Francisca Manuschevich fmanuschevich@gerencia.cmpc.cl (56-2) 441 2867 Trinidad Valdés mtvaldes@gerencia.cmpc.cl (56-2) 441 2713
EMPRESAS CMPC S.A.
3rd Quarter 2008 Results (3Q08) October 30th, 2008
During the third quarter of 2008, there was a decline in the results of the company, mainly due to a decrease in the exported pulp volumes. On the other hand, the Tissue business started to consolidate its new operations, registering an increase in volumes, which transformed it in the business area with the largest sales in the company. The Chilean peso showed 5% depreciation against the US dollar.
CMPC’s consolidated sales for 3Q08 reached US$827 million, registering an 11% decrease when compared to 2Q08. During this quarter, there were lower sale prices in all the divisions, except Paper; while sale volumes increased only in the Tissue and Paper businesses.
EBITDA during 3Q08 reached US$159 million, showing a 35% decrease when compared to that of 2Q08. This lower EBITDA is mainly explained by a decrease in consolidated sales. On the other hand, there were fixed costs associated with unsold production, which negatively affected the results of the company.
Net Income in 3Q08 amounted to US$41 million; 63% lower than that of the 2Q08. This decrease is mainly due to the lower EBITDA of the company.
FINANCIAL REPORT
CMPC’s net debt as of the end of 3Q08 stood at US$1,315 million, decreasing US$65 million during the last quarter. The interest coverage ratio reached 11.28 times.
The company has both, currency and interest rate hedges, however, the total amount of these positions is low compared to the company’s total sales. The market value of these positions as of September 30th, 2008 was US$ 5.6 million against CMPC. At the time of publication of this report, variations on rates and currencies have reversed the position in favor of the company.
Financial Highlights (1) In million USD % Change
Sales EBITDA Depreciation & Stumpage Net Income Net Debt Net Debt / Capitalization (2) Market Capitalization Closing exchange rate
www.cmpc.cl Conference Call: November 6th 11:00 AM ET US Toll Free: 1.888.268.4180 International dial: (1 617) 597 5485 Password: 614 639 39
(1)
3Q07 787 239 (80) 148 1.407 21,3% 7.125 511,23
2Q08 925 244 (89) 109 1.380 19,2% 6.094 526,05
3Q08 827 159 (85) 41 1.315 18,9% 5.948 551,31
QoQ
YoY
-11%
5%
-35%
-34%
-4%
6%
-63%
-72%
-5%
-7%
0%
-2%
-2%
-17%
5%
8%
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 3Q08 reached US$41 million, 63% lower than the previous quarter. This decrease was primarily due to the lower EBITDA generated during the quarter. This decline was partially offset by lower depreciation, net financial expenses and other non-operational costs, specifically tax provisions, which were significantly lower than those of 2Q08. (Figure 1).
Figure 1: Net Income Analysis In USD million
120
109 100
80
24
60
41 40
1
4
20
12
85
Net Income 2Q08
Total revenues reached US$827 million, registering an 11% decrease when compared to the previous quarter, and 5% higher than the same period of the last year. During 3Q08 only the Paper business registered higher prices. At the same time, there were higher sale volumes in the Paper and Tissue divisions, the latter explained by the start up of the new tissue paper machines in Argentina and Peru. On the other hand, the Pulp division registered a sharp drop in volumes in both, softwood and hardwood, whereas the Paper Products business also experienced a decrease in volumes, mainly explained by the seasonality of the fruit export business in Chile. (Figure 2).
Empresas CMPC – 3Q08 Report
∆ EBITDA
∆ Dep reciatio n
∆ Financial Exp .
∆ Other No n Op erating
∆ Price Level Net Income 3Q08 Res tatement
Figure 2: Sales Breakdown Analysis to Third Parties (Price & Quantity Effect) In USD million -8
950
-101
+28
-5
-12
925 5 900
3
13 850
22
6 827 18 8
98
800
4
3
Q = Volume
750 P = Price
700 Total Sales 2Q08
Forest
Pulp
Papers
Tissue
Paper Products
Total Sales 3Q08
2
INCOME STATEMENT ANALYSIS
The Forestry and solid wood business registered a 7% decrease in sales (US$-8 million) during this period. The total sales volume decreased 4%, due to a decline in both, pulpwood (-31%) and sawing logs (-1%) volumes. This was partially offset by an increase in plywood (+54%), remanufactured wood (+12%) and sawn wood (+6%) volumes. Timber exports to North America showed a 4% recovery during the last quarter, continuing with the upward trend seen in the previous quarter; which reverses, in part, drops in the U.S. demand due to the subprime crisis. The average sale price registered a 3% decrease compared with the previous quarter. Pulp sales decreased 32% (US$-101 million) during 3Q08 compared to 2Q08, due to a decrease in the volumes of both fibers. Hardwood volumes decreased 24%, while softwood volumes decreased 31%. These lower volumes are explained by a contraction in the demand. The average pulp price showed a 3% decrease when compared to 2Q08, reaching CIF 721 US$/ton and CIF 726 US$/ton for softwood and hardwood respectively. During this period, the hardwood price was above that of softwood. Paper business during 3Q08 registered an 18% increase (US$+28 million) in its consolidated sales compared to 2Q08, explained by higher prices and volumes. A breakdown of the different paper grades in this business shows that Newsprint volumes registered a 7% increase during this quarter, explained by the recovery of its mill’s production capacity. On the other hand, prices increased 10%, following the trend in the foreign markets. Boxboard average sale price registered a 2% reduction. Sale volumes increased 12%, explained by the recovery of the lower exported volumes during the previous quarter, due to the strike at the Port of San Antonio. Finally, Packaging paper doubled its sale volumes, which was mainly due to the increased demand from the corrugated boxes producers, who are already preparing themselves for the next fruit season. The average sale price of corrugating paper increased 4% during the quarter. Tissue business, including operations in Chile, Argentina, Peru, Uruguay, Ecuador, Brazil, Mexico and Colombia showed a 2% decrease in sales (US$-5 million) during 3Q08, mainly explained by a 9% decrease in the sale price of tissue paper measured in US Dollars, during the quarter. Despite the fact that there was an increase in sale volumes, due to the start up of new projects in the foreign subsidiaries, it was not enough to offset the decrease in prices. Tissue paper volumes increased 5%, while those of diapers and feminine care products increased 8%. On the other hand, the average sale price fell by 9%, primarily due to the depreciation of the local currencies. Paper products business during 3Q08 registered a 15% decrease (US$-12 million) in sales compared to 2Q08. This decrease is mainly attributable to lower sale volumes (-10%), especially in multiwall bags (-10%), corrugated boxes (-19%) and moulded pulp trays (-40%) explained by the proper seasonality of this business (fruit export season in Chile). The average sale price decreased 5%.
Empresas CMPC – 3Q08 Report
3
INCOME STATEMENT ANALYSIS
A breakdown of CMPC’s sales to third parties by destination during 3Q08 shows that 49% of the sales corresponded to exports, 28% to the domestic market in Chile and 23% to domestic markets from foreign subsidiaries. (Figure 3)
Figure 3: Sales to Third Parties Breakdown by Destination Based in USD sales
Domestic Sales from Foreign Subsidiaries 23%
Export Sales 49%
Domestic Sales in Chile 28%
CMPC’s sales breakdown to third parties by business for 3Q08 shows that the Tissue business contributed with 30% of total revenues, followed by Pulp and Paper contributing with 26% and 22% of total sales respectively. Finally, Forestry and Paper Products’ businesses represented 13% and 9% of total revenues respectively. (Figure 4) During this quarter, Tissue sales were higher than those of Pulp, which was not the case since prior to the start up of the second line of Santa Fe. This was mainly due to a contraction in the demand from Chinese producers and to the increase in the production of tissue paper, as a result of the investment plan undertaken by this business at a regional level.
Figure 4: Sales to Third Parties Breakdown by Business In USD million 100%
80%
7%
9%
9%
20%
17%
22%
22%
27%
Paper products Papers Tissue
60%
30%
Pulp Forestry
40% 38%
34%
26%
20% 13%
13%
13%
3Q07
2Q 08
3Q08
0%
Empresas CMPC – 3Q08 Report
4
INCOME STATEMENT ANALYSIS
Costs of goods sold excluding depreciation amounted to US$508 million, 1% lower than those of 2Q08. The decrease in costs is mainly explained by the decrease in the Company’s total sales. On the other hand, there was an increase in energy, harvesting and transportation costs, due to the higher prices reached by oil and its derivatives. It is important to notice that despite the price of oil has experienced a decrease during the quarter, it is traded with a slight lag in Chile, which explains why the costs associated to energy and freight rates have not followed this downward trend. The prices of certain raw materials, such as wood and chemicals, continued to be high, whereas that of recycled paper showed a decline during the quarter. Costs of goods sold in 3Q08 were 61% of total sales, presenting a 5.8% increase when compared to 2Q08. This is mainly due to a decline in total sales. At the same time, fixed costs associated to unsold production were recognized during the quarter, which, together with the lower sale volumes, resulted in a lower fixed costs dilution.
Sales, General and Administrative expenses decreased 4% when compared with expenses during 2Q08 closing at US$160 million. The SG&A expenses represented 19% of total sales, 1% higher than those of 2Q08. CMPC’s consolidated EBITDA reached US$159 million, 35% lower than 2Q08’s EBITDA.
Figure 5: EBITDA Variation by Business In USD million 260 244 240
The reduction is mainly explained by the lower EBITDA in the Pulp business. The Forestry, Tissue and Paper Products’ business also showed a decrease in EBITDA. The only business area that showed a higher EBITDA compared to the previous quarter, was the Paper division. (Figure 5)
Empresas CMPC – 3Q08 Report
9 220 200 180
4 159
160
3
73
4
140 120 100 80 EBITDA 2Q08
Forest
Pulp
Papers
Tissue
Paper Products
EBITDA 3Q08
5
INCOME STATEMENT ANALYSIS
The reduction in the EBITDA of the Forestry division is mainly explained by the lower sales, in addition to the increase in the cost of harvesting and transportation. The decline in the EBITDA of the Pulp division is due to the lower volume exported during this quarter, whereas in the case of Tissue, the decrease is due to exchange rate effects, specifically by the depreciation of local currencies against the US dollar. Meanwhile, the larger EBITDA of the Paper business is primarily due to an increase in sales, despite the fact that cost pressures continue. Finally, the decline in the Paper Products’ EBITDA is due to a drop in sales resulting from the seasonality of the fruit business in Chile. (Figures 5 and 6).
Figure 6: EBITDA Breakdown by Business In USD million 240
4
8
220
34
27
200 180
28
160
4 31
140
Tissue Pulp
120 100
Paper products Papers
29
144
148
26 Forestry
80 75
60 40 20
28
32
23
3Q07
2Q08
3Q08
0
Net Financial expenses during 3Q08 decreased 9% compared to 2Q08, amounting US$13.9 million. This decrease is mainly explained by the higher level of liquidity maintained by the company, which results in an increment in financial income. The average cost of debt for 3Q08 was 4.6%, increasing 0.3% 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 loss of US$1,1 million during the 3Q08. Income Tax in 3Q08 was US$12.6 million. The effective tax rate for the year comes to 20%.
Empresas CMPC – 3Q08 Report
6
INCOME STATEMENT ANALYSIS
Current assets decreased 9% in dollars when compared to the previous quarter. This was mainly explained by the effect of the Chilean peso depreciation against the US dollar, and lower cash and marketable securities, because of the payments of some of the short term debt, short term portion of long term debt and dividends. As of the end of 3Q08, 44% of cash and marketable securities were denominated in Chilean pesos, 47% in US dollars, and the balance mainly in Euros and other currencies.
Fixed assets decreased 2% in dollars from the end of 2Q08, mainly due to the effect of the depreciation of the Chilean peso. Current liabilities as of the end of 3Q08 decreased 12% when compared to 2Q08. The decrease in the short term financial liabilities is mainly explained by the payment of part of the short-term debt. Long term liabilities decreased 7% during 3Q08. This is mainly explained by the transfer of part of the long-term debt to the short-term portion of long-term debt. Total CMPC debt reached US$1,630 million as of the end of 3Q08, 12% less than that of the previous quarter. As of the end of 3Q08, 68% of CMPC´s debt was denominated in USD, 25% was denominated in Chilean pesos (or Unidades de Fomento) and the balance in Mexican pesos and other currencies. Debt breakdown In millionUSD
% Change
3Q07
2Q08
3Q08
QoQ
YoY
Short term debt
206,5
259,4
150,8
-42%
-27%
Short term portion of long term debt
176,5
288,0
263,0
-9%
49%
Long term debt
1.201,7
1.303,6
1.215,7
-7%
1%
Total debt
1.584,8
1.851,1
1.629,5
-12%
3%
177,4
471,1
314,6
-33%
77%
1.407,4
1.380,0
1.314,9
-5%
-7%
4,7%
4,3%
4,6%
0,3%
-0,1%
Cash & cash equivalents Net debt Average cost of debt
Total Shareholder’s Equity as of the end of 3Q08 was US$5,296 million, 40% lower than that of 2Q08. This rise is mainly attributable to the depreciation of the Chilean peso during the quarter. During 3Q08, the company paid US$ 54.2 million in dividends, 40% less than the last dividend paid in May.
Empresas CMPC – 3Q08 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
3Q 08
3Q
4Q
% YoY
7%
1%
666,2
731,2
787,4
791,0
864,8
924,5
826,6
-11%
5%
(350,5)
(382,1)
(407,2)
(423,9)
(482,9)
(514,4)
(508,1)
53%
52%
52%
54%
56%
56%
61%
-1% 6%
25% 10%
(125,0)
(136,4)
(141,7)
(156,5)
(159,9)
(166,0)
(159,9)
19%
19%
18%
20%
18%
18%
19%
-4% 1%
13% 1%
190,6
212,7
238,6
210,6
222,0
244,1
158,6
29%
29%
30%
27%
26%
26%
19%
-35% -7%
-34% -11%
(68,6)
(76,2)
(79,8)
(84,5)
(91,1)
(88,6)
(84,9)
-4%
6%
73,7
-53%
-54%
43%
210%
3% -4,4 x
6% -4,4 x
-223%
5527%
-109%
-103%
-70%
-59%
-48%
42%
-63% -7%
-72% -14%
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)
6,5 (20,4)
10,4 x
10,9 x
12,5 x
12,8 x
12,3 x
12,5 x
8,1 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
(4,1) (1,0) (12,6) (1,4) 40,8
12%
17%
19%
14%
14%
12%
5%
Notes (1)
%Q oQ
523,59
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 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
3Q 08
1Q
2Q
3Q
4Q
3Q
4Q
360.590
384.581
408.330
394.278
391.178
452.107
432.774
-4%
6%
(189.718) (200.949) (211.137) (211.283)
6% 6%
26% 10%
3% 1%
14% 1%
(218.417)
(251.552)
(266.019)
54%
56%
56%
61%
(67.682) (71.760) (73.455) (78.016)
53%
52%
52%
(72.332)
(81.187)
(83.711)
20%
18%
18%
19%
103.189 111.872 123.738 104.979
19%
19%
18%
%Q oQ
% YoY
100.429
119.368
83.044
27%
26%
26%
19%
-30% -7%
-33% -11%
Depreciation & Stumpage
(37.148) (40.087) (41.355) (42.115)
(41.200)
(43.334)
(44.447)
3%
7%
Operating Income
66.041
59.229
76.034
38.597
-49%
-53%
Financial Income Financial Expenses
893 866 1.088 (10.024) (10.369) (10.023)
53%
213%
10% -4,4 x
7% -4,4 x
-227%
5388%
-111%
-103%
-68%
-58%
-44%
43%
-60% -7%
-72% -14%
% 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%
71.785
30%
82.382
62.864 1.150 (8.324)
1.191 (8.292)
2.230 (9.718)
3.410 (10.688)
12,8 x
12,3 x
12,5 x
8,1 x
912 537 (37) (2.508) (4.901) 16.759 19.412 15.255 (10.425) (13.191) (15.753) (11.254) (811) (384) (509) (347) 41.685 66.004 76.561 56.836
(1.656) 11.917 (6.960) 140 55.570
1.617 5.266 (20.826) (1.311) 53.292
(2.058) (572) (6.590) (729) 21.370
14%
12%
5%
10,4 x
12%
10,9 x
17%
12,5 x
19%
14%
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
Fixed Assets (Net)
5.189,1 5.360,1 5.662,6 6.088,4
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
2Q 526,05
3Q 551,3
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
1.869,2 314,6 575,4 59,3 841,8 78,1
6.866,3
5.841,4
234,9
294,4
6.823,6 6.969,9 7.422,1 7.927,6
9.055,6
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
QoQ
YoY
5%
8%
-9%
22%
-33%
77%
-11%
1%
12%
23%
5%
23%
-5%
33%
5.715,9
-2%
1%
259,3
226,1
-13%
1%
8.152,3
7.811,3
-4%
5%
844,8 150,8 263,0 372,3 55,3 3,4
-12%
13%
-42%
-27%
1.063,0 318,4 285,8 373,2 64,0 21,7 1.513,3 381,3 798,2 4,0 329,8
3Q08 4Q
959,7 259,4 288,0 360,1 52,1 0,0
1.657,1 1.540,2 635,2 556,0 723,5 718,8 0,0 0,0 298,4 265,4
-9%
49%
3%
27%
6%
-16%
-
-51%
-7%
4%
-12%
8%
-1%
1%
-
-100%
-11%
5%
139,0
156,9
131,1
130,2
-1%
4%
Shareholders' Equity
4.488,0 4.715,6 5.059,9 5.474,0
6.322,4
5.404,4
5.296,1
-2%
5%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
6.823,6 6.969,9 7.422,1 7.927,6
9.055,6
8.152,3
7.811,3
-4%
5%
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
3Q
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
504.856 136.441 151.527 189.456 27.432 0
464.716 90.399 137.079 204.826 30.522 1.890
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
871.712 334.158 380.595 0 156.959
850.019 306.695 396.265
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
3Q08
2.894.868 3.025.260
829.441 1.079.254 1.030.866 111.129 247.827 173.467 290.418 339.470 317.247 28.047 27.836 32.688 365.138 420.926 464.093 34.708 43.194 43.370
4Q
QoQ
YoY
-4%
31%
-30%
91%
-7%
9%
17%
33%
10%
32%
0%
44%
3.005.452
3.072.869
3.151.246
3%
9%
116.742
128.845
136.404
124.173
-9%
9%
3.794.389 3.939.138
3.963.738
4.288.527
4.306.285
0%
13%
113.980
-8%
21%
-34%
-14%
-10%
52%
8%
36%
11%
-10%
-
-47%
-2%
12%
-8%
16%
4%
9%
-
-100%
147.059
-6%
14%
68.983
71.781
4%
12%
2.767.363
2.842.969
2.919.770
3%
13%
3.963.738
4.288.520
4.306.285
0%
13%
Exhibit 3: Consolidated Cash Flow Statement Cash Flow Statement
(1) 3Q 08
Millions of US$ Dollars as of the End of Each Quarter
3Q07
2Q08
3Q08
%Q oQ
% YoY
Exchange Rate
518.55
489.03
523.59
7%
1%
Cash flows from operating activities
207.8
194.0
101.6
-48%
-51%
147.7
109.0
40.8
-63%
-72%
0.9
(0.2)
0.1
-130%
-94%
47.8
75.9
88.3
16%
85%
(23.3)
(55.2)
(28.1)
-49%
21%
33.8
61.8
(0.8)
-101%
-102%
1.0
2.7
1.4
-48%
42%
Cash flows from financing activities
(36.8)
115.0
(232.8)
-302%
534%
Loans received
306.9
401.6
122.0
-70%
-60%
0.0
0.0
0.0
0%
0%
Net income Profit on sale of fixed assets Charges not representing movement of funds Changes in assets which affect cash flows Changes in liabilities which affect cash flows Minority interest
Bonds issued Payment of dividends
(46.0)
(96.1)
(48.5)
-50%
5%
(288.4)
(190.4)
(306.5)
61%
6%
Payment of bonds
0.0
0.0
0.0
0%
0%
Payment of bonds assuance costs
0.0
0.0
0.0
0%
0%
(118.0)
(76.9)
-56%
-71%
2.1
(0.0)
0%
-87%
Payment of loans
Cash flows from investment activities Proceeds from sale of fixed assets Other income of investments
(34.2) 0.3
0.0
0.0
12.1
(120.0)
(68.8)
(58.8)
0.0
0.0
0.0
Net increase (decrease) in cash and cash equivalents
44.7
274.1
Cash and cash equivalents at beginning of period
(0.1)
Cash and cash equivalents at end of period
44.6
Capital expenditures Permanent investments
(0.0) 274.1
0%
0%
-14%
-51%
0%
0%
(159.0)
-158%
-456%
(0.0)
-26%
-73%
(159.1)
-158%
-456%
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
3Q 2008 vs 2Q 2008
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
2Q 08
3Q 08
2Q 08
3Q 08
2Q 08
3Q 08
672,7
622,8
212,4
222,8
885,1
845,6
62,3
76,1
172,1
180,0
234,3
256,2
9%
-4%
(Th. Tons)
4,7
4,0
420,7
289,9
425,4
293,9
-31%
(Th. Tons)
76,4
80,2
0,8
1,0
77,2
81,2
5%
(Th. Tons)
74,0 15,0 14,3 61,6
82,2 15,3 14,0 60,5
106,1 66,3 34,7 8,3
123,0 75,2 38,3 5,6
180,1 81,3 49,0 69,9
205,2 90,5 52,3 66,1
14% 11% 7% -5%
42,5
33,8
4,1
2,0
46,6
35,8
-23%
(Th. Tons)
Corrugated Boxes (1)
Total Sales
(1)
Considers Chile and Foreign Subsidiaries Excluding sales of diapers and feminine care products.
Volumes Domestic
3Q 2008 vs 3Q 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
3Q 07
3Q 08
3Q 07
3Q 08
3Q 07
3Q 08
660,7
622,8
235,0
222,8
895,7
845,6
65,0
76,1
194,7
180,0
259,7
256,2
-1%
289,9
445,1
293,9
-34%
-6%
(Th. Tons)
6,8
4,0
438,3
(Th. Tons)
70,8
80,2
1,0
1,0
71,9
81,2
13%
(Th. Tons)
78,0 14,6 13,2 43,3
82,2 15,3 14,0 60,5
110,8 67,9 38,1 7,0
123,0 75,2 38,3 5,6
188,8 82,5 51,4 50,3
205,2 90,5 52,3 66,1
9% 10% 2% 31%
28,7
33,8
2,9
2,0
31,6
35,8
13%
(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.