2011-2Q11-Empresas-CMPCs-Press-Release

Page 1

Empresas CMPC S.A. Second Quarter 2011 Results th August 10 , 2011

2Q11

New Tissue paper machine, Caieiras Brazil – start up June 2011

2Q11 in Brief

2

Income Statement Analysis

3

Balance Sheet Analysis

7

Relevant Events

8

Balance Sheet

9

Income Statement

10

Cash Flow Statement

11

Sale Volumes

12

In the 90’s, CMPC began an internationalization process, which has been accelerating during the recent years. 91 years after its establishment, CMPC operates in 8 countries, generating over 15,000 direct jobs, contributing with the development of the communities where the Company operates, satisfying the needs of more than 20,000 direct customers in 50 countries. All the above confirms CMPC’s long term business vision, which is focused on generating value through its traditional seal of innovation and prudence in all its business activities.

Conference Call th Date: Thursday, August 11 , 9:00 AM Eastern US Toll Free: (+1 888) 339 2688 International Dial: (+1 617) 847 3007 Password: 710 687 55


2Q11

2Q11 in Brief

During the quarter, CMPC registered a decrease in its sales and EBITDA when compared with those reached in the first quarter of the present year. This was mainly explained by lower sale volumes in the Forestry, Pulp, Papers and Paper Products business divisions. Moreover, hardwood and softwood volumes also showed a decrease due to Guaiba´s annual maintenance, delivery delays at ports in Chile during June and the need to rebuild inventories after the higher sales registered in the first quarter. Pulp prices increased by 6% and 1% for softwood and hardwood respectively.

CMPC’s consolidated sales for 2Q11 reached US$1,199 million, registering a 3% decrease when compared to those of 1Q11. During the quarter sale volumes decreased in all business areas, except for those of Tissue. On the other hand, there were higher sale prices in all divisions. Consolidated EBITDA reached US$303 million during 2Q11, showing a 4% decrease when compared to that of 1Q11. This was mainly explained by the lower level of sales and by an increase in distribution costs and administrative expenses. As a result, the EBITDA margin declined marginally from 25,5% to 25,3%. CMPC registered a Net Income of US$170 million during 2Q11, showing a 19% increment when compared to that of 1Q11. This was mainly explained by the lower Income taxes recorded during the quarter, as well as the higher revenue on biological assets. CMPC’s net debt as of the end of 2Q11 stood at US$2,362 million, presenting a US$205 million increase when compared to that as of March 31st, 2011. Total debt stood at US$3,313 million, presenting an US$21 million decrement. All the above let CMPC to close the quarter with US$950 million of cash* (*defined as: cash and cash equivalents + term deposits within 90 to 360 days of maturity).

Key Figures US$ Million

2Q10

1Q11

2Q11

Δ%Q/Q

Δ%Y/Y

FY 2010

FY 2011

Δ%Y/Y

Sales EBITDA EBITDA Margin Net Income

1.007 281 26% 123

1.242 317 26% 143

1.199 303 25% 170

-3% -4% 0% 19%

19% 8% 1% 38%

1.944 514 26% 203

2.440 620 25% 312

26% 21% -1% 53%

48

166

125

-24%

162%

292

292

0%

Total Assets Net Debt Market Capitalization

12.322 2.175 9.603

13.567 2.158 10.692

13.668 2.362 11.712

1% 9% 10%

11% 9% 22%

24.529 4.348 18.886

27.234 4.520 22.404

11% 4% 19%

Closing Exchange Rate Average Exchange Rate

547,19 530,48

479,46 481,81

468,15 469,25

-2% -3%

-14% -12%

547,19 524,84

468,15 475,58

-14% -9%

CAPEX

2

Forestry

Pulp

Papers

Tissue

Paper Products


2Q11

Income Statement Analysis

Total revenues reached US$1,199 million during the quarter, a 3% lower when compared to those of 1Q11. During the quarter, there were higher sale prices in all business areas. The Tissue business showed higher prices (measured in US dollars), mainly explained by the appreciation of local currencies. On the other hand, the higher prices on the Forestry division are explained due to increments in prices of sawnwood in the Middle East, Japan and the U.S. and increments of plywood in Europe. In terms of sale volumes, these decreased in all business divisions, except those of Tissue. Forestry volumes fell affected by the lower sales of chips and pulpwood logs. Pulp volumes were down due to the lower hardwood and softwood exports explained by delivery delays at ports in Chile, Guaiba´s annual maintenance and the need to rebuild inventories after higher sales registered on the first quarter. In the Paper business as well as in the Paper Products business, the decrease in volumes is explained by the seasonality of the fruit export business in Chile. Finally, the additional tissue volumes were mainly explained by the advance in the learning curve of the Mexican and Colombian new machines.

Sales Breakdown Analysis to Third Parties

Total Revenues Evolution

CMPC’s consolidated EBITDA reached US$303 million, 4% lower than 1Q11’s EBITDA. This decrement is mainly explained by the lower EBITDA of the Pulp, Paper and Paper Products divisions. Nevertheless, this was partly offset by an increase in the EBITDA of the Forestry and Tissue businesses.

EBITDA Variation by Business

EBITDA Evolution

Net Income during the quarter reached US$170 million, a 19% superior than that of 1Q11. This increment was mainly explained by lower expenses of profit taxes, which fell from US$63 million to US$17 million due to exchange fluctuation in the accounting conversion of our taxable assets and liabilities to dollars.

Net Income Analysis

Net Income Evolution

Forestry

Pulp

Papers

Tissue

Paper Products

33


2Q11

Income Statement Analysis Sales to Third Parties Breakdown by Destination FORESTAL

A breakdown of CMPC’s sales to third parties by destination during 2Q11 shows that 48% of the sales correspond to exports, 27% to the domestic market in Chile and 28% to domestic markets of foreign subsidiaries. It is important to highlight that foreign subsidiaries sales have been increasing its participation in total sales during the last quarters. This is mainly explained by the strong internationalization process undertaken by the Company through Latinamerica.

CMPC’s sales breakdown to third parties by business for 2Q11 shows that the Tissue and Pulp businesses contributed with 34% and 32% of total revenues, followed by Paper contributing with 16% of total sales. Finally, the Forestry and Paper Products divisions represented 18% of total revenues. CMPC’s EBITDA breakdown by business for 2Q11 shows that the Pulp, Papers and Paper Products divisions decreased their EBITDA when compared to that of the previous quarter. This was mainly explained by a decrease in its sales, in response to the lower sales due to a decline in our exports from Chile of Pulp and Papers, and lower sales in Chile in the case of Paper Products. In addition, costs were up slightly. On the other hand, the Forestry and Tissue businesses showed an increment on its EBITDA during the second quarter of the year. In the Forestry division, the increase was mainly explained by the higher prices of the products and to the lower fixed costs due to a better fire control. For Tissue, the increase in EBITDA is consequence to the higher local sales of our foreign subsidiaries and the decline in the manufacturing expenses and direct costs in sales.

1Q11 Sales Breakdown by Business Area

1Q12 Sales Breakdown by Business Area

1Q11 EBITDA Breakdown by Business Area

1Q12 EBITDA Breakdown by Business Area

.

4

Forestry

Pulp

Papers

Tissue

Paper Products


2Q11

Income Statement Analysis FORESTRY

The Forestry and solid wood business registered a 2% decrease in sales (US$2 million) during this period when compared to those of 1Q11, driven by a 12% decrease in sale volumes. This was mainly explained by lower export of chips that are now used to supply Santa Fe II Mill, as well as delivery delays at ports in Chile in June. Additionally, the stocking of sawnwood and plywood product lines at Home Depot in the U.S. result in lower sales. All the above explained the decrease in volumes sold of pulpwood (-36%), sawnwood (-8%) and plywood (-9%). On the other side, sawing logs and remanufactured wood increased their volumes by +3% and 12% respectively.

Δ% Sales: -2% Δ% Volumes: -12% Δ% Price: +11%

The average price of forest mix increased by 11% during 1Q11 compared to 2T11.

PULP

Pulp sales decreased by 8% (US$32 million) during 1Q11 when compared to those of 1Q11. This was mainly explained by an 8% decrease in hardwood volumes, due to Guaiba´s annual maintenance and a decrease of 16% in sales volumes of softwood and hardwood because of the delivery delays at ports in Chile in June. As a result of the above, during this quarter, export volumes of hardwood and softwood to China decreased by 17% and 15% respectively. During the second quarter of the present year Pulp registered an increase of 2% on the effective average price (including the sales of P&W integrated papers). Average effective price reached CIF 877 US$/ton and CIF 746 US$/ton for softwood and hardwood respectively. During this period, the spread between both fibers reached CIF 131 US$/ton.

Δ% Sales: -8% Δ% Volumes: -10% Δ% Price: +2%

Paper business during 2Q11 registered a 7% decrease (US$32 million) in consolidated sales, when compared to those of 1Q11, because all of its products lowered their sales.

PAPERS

If we analyze each of the papers business, newsprint volumes registered a 13% decrease when compared to those of 1Q11. However, prices remained stable, following the trend registered in foreign markets during the last months. On the other hand, boxboard prices increased 6% when compared with those of 1Q11, mainly driven by the higher demand coming from certain markets such as Brazil and Argentina. Sale volumes were down by 5%. Finally, packaging paper sale volumes decreased by 40% compared to those of the previous quarter, due to the proper seasonality of the fruit boxes production. This was offset by a 4% increase in average selling price compared to 1Q11.

Δ% Sales: -7% Δ% Volumes: -10% Δ% Price: +4% TISSUE

Δ% Total Sales: +7% Δ% Volumes: Paper: +2% / Diapers&FCP:+ 5% Δ% Price: Paper: +4% / Diapers&FCP: +2%

Tissue business, including operations in Chile, Argentina, Peru, Uruguay, Mexico, Colombia, Ecuador and Brazil, registered a 7% increase in its sales (+US$25 million) during 2Q11, when compared to those of 1Q11. Tissue paper volumes showed a 2% increment mainly due to the advance in the operation learning curve at the Colombian and the Mexican paper machines. Moreover, sanitary products increased their volumes in 5% due to the growth strategy undertaken by the Company for this category at a regional level. Finally, average sale price (measured in US Dollars) increased 2% in the case of diapers & feminine care products; whereas those of tissue paper increased by 4% when compared to those of 1Q11. The latter was mainly explained by local currencies appreciation, which benefited tissue prices when measured in US Dollars. Paper products business during 2Q11 registered a 16% decrease (US$19 million) in sales compared to those of 1Q11. This decline is mainly attributable to the seasonality of fruit and vegetable season in Chile, which makes the demand for boxes of fruit to drop during this period. All the above resulted in a 27% and 12% decrease in corrugated boxes and molded pulp trays sale volumes, when compared to those of the previous quarter. In the other hand, paper bags sale volumes increased by 14%. The average selling price registered an increase of 3%.

PAPER PRODUCTS

Δ% Sales: -16% Δ% Volumes: -19% Δ% Price: +3%

Forestry

Pulp

Papers

Tissue

Paper Products

5


2Q11

Income Statement Analysis

Operating costs excluding depreciation, stumpage and decrease due to harvest amounted to US$744 million, 5% lower than those of 1Q11. At a consolidated level, Operating costs in 2Q11 were 62% of total sales, one point lower than that of 1Q11. Other operating expenses reached US$152 million, 10% higher than that of 1Q11. This was mainly explained by the increase in Administration costs and Distribution costs. This account represented 13% of total sales, two points higher than that of 1Q11. Financial expenses increased 6% during 2Q11 when compared with those of 1Q11. On the other hand, CMPC’s Financial Income registered a 29% increment when compared to that of 1Q11, mainly explained by the higher average amount of cash handled by the Company. During this period there were higher Share results in associated companies, amounting US$4.4 million. Regarding Foreign Exchange differences, the appreciation of the closing dollar against the Chilean peso had positive results during 1Q11, registering a US$20 million gain. This income has an opposite effect in Deferred Tax, due to the fact that CMPC’s Chilean subsidiaries have their tax accounting in Chilean pesos. Indexation Unit Results is caused by the variation experienced by the balance sheet accounts registered in UF (or Unidades de Fomento). The US$4 million loss recorded during the quarter was primarily due to the positive variation of the UF (price inflation), applied to UF debts held by the company. Other gains (losses) includes sales of products that are not purely of the company business and other items such as losses not covered by insurance companies, donations, and the relative effects of changes in the fair value of financial instruments including forwards, forwards investments related to synthetic swaps, cross currency swaps and swaps, different from those under hedge accounting, among others. During this quarter, a US$27 million loss was recognized under this account. Income taxes for the period implied a US$17 million expense, US$47 million lower than that of the previous quarter. This is due to exchange fluctuation in the accounting conversion of our taxable assets and liabilities to dollars.

Consolidated Income Statement at June 30st, 2011

2010 2Q10

Figures in Th. US$

1Q11

2Q11 2Q11

QoQ

YoY

-3% -5%

19% 25%

454.590

0%

11%

Sales Operating Costs(1)

1.006.624 (595.643)

Operating Margin

410.981

454.893

(130.024)

(137.841)

(151.508)

10%

17%

280.957 28%

317.052 26%

303.082 25%

-4% 0%

8% -3%

(100.644) 57.481 (44.428)

(104.049) 71.378 (47.352)

3% 24% 7%

8% -1% -7%

Other Operating Expenses(2) EBITDA(3) EBITDA Margin (%)

Depreciation and Stumpage (96.151) Increase in Biological Assets due to Forests Growth and Price 72.061 Effects Decrease in Biological Assets due to Harvest (50.895)

6

2011

1.241.629 1.198.533 (786.736) (743.943)

Operating Income

205.973

229.461

223.059

-3%

8%

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

(32.674) 1.936 2.244 5.894 (7.832) (1.535) (50.881)

(38.107) 7.734 3.546 30.496 (3.526) (23.659) (63.323)

(40.433) 9.952 4.412 20.107 (3.925) (27.099) (16.565)

6% 29% 24% -34% 11% 15% -74%

24% 414% 97% 241% -50% 1665% -67%

Net Income

123.126

142.622

169.508

19%

38%

Forestry

Pulp

Papers

Tissue

Paper Products


2Q11

Balance Sheet Analysis st

st

As of June 30 2011, Current assets registered a 4% increase when compared with those as of March 31 , 2011. It is important to note that the Cash and cash equivalents account showed a 13% increment, as a consequence of the lower investment in term deposits within 90 to 360 days of maturity, which are recognized under the Other financial assets account. On the other hand, Non current st assets increased 3% when compared to those as of March 31 , 2011. st

Current liabilities were up by 1% when compared with those as of March 31 , 2011. On the other hand, Non current liabilities st presented a 1% decrease when compared with those as of March 31 , 2011. st

CMPC’s financial debt stood at US$3,313 million as of June 30 2011, showing a US$20 million decrement when compared to that as st st of March 31 , 2011. On the other hand, CMPC’s net financial debt reached US$2,362 million as of June 30 2011, registering an st increment of US$205 million when compared to that as of March 31 , 2011. It is important to highlight that CMPC closed the quarter with US$950 million of cash. The Net financial debt/EBITDA ratio registered a QoQ variation from 1.8 to 1.9 times. The interest coverage ratio showed a slight decrement during the quarter falling from 8,9 times to 8,7 times, when compared to that observed in 1Q11. However, the Financial debt / Tangible net worth ratio showed a decrease from 0.44 to 0.43 times. As of the end of 2Q11, 74% of CMPC’s debt was denominated in US$, 19% was denominated in Chilean pesos (or Unidades de Fomento) and the balance in other local currencies. On the other hand, 77% of CMPC’s total financial debt has a fixed interest rate, whereas the balance has a floating interest rate.

st

Debt Breakdown as of June 30 , 2011

(i) (ii) (iii) (i) (ii) (iii)

In Million US$

2Q10

1Q11

1Q11 Δ% QoQ Δ% YoY

Current Interest-bearing Liabilities Non Current Interest-bearing Liabilities Other Obligations Mark to Market of Derivatives Debt Instruments for Hedging Currencies and Interest Rates Net Hedging Current Liabilities Net Hedging Non Current Liabilities

456 2.395 (44) (35) (10) (23)

464 3.000 (52) (76) (0) (1)

521 12% 2.931 -2% (52) -1% (90) 18% 2 -12620% 1 -181%

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

2.740

3.333

3.313

-1%

21%

565

1.176

950

-19%

68%

Net Debt

2.175

2.158

2.362

9%

9%

Average Cost of Debt

4,4%

4,4%

4,4%

0,0%

0,0%

Cash*

14% 22% 18% 156% -120% -105%

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

st

Financial Ratios Evolution

Amortization Schedule as of June 30 , 2011

Shareholders’ Equity presented a US$126 million increase when compared to that of 1Q11. This is mainly due to the higher Retained Earnings registered during the quarter, as well as the higher Other reserves.

Forestry

Pulp

Papers

Tissue

Paper Products

7


2Q11

Relevant Events st

CMPC had an extraordinary bondholders meeting in July to adapt Bond contracts: On July 11 , we had a meeting with the bondholders of the Series A and B issued in Chile by Inversiones CMPC and with Empresas CMPC guaranty, registered in the Securities Registry of the Superintendencia de Valores y Seguros to modify and adapt the contracts for each series of Bonds to IFRS accounting standards. The bondholders approved the proposed amendments and on July 21, 2011 the registration of changes to the contract were submitted to the Superintendencia de Valores y Seguros. Tissue machine expansion in Brazil comes into operation: The expansion project of tissue paper in our tissue mill in Caieiras-Brazil began operations in June 2011. st

CMPC board approved the merger between the subsidiary Inforsa and CMPC: On June 10 , 2011, CMPC board reported that the conditions to the merger established by the extraordinary shareholders meetings of Empresas CMPC and Inforsa were accomplished. Consequently, CMPC began preparatory acts, including a corporate reorganization, so Empresas CMPC S.A. becomes a direct holder of 81.95% of the shares issued by Inforsa that are currently own by CMPC Papeles S.A. Inversiones CMPC sold its participation on Inversiones El RaulĂ­: On July, 2011, CMPC approved the sale of the shares that Inversiones CMPC owns of Inversiones El RaulĂ­, at approximately US$ 43.9 million. This will mean a financial profit of approximately US$ 6.1 million for CMPC.

8

Forestry

Pulp

Papers

Tissue

Paper Products


2Q11

Consolidated Balance Sheet

2010 1Q10

Figures in Th. US$*

2Q10

2011 3Q10

4Q10

1Q11

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

2.410.879 631.495 703.626 722.127 157.499 64.329 131.803

2.546.913 565.451 793.189 790.956 177.037 89.326 130.954

2.926.057 641.364 894.398 883.862 198.072 113.883 194.478

3.027.727 364.529 920.779 958.477 219.169 138.873 425.900

3.611.484 309.379 1.010.359 937.909 221.405 145.891 986.541

Non Current Assets Intangible Assets, Different from Goodwill Goodwill Property, Plant and Equipment, Net Biological Assets Deferred Tax Assets Other Non Current Assets

9.796.378 92.991 198.736 6.057.860 3.115.910 156.794 174.087

9.775.173 95.765 222.139 6.065.060 3.091.345 114.934 185.930

9.806.466 124.388 140.702 6.132.445 3.085.314 134.745 188.872

9.848.729 11.712 164.866 6.204.558 3.142.319 136.663 188.611

9.955.125 10.991 166.476 6.279.916 3.178.917 134.733 184.092

12.207.257

12.322.086

12.732.523

12.876.456

13.566.609

Current Liabilities Other Financial Liabilities Operative Liabilities Other Current Liabilities

1.065.964 472.208 429.293 164.463

1.214.397 487.455 502.444 224.498

1.311.004 513.857 571.905 225.242

1.320.951 501.376 583.723 235.852

1.382.564 499.635 591.878 291.051

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

3.829.770 2.487.931 1.096.927 244.912

3.726.105 2.395.293 1.092.689 238.123

3.758.762 2.533.938 949.857 274.967

3.733.774 2.516.437 934.315 283.022

4.238.561 3.001.426 952.281 284.854

TOTAL ASSETS

Non Controlling Participations Equity Attributable to the Owners of the Controller TOTAL LIABILITIES & SHAREHOLDERS' EQUITY

157.508

158.321

159.649

156.321

156.975

7.154.015

7.223.263

7.503.108

7.665.410

7.788.509

12.207.257

12.322.086

12.732.523

12.876.456

13.566.609

2Q11

2Q11 3Q11

4Q11

3.462.621 348.294 1.015.085 997.620 223.112 145.944 732.566 10.204.886 11.591 169.842 6.432.746 3.241.553 148.366 200.788 13.667.507 1.395.645 564.786 611.219 219.640 4.200.773 2.933.387 959.069 308.317 118.315 7.952.774 13.667.507

QoQ

YoY

-4%

36%

13%

-38%

0%

28%

6%

26%

1%

26%

0%

63%

-26%

459%

3%

4%

5%

-88%

2%

-

2%

6%

2%

5%

10%

29%

9%

8%

1%

11%

1%

15%

13%

16%

3%

22%

-25%

-2%

-1%

13%

-2%

22%

1%

-12%

8%

29%

-25%

-25%

2%

10%

1%

11%

* Balance Sheet numbers are based on CMPC's quarterly financial data, w hich is presented to the "Superintendencia de Valores y Seguros" (SVS) .

Forestry

Pulp

Papers

Tissue

Paper Products

9


2Q11

Consolidated Income Statement

2010 1Q10

Figures in Th. US$

Sales Operating Costs (1)

937.568 (603.701)

Operating Margin

2Q10 1.006.624 (595.643)

2011 3Q10

1.124.584 (666.884)

4Q10 1.150.396 (705.812)

1Q11

2Q11

1.241.629 1.198.533 (786.736) (743.943)

2Q11 3Q11

4Q11

QoQ

YoY

-3% -5%

19% 25%

333.867

410.981

457.700

444.583

454.893

454.590

0%

11%

(101.005)

(130.024)

(135.284)

(143.041)

(137.841)

(151.508)

10%

17%

EBITDA(3) EBITDA Margin (%)

232.862 25%

280.957 28%

322.416 29%

301.543 26%

317.052 26%

303.082 25%

-4% 0%

8% -3%

Depreciation and Stumpage Increase in Biological Assets due to Forests Growth and Price Effects Decrease in Biological Assets due to Harvest

(96.183) 56.335 (24.263)

(96.151) 72.061 (50.895)

(88.092) 63.360 (46.473)

(106.300) 38.605 (49.356)

(100.644) 57.481 (44.428)

(104.049) 71.378 (47.352)

3% 24% 7%

8% -1% -7%

Operating Income

168.750

205.973

251.211

184.492

229.461

223.059

-3%

8%

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

(33.135) 1.450 3.750 1.930 (2.172) (27.467) (32.885)

(32.674) 1.936 2.244 5.894 (7.832) (1.535) (50.881)

(34.383) 4.254 6.449 (21.843) (5.660) 32.656 21.685

(34.480) 6.440 5.037 (10.308) (4.920) 49.338 (13.294)

(38.107) 7.734 3.546 30.496 (3.526) (23.659) (63.323)

(40.433) 9.952 4.412 20.107 (3.925) (27.099) (16.565)

6% 29% 24% -34% 11% 15% -74%

24% 414% 97% 241% -50% 1665% -67%

80.222

123.126

254.370

182.304

142.622

169.508

19%

38%

Other Operating Expenses (2)

Net Income

(1) Operating Expenses are calculated as: Costs of Sales minus Stumpage minus Decrease in Biological Assets due to Havest minus Depreciation (2) Other Operating Expenses are calculated as: Distribution Costs plus Administration Expenses plus Other Functional Expenses (3) EBITDA is calculated as: Sales minus Operating Costs minus Other Operating Expenses

10

Forestry

Pulp

Papers

Tissue

Paper Products


2Q11

Consolidated Cash Flow Statement

2010 1T10

Figures in Th. US

Cash Flow from Operating Activities

2T10

2011 3T10

4T10

1T11

2T11

2Q11 3T11

4T11

ToT

AoA

179.015 0 0

182.027 0 0

195.203

233.064

231.245 0 0

196.217

-15%

8%

80.222 32.885 84.139 1.617 242 (78.736) 0 120.220 (48.971) (12.603) 0 0 (258.568) 0

123.126 50.881 84.229 10.848 1.935 (76.114) (5.994) 86.352 (98.255) 5.019 0

254.370 (21.686) 73.370 4.942 27.505 (50.136) 5.994 40.628 (122.697) (17.087)

182.304 13.294 83.083 10.240 15.228 (43.249) (17.480) 39.629 (44.701) (5.284)

169.508 16.566 83.555 7.868 (16.182) (56.814) (7.958) 94.212 (20.537) (74.001)

19% -74% 2% 5% -40% 37% -8% -75% 395%

38% -67% -1% -27% -936% -25% 33% 9% -79% -1574%

(33.372) 0

(232.858)

(375.641)

142.622 63.322 81.932 7.498 (26.970) (41.388) 0 102.764 (83.585) (14.950) 0 61 (726.323) 0

75.868

-110%

-327%

78.000 95 (103.133) (22.724) 0 8.491 5.408 1.496 (1.005) 0 (119.071) 0 0 12.818 57.117 69.935 0 (113.982) (32.551) (34.416) (8.057)

(78.000) 4.929 (102.747) (23.619) 0 (10.315) 0 8.378 (31.484)

(2.192) 2.870 (131.416) (26.153) 0 (15.702) 1.529 (1.214) (203.363)

-4% 25% 49% -200% 9% -152%

-100% 159% 75% 43% -166% 1% 435% -29546%

(15.255)

(140.161)

(12.818) 258.750 245.932 0 (201.198) (35.311) (32.735) 8.057

158.709 58.819 217.528 0 (277.064) (56.332) (24.293) 0

0 255 (144.244) (21.881) 0 5.640 0 7.346 (573.439) 0 449.372 0 0 495.078 128.699 623.777 0 (140.031) (50) (34.385) 61

0 246 (180.526) (32.592) (15.025) (5.640) 5.466 8.002 295.936

Proceeds form the Issuance of Short Term Debt Proceeds form the Issuance of Long Term Debt Total Proceeds form the Issuance of Debt Payments to Acquire own Shares Payments of Loans Dividends Paid Interest Paid Other Entries (Egresses) of Cash

(78.000) 0 (122.222) (43.480) 0 12.430 0 2.953 (30.249) 0 (31.712) 0 0 0 42.107 42.107 0 (37.848) (18.775) (17.196) 0

Net Increase (Decrease) in Cash and Cash Equivalents Effects of Changes in Exchange Rates on Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the Period

(111.265) (18.727) 761.487

29.584 (17.628) 631.495

(52.910) 50.824 643.451

(282.739) 31.655 615.613

631.495 29.736

643.451 (78.000)

641.365 60.043

364.528 285.396

Net Income Income Taxes Adjustments Depreciation and Amortization Adjustments Provisions Adjustments Unrealized Exchange Losses Loss (Gain) from Fair Value Adjustments Adjustments for Undistributed Profits of Associates Other Non Cash Items Ajustments Working Capital Adjustments Income Tax Refund (Payment) Cash Flow from Investment Activities Payments to Acquire Subsidiaries or other Businesses Divestments in Property, Plants and Equipment Investments in Property, Plants and Equipment Investments in Other Long Term Assets Payments arising from futures contracts, forwards, options and swap Derivative Contracts, Options and Swap Charges Dividends Received Interests Received Other Entries (Egresses) of Cash Cash Flow from Financing Activities

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

Forestry

661.231

Pulp

Papers

565.451

701.408

Tissue

649.924

(243.660)

-154%

105%

(493) 71.759 71.266 (37.246) (142.754) (99.385) (34.886) (655)

-100% -44% -89% 2% 198670% 1% -1174%

-104% 26% 2% 25% 205% 1% -92%

(45.706) (9.444) 364.529

28.425 10.491 309.379

-162% -211% -15%

-4% -160% -51%

309.379 866.248

348.294 602.121

13% -30%

-46% -872%

950.415

-19%

68%

1.175.627

Paper Products

11


2Q11

Sale Volumes

Domestic Sales(1)

(Th. m 3ssc)

Forestry and Wood Products Sawnwood, Remanufactured Wood & Plywood

Exports

2Q11 Δ%Q/Q Δ%Y/Y

Total Sales

2Q10

1Q11

2Q11

2Q10

1Q11

2Q11

2Q10

1Q11

2Q11

618

742

645

210

232

217

828

974

862

82

65

66

210

232

217

292

297

283

Pulp

(Th. Tons)

34

29

30

353

504

450

386

533

480

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

(Th. Tons)

87 17 5

85 16 9

83 16 10

131 79 38

141 84 39

119 79 32

218 96 43

226 100 47

202 95 41

Tissue Paper

(Th. Tons)

114

122

125

1

0

0

114

122

125

Paper Products Corrugated Boxes

(Th. Tons)

70 49

87 65

70 47

5 2

5 3

5 3

74 51

93 68

76 50

-12% 0% -5% 0% -10% 0% -10% -5% -13% 0% 2% 0% -19% -27%

4% 0% -3% 0% 24% 0% -7% -1% -4% 0% 10% 0% 1% -3%

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

This document provides information about Empresas CMPC SA. In any case this constitutes a comprehensive analysis of the financial, production and sales situation of the company, so to evaluate whether to purchase or sell securities of the company, the investor must conduct its own independent analysis. In compliance with the applicable rules, Empresas CMPC SA. publishes this document on its Web site (www.cmpc.cl) and sends to the Superintendencia de Valores y Seguros, the financial statements of the company and its corresponding notes, which are available for consultation and review.

12

Forestry

Pulp

Papers

Tissue

Paper Products


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