordance with applicable laws and regulations. You may obtain copies of these financial statements on our website at www.cmpc.cl on the investors section.


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