Empresas CMPC S.A. Third Quarter 2009 Results th November 26 , 2009
3Q09 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
3Q09
“On October 7th, CMPC signed a Quota Purchase Agreement with the Brazilian Company Aracruz. This contract considers the transfer of ownership of Aracruz’ Guaíba Unit into CMPC. The agreement includes Aracruz’ industrial installations, lands, and forests located in the municipality of Guaíba, in the state of Rio Grande do Sul. The agreed price was US$1,430 million, subject to several adjustments. All the above confirms CMPC’s long term business vision, which is focused on generating value through its traditional stamp of innovation and prudence in all its business activities.”
Conference Call rd Date: December 3 11:00 AM Eastern Time / 1:00 PM Santiago de Chile’s Time US Toll Free: (+1 888) 419 5570 International Dial: (+1 617) 896 9871 Password: 27440491
3Q09
3Q09 in Brief
During the third quarter of 2009, there was an increase in the total sales of the company, which was mainly due to the consolidation of some of the projects of the Tissue business, through several Latinoamerican countries. It is important to highlight the positive impact in revenues of the Melhoramentos' acquisition, a Brazilian tissue paper company acquired by CMPC on April 2009, which has only been consolidated since July 1st. Finally, pulp prices have continued to rise, which mainly responds to the growth in the Asian pulp demand. All the above had a positive impact on CMPC's EBITDA, which recorded an increase of 27%, when compared with that of 2Q09.
•
CMPC’s consolidated sales for 3Q09 reached US$819 million, registering an 18% increase when compared to those of 2Q09. During the quarter, there were higher sale prices in all business divisions, except from Forestry and Papers. On the other hand, sale volumes increased in all business areas, except from Pulp.
•
EBITDA reached US$164 million during 3Q09, showing a 27% increase when compared to that of 2Q09. This higher EBITDA is mainly explained by the raise in CMPC's consolidated sales. The EBITDA margin reached 20%, which was slightly higher compared with that of the previous quarter.
•
CMPC registered a Net Income of US$63 million during 3Q09; showing a 126% increase when compared to that of 2Q09, which was primarily due to a higher EBITDA generation, as well as superior earnings coming from Exchange rate differences and Price level restatement.
•
•
CMPC’s net debt as of the end of 3Q09 stood at US$1,317 million, decreasing US$116 million when compared to that showed at the end of 2Q09. During September, the last installment of the 2004 syndicated loan was paid. On October 7th, 2009, CMPC signed a Quota Purchase Agreement with the Brazilian Company Aracruz. This contract considers the transfer of ownership of Aracruz’ Guaíba Unit into CMPC. The agreement includes Aracruz’ industrial installations, lands, and forests located in the municipality of Guaíba, in the state of Rio Grande do Sul. The agreed price was US$1,430 million, subject to several adjustments. The purchase will mean an increase of 450 thousand tons of pulp production capacity per year, which reaffirms CMPC as one of the leaders of the pulp industry worldwide.
Key Figures US$ Million
3Q08
2Q09
3Q09
∆%Q/Q
∆%Y/Y
FY 2008
FY 2009
∆%Y/Y
Sales EBITDA EBITDA Margin Net Income
788 186 24% 58
691 130 19% 28
819 164 20% 63
18% 27% 1% 126%
4% -11% -3% 9%
2,511 659 26% 348
2,209 434 20% 145
-12% -34% -7% -58%
60
85
92
8%
52%
196
234
19%
Total Assets Net Debt Market Capitalization
5,948
10,105 1,433 5,264
10,550 1,317 7,028
4% -8% 33%
18%
5,948
10,550 1,317 7,028
18%
Closing Exchange Rate Average Exchange Rate
551.31 523.59
531.76 557.48
550.36 548.34
3% -2%
0% 5%
551.31 523.59
550.36 548.34
0% 5%
CAPEX
2
Forestry
Pulp
Papers
Tissue
Paper Products
3Q09
Income Statement Analysis
Total revenues reached US$819 million during the quarter, an 18% higher when compared to those of 2Q09. During the quarter, there were higher pulp sale prices, which were mainly explained by the increase in demand for pulp coming from Asia. Nevertheless, this was partially offset by a decrease in sale volumes, which was mainly due to a delayed shipment with destination to Asia. On the other hand, Forestry sale volumes were up, especially those of plywood, sawing logs and pulpwood. Moreover, Paper sale volumes were also higher when compared with those of the last quarter, especially those of boxboard and corrugating paper. Finally, the increase in Tissue sale volumes was consequence of the consolidation of several capacity growth projects undertaken in Argentina, Peru, Uruguay, Mexico, and recently in Brazil, because of the Melhoramentos’ acquisition.
Total Revenues Evolution
Sales Breakdown Analysis to Third Parties 819
788 691
3Q08
2Q09
3Q09
CMPC’s consolidated EBITDA reached US$164 million, 27% higher than 2Q09’s EBITDA. This growth is mainly explained by the superior EBITDA of the Tissue, Pulp, Forestry and Paper Products divisions. Nevertheless, this was slightly offset by a decrease in the EBITDA of the Paper division.
EBITDA Variation by Business
EBITDA Evolution
+19
186
+7
+1
+14
164
-7
130 164 130
3Q08
2Q09
EBITDA 2Q09
3Q09
Forestry
Pulp
Papers
Tissue
Paper Products
EBITDA 3Q09
Net Income during the quarter reached US$63 million, 126% higher than that of 2Q09. This increase was partially due to the superior EBITDA generated during the quarter. In addition, there was a higher income from Price level restatement, in response to the dollar depreciation as well as the negative inflation registered in Chile during the quarter. All the above was partially offset by higher Financial costs and Other non operational items, especially Income taxes.
Net Income Analysis
Net Income Evolution
+35
63
58
-3
-2
+60
-8
63
-47
28
3Q08 Forestry
2Q09 Pulp
28
3Q09 Papers
Net Income 2Q09
EBITDA
Tissue
Depreciation & Stumpage
Net Biol. Income
Financial Costs
Other Non Price Level Net Income Oper. Restatement 3Q09
Paper Products
3
3
3Q09
Income Statement Analysis Sales to Third Parties Breakdown by Destination FORESTAL
A breakdown of CMPC’s sales to third parties by destination during 3Q09 shows that 44% of the sales corresponded to exports, 26% to the domestic market in Chile and 30% to domestic markets of foreign subsidiaries. It is important to highlight that during 3Q09, foreign subsidiaries contribution to consolidated sales increased 7 points, when compared to 2Q09. This was mainly due to the consolidation of several capacity growth projects undertaken in Argentina, Peru, Uruguay, Mexico and recently Brazil, because of the acquisition of Melhoramentos.
Foreign Subsidiaries Sales 30%
Export Sales 44%
Domestic Sales in Chile 26%
CMPC’s sales breakdown to third parties by business for 3Q09 shows that the Tissue business contributed with 38% of total revenues, followed by Pulp and Paper contributing with 23% and 20% of total sales respectively. Finally, the Forestry and Paper Products divisions represented 11% and 8% of total revenues respectively. CMPC’s EBITDA breakdown by business for 3Q09 shows that the Tissue division has been benefited by its sales growth, due to the higher installed capacity, as well as the superior prices measured in US Dollars registered during the quarter, as a consequence of local currencies appreciation. On the other hand, the Forestry EBITDA contribution was also higher when compared to that of 2Q09. This was mainly due to higher sale volumes, especially in those of plywood, sawing logs and pulpwood. Finally, Paper and Paper Products businesses registered a decrease in its contribution to consolidated EBITDA.
2Q09 Sales Breakdown by Business Area Paper Products (10%)
3Q09 Sales Breakdown by Business Area Paper Products Forestry (11%) (8%)
Forestry (11%)
Pulp (26%)
Tissue (31%)
Pulp (23%)
Tissue (38%)
Papers (22%)
Papers (20%)
2Q09 EBITDA Breakdown by Business Area
3Q09 EBITDA Breakdown by Business Area
Paper Products Forestry (3%) (7%)
Paper Products (6%)
Tissue (24%)
.
Pulp (35%)
Tissue (31%)
Pulp (36%)
Papers (31%)
4
Forestry
Forestry (7%)
Papers (20%)
Pulp
Papers
Tissue
Paper Products
3Q09
Income Statement Analysis
The Forestry and solid wood business registered a 16% increase in sales (+US$12 million) during this period when compared to that of 2Q09. Total sale volumes increased by 16%, due to an increment in plywood (+38%), pulpwood (+30%), sawing logs (+23%) and remanufactured wood volumes (+2%). Sawn wood volumes remained stable when compared to those of the previous quarter. Average sale price decreased 1% when compared to that of 2Q09.
FORESTRY
∆% Sales: +16% ∆% Volumes: +16% ∆% Price: -1%
Pulp sales increased by 6% (+US$11 million) during 3Q09 when compared to 2Q09, which was mainly explained by a 21% increase in CMPC’s pulp average effective price. This rise was slightly offset by a decrement in sale volumes (-13%). Hardwood volumes decreased 19%, while those of softwood increased 2%. The lower volumes reached by hardwood are mainly explained by a delayed shipment with destination to Asia, which resulted in a 34% reduction in CMPC’s export volumes to that continent. The above was partially offset by a 58% increase in the company’s exports to Latin America. On the other hand, the higher volumes reached by softwood are mainly explained by an increase in the company’s exports to Europe (+13%), as well as Latin America (+16%). Average effective price reached CIF 566 US$/ton and CIF 486 US$/ton for softwood and hardwood respectively. During this period, the spread between both fibers reached 80 US$/ton.
PULP
∆% Sales: +6% ∆% Volumes: -13% ∆% Price: +21%
Paper business during 3Q09 registered a 6% increase (+US$9 million) in consolidated sales, when compared to those of 2Q09. This was mainly due to the higher sale volumes, especially those reached by boxboard and packaging paper.
PAPERS
A breakdown of the different paper grades in this business shows that Newsprint volumes registered a 9% decrease when compared to those of 2Q09. On the other hand, prices decreased 8%, following the trend in the foreign markets. On the other hand, Boxboard prices remained stable when compared with those of 2Q09. Nevertheless, sale volumes were up by 11%. Finally, Packaging Paper sale volumes increased 15% compared to those of the last quarter. This was mainly explained by the higher industrial activity as well as the increased demand from the corrugated boxes producers, who are already preparing themselves for the next fruit season. Average sale price also remained stable when compared to that of the previous quarter.
∆% Sales: +6% ∆% Volumes: +7% ∆% Price: -1% TISSUE
Tissue business, including operations in Chile, Argentina, Peru, Uruguay, Mexico, Colombia, Ecuador and recently Brazil, showed a 44% increase in sales (+US$95 million) during 3Q09 when compared to those of 2Q09. This was mainly explained by an increase in sale volumes, because of the higher production of the new tissue paper machines in Argentina, Peru, Uruguay and Mexico, as well as the recent acquisition of Melhoramentos in Brazil. Tissue paper volumes increased 34%, whereas those of diapers and Feminine Care Products increased 13%. On the other hand, average sale price (measured in US Dollars) increased 10% for tissue paper, whereas those of diapers & feminine care products increased 15%, when compared to those of 2Q09.
∆% Total Sales: +44% ∆% Volumes: Paper:+34%/Diapers&FCP:+13% ∆% Price: Paper:+10%/Diapers&FCP:+15% PAPER PRODUCTS
Paper products business during 3Q09 registered a 3% increase (+US$2 million) in sales compared to 2Q09. This increment is mainly attributable to the higher industrial activity level, which positively affected sale volumes. Corrugated boxes volumes were down by 3%, in response to the proper seasonality of the fruit export business in Chile. On the other hand, molded pulp trays volumes decreased by 32%, mainly in response to the weak apple season. All the above was completely offset by a 23% increase in paper bags volumes. Average sale price increased 2%, when compared to the last quarter.
∆% Sales: +3% ∆% Volumes: +1% ∆% Price: +2%
Forestry
Pulp
Papers
Tissue
Paper Products
5
3Q09
Income Statement Analysis
Operating costs excluding depreciation, stumpage and decrease due to harvest amounted to US$537 million, 17% higher than that of 2Q09. This increment in costs is mainly explained by an 18% increase in CMPC’s total sales. At a consolidated level, Operating costs in 3Q09 were 66% of total sales, one point lower than that of 2Q09. Other operating expenses increased 17% when compared to that of 2Q09, reaching US$118 million. This account represented 14% of total sales, one point lower than that of 2Q09. Financial expenses during 3Q09 increased 34% compared to 2Q09, amounting to US$29 million. This increase is primarily explained by the higher level of consolidated total debt, in advance to the GuaĂba unit assets acquisition. Moreover, during this period there were lower Share results in associated companies. Exchange rate differences are generated by the accounting mismatch between assets and liabilities denominated in currencies th different from the US Dollar (functional currency) at a specific point in time. As of September 30 2009, non-US Dollar denominated liabilities where higher than assets denominated in non functional currencies. Based on the foregoing, the appreciation of local currencies against the US dollar during the period, generated a US$18 million income. Price level restatement is caused by the variation experienced by the balance sheet accounts registered in UF (or Unidades de Fomento). The US$3 million gain during the quarter was primarily due to the negative variation of the UF (price deflation) during the quarter, applied to UF debts held by the company. Other gains includes sales of products that are not purely of the company business and other items such as losses not covered by insurance companies, financial income, donations, among others. During this quarter there was a US$1 million gain in this account, 128% higher than that of 2Q09. Income taxes for the period amounted US$18 million. This was mainly due to the negative variation resulting from the Price-level restatement effect arising from Deferred taxes, because of the US Dollar appreciation.
6
Forestry
Pulp
Papers
Tissue
Paper Products
3Q09
Balance Sheet Analysis th
th
As of September 30 2009, Current assets showed a 12% increase when compared with those of June 30 , 2009. This was mainly due to the increase registered in Cash and cash Equivalents, as a result of the issuance of 5 years bilateral credit facilities, as well as a higher cash generation during the quarter. On the other hand, Non current assets presented a 2% increase when compared with th those of June 30 , 2009. th
Current liabilities were down by 1% when compared with those of June 30 , 2009. The above was mainly due to short term debt th diminution. On the other hand, Non current liabilities presented a 15% increase when compared with those of June 30 , 2009. This is mainly explained by the issuance of 5 years bilateral credit facilities, to refinance liabilities, as well as to finance CMPC’s new projects. The current liquidity ratio rose from 2.5 to 2.9 times, because of the Current assets increase in addition to the Current liabilities decrease. th
CMPC’s financial debt stood at US$2,163 million as of September 30 2009, showing a US$154 million increase when compared to th that of June 30 , 2009. This is mainly explained by the issue of new credits, which are destinated to refinance liabilities as well as to th finance CMPC’s new projects. On the other hand, CMPC’s net financial debt reached US$1,316 million as of September 30 , 2009, th registering a decrease of US$116 million when compared to that of June 30 , 2009. This decrease is mainly explained by the higher cash generation. As of the end of 3Q09, 57% of CMPC´s debt was denominated in USD, 35% was denominated in Chilean pesos (or Unidades de Fomento) and the balance in other local currencies. On the other hand, 72% of CMPC’s total financial debt has a fixed interest rate, whereas the balance has a floating interest rate.
th
Debt Breakdown as of September 30 , 2009 (i) (ii) (iii) (iv)
In Th. US$
2Q09
3Q09
Interest-bearing Liabilities Hedging Liabilities Non Current Interest-bearing Liabilities Mark to Market of Derivatives Debt Instruments for Hedging Currencies and Interest Rates (1)
449,464 4,610 1,612,979 (58,029)
Total Debt
2,009,025
354,596 12,354 1,851,818 (55,993) 2,162,775 846,121 0 1,316,653 4.6%
Cash and Cash Equivalents
576,466
Net Debt
1,432,559
Average Cost of Debt (1)
4.8%
∆% QoQ -21% 168% 15% -4% 8% 47% -8% -0.2%
Information included in Note N°9 of CMPC's Financial Statements: Financial Assets
th
Amortization Schedule as of September 30 , 2009
500 337 133 2010
174
2011
358 252
222 144
126 2012
2013
2014
2015
2019
2027
2030
Shareholders’ Equity presented a US$40 million increase when compared to that of 2Q09. This is mainly due to a higher Retained earnings generation during the quarter.
Forestry
Pulp
Papers
Tissue
Paper Products
7
3Q09
Relevant Events
8
•
Rebuilding of the Laja mill project: In July 2009, the Corema (regional environmental authority) of the Bío Bío region approved the environmental impact study of the Laja mill Project. The first of two stages considers a US$299 million investment. The first stage will allow the Laja mill to recover its capacity of 370 thousand tons per year. The above corresponds to Laja’s capacity before its Line’s 1 indefinite detention in January, 2009. As a consequence of the rebuilding, the mil will reduce its operational costs, decrease its electric energy dependency from external sources, as well as improve its environmental performance. The start up of the main equipments is scheduled for 1S12.
•
US$250 million bilateral credit facilities with Banco Estado: In August, CMPC through its subsidiaries, issued in Chile a total of US$250 million, divided in 5 years bullet bilateral credit facilities with Banco Estado. This allowed CMPC to refinance liabilities, increase its cash position as well as to finance CMPC’s expansion projects.
•
Publication of CMPC’s Sustainable Development Report: On September 7 , CMPC published the fifth version of its Sustainable Development Report. This document captures the essence of the company’s business model, which allows CMPC to establish long-term relationships with employees, suppliers, service companies, customers, environment and neighboring communities. Social responsibility is an integral part of the CMPC business and organizational model, allowing effective linking to all stakeholders. This report is now available, both in Spanish and English, at CMPC’s web site (www.cmpc.cl).
•
CMPC approves the construction of a new double width tissue paper machine in Brazil: In October, CMPC’s board approved the construction of a new double width tissue paper machine in the Caieiras mill, Brazil. This new machine implies a total investment of US$60 million for 54 thousand tons of production capacity per year. This new machine should start operations in 2011. With this investment, the Brazilian installed capacity will reach 129 thousand tons of tissue paper per year.
•
Acquisition of Aracruz’ Guaíba Unit: On October 7 , CMPC and Aracruz signed a Quota Purchase Agreement, which formalized the main terms and conditions under which CMPC acquires the forestry and industrial assets related to the Guaíba th unit. The transaction price for the total acquisition is US$1,430 million. The purchase will be completed on December 15 , after a US$1,000 million payment. The balanced will be paid on the following 45 days. The Guaíba assets are located in the city of Guaíba, 30 kilometers away from Porto Alegre, in the state of Rio Grande do Sul. The acquisition includes: (i) land totaling an area of approximately 212,000 hectares of eucalyptus (of which 125,000 hectares are already planted or in plans to be planted); (ii) a nursery capable of producing 30 million plants a year and genetic material developed by Aracruz for this unit; (iii) a pulp mill with an annual production capacity of approximately 450,000 tons of bleached hardwood pulp; (iv) a paper plant, with an annual production capacity of around 60,000 tons; (v) an industrial site, environmental licenses and authorizations for a project to expand the pulp mill, raising its production capacity to around 1.75 million tons a year; (vi) US$89.4 million of working capital; (vii) all assets and services necessary for the proper operation of the property identified. With this acquisition, CMPC’s installed capacity will increase by 23%, exceeding 2.45 million tons of pulp production per year. With this, CMPC will reaffirm its position as one of the most important players in the pup industry worldwide.
•
CMPC started a US$500 million capital increase process: As a part of the Guaíba acquisition financing plan, on Empresas st CMPC’s 51 Extraordinary Shareholders meeting, it was agreed a US$500 million capital increase. This will be done through the issue of new 20 million common shares, payable at a price of CLP$13,800 each (US$25 per share based upon an exchange rate of CLP$552 per US Dollar). Consequently, Empresas CMPC’s capital will be divided into 220 million shares. Once the Superintendence approved the issuance, the Company started a preferential offer period to all shareholders th th registered at the closing of November 7 , 2009. The preferential offer period ends by December 13 .
•
US$500 million International benchmark bond issue: Additionally, as part of the Guaíba acquisition financing plan, on th October 29 , Inversiones CMPC S.A. issued a US$500 million international benchmark bond under the 144A-S regulation of the United States Securities Act. The transaction was under the guaranty of Empresas CMPC, acting through its Cayman Island Agency. This bullet bond has a maturity term of 10 years, with by annual interest payments. Issue effective rate was 6.245%, which was equivalent to CT10 + 275 Bps of spread. BNP Paribas, J.P. Morgan and Santander act as joint bookrunning managers.
th
th
Forestry
Pulp
Papers
Tissue
Paper Products
3Q09
Consolidated Balance Sheet 2008
2009 2Q09
3Q09
4Q08
1Q09
Current Assets Cash and Cash Equivalents Operative Receivables Inventories Biological Assets Hedging Assets, Net Other Current Assets
1,877,445 219,866 654,613 768,786 142,470 2,618 89,092
2,189,956 534,976 647,847 737,341 173,246 6,117 90,429
2,141,115 576,466 615,483 672,353 183,810 93,003
2,407,277 846,121 618,466 683,283 184,022 75,385
Non Current Assets Hedging Assets, Net Property, Plant and Equipment Biological Assets Other Non Current Assets
7,813,227 7,687 4,927,325 2,572,986 305,229
7,917,848 15,229 5,015,039 2,561,814 325,766
7,964,188 4,968,901 2,557,026 438,261
TOTAL ASSETS
9,690,672
10,107,805
870,744 408,064 356,363 106,316
Figures in Th. US$*
3Q09
4Q09
QoQ
YoY
12%
-
47%
-
0%
-
2%
-
0%
-
-
-
-19%
-
8,142,839 5,141,221 2,560,838 440,780
2%
-
0%
-
3%
-
10,105,303
10,550,116
793,912 348,493 336,501 108,918
853,018 449,464 297,733 105,821
841,590 354,596 375,953 111,040
2,319,072 1,220,522 995,101 103,449
2,599,492 1,613,056 886,863 99,573
2,685,498 1,612,979 951,040 121,479
3,101,673 1,851,818 948,056 301,799
156,194
153,567
153,675
Shareholders' Equity
6,344,662
6,560,834
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
9,690,672
10,107,805
Current Liabilities Interest-Bearing Liabilities Operative Liabilities Other Current Liabilities Non Current Liabilities Interest-Bearing Liabilities Deferred Tax Liabilities Other Non Current Liabilities Minority Interests
0%
-
1%
-
4%
-
-1%
-
-21%
-
26%
-
5%
-
15%
-
15%
-
0%
-
148%
-
153,768
0%
-
6,413,112
6,453,085
1%
-
10,105,303
10,550,116
4%
-
* 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
3Q09
Consolidated Income Statement
2008 1Q08
Figures in Th. US$
Sales Operating Costs(1)
2Q08
2009 3Q08
4Q08
1Q09
2Q09
3Q09 3Q09
4Q09
QoQ
YoY
844,928 (534,583)
877,461 (514,244)
788,347 (512,341)
698,394 (489,543)
691,295 (460,459)
819,150 (536,563)
18% 17%
4% 5%
310,345
363,217
276,006
208,851
230,836
282,587
22%
2%
(92,654)
(107,680)
(90,275)
(69,543)
(100,974)
(118,115)
17%
31%
EBITDA(3) EBITDA Margin (%)
217,691 26%
255,537 29%
185,731 24%
139,308 20%
129,862 19%
164,472 20%
27% 7%
-11% -15%
Depreciation and Stumpage Increase in Biological Assets due to Forests Growth and Price Effects Decrease in Biological Assets due to Harvest
(77,171) 61,292 (29,267)
(80,240) 61,218 (42,457)
(80,199) 62,206 (45,935)
(75,583) 49,105 (32,513)
(78,517) 38,318 (34,315)
(81,551) 38,318 (35,853)
4% 0% 4%
2% -38% -22%
Operating Margin Other Operating Expenses
(2)
Operating Income
172,545
194,058
121,803
80,317
55,348
85,385
54%
-30%
Financial Expenses Share Results in Associated Companies Exchange Rate Differences Price Level Restatement Other Gains (Losses) Income Taxes
(18,029) (638) (47,860) (3,333) 2,935 43,013
(21,387) 3,724 80,101 (6,163) 7,968 (117,224)
(18,738) (550) 8,022 (13,851) (1,287) (37,448)
(19,262) 2,969 (41,226) 9,372 (5,897) 27,121
(21,905) 6,805 (41,213) 1,940 (4,395) 31,541
(29,446) 3,486 17,719 2,702 1,234 (17,638)
34% -49% -143% 39% -128% -156%
57% -733% 121% -120% -196% -53%
141,077
57,950
53,393
28,119
63,442
126%
9%
Net Income
148,633
(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: Marketing Costs plus Distribution Costs plus Administration Expenses plus Other Operational Costs plus Research and Development (3) EBITDA is calculated as: Sales minus Operating Costs minus Other Operating Expenses
10
Forestry
Pulp
Papers
Tissue
Paper Products
3Q09
Consolidated Cash Flow Statement
Figures in Th. US
Cash Flow from Operating Activities
2008
2009
As of September
As of September
YoY
402,7900 0 347,659 195,776 201,109 (16,916) (67,056) (44,476) (211,674) 0 0 (113,335) 0 0 856,778 0 (710,568) (52,848) (206,697) 0 0 (170,041) 0 0 294 3,878 (196,487) 22,274
523,502
30%
144,954 54,066 202,753 50,706 (23,060) 22,454 84,876 0 0 346,609 0 0 559,843 405,858 (508,308) (63,641) (47,143) 0 0 (254,661) 0 0 278 15,247 (233,861) (36,325)
-58% -72% 1% -400% -66% -150% -140%
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
119,414 5,927 167,863
615,450 10,130 220,541
415% 71% 31%
Cash and Cash Equivalents at the End of the Period
293,204
846,121
189%
Net Income Adjustments to Reconcile with Opertaing Income Depreciation Unrealized Exchange Losses Change in Fair Value of Biological Assets Adjustment for Significant Non-Cash Items Increase (Decrease) in Working Capital Cash Flow from Financing Activities Proceeds from New Long Term Debt Bonds Issued Payments of Loans Payments of Financial Interests Dividens Paid Cash Flow from Investment Activities Divestments in Property, Plants and Equipment Other Cash Flows used in Investment Activities Investments in Property, Plants and Equipment Payments to Acquire Other Financial Assets
Forestry
Pulp
Papers
Tissue
Paper Products
-406% -35% -28% 20% -77% 50% -5% 293% 19% -263%
11
3Q09
Sale Volumes
Domestic Sales(1) 3Q08
2Q09
3Q09
3Q08
2Q09
3Q09
3Q08
2Q09
3Q09
(Th. m ssc)
623 0 87 0
459 0 66 0
546
223 0 223 0
195 0 195 0
216 0 216 0
846 0 309 0
654 0 261 0
762
(Th. Tons)
40 62 15 14 0
11 0 41 13 10 0
3
290 0 123 75 38 0
405 0 129 68 50 0
359 0 128 75 44 0
294 0 185 91 52 0
416 0 170 81 60 0
80 0 61 34
91 0 53 38
01 6 2
01 6 3
01 6 1
81 0 66 36
92 0 59 41
3
Forestry and Wood Products Sawnwood, Remanufactured Wood & Plywood Pulp Paper, Boxboard and Newsprint
3Q09 ∆%Q/Q ∆%Y/Y
Total Sales
Exports
(Th. Tons) Boxboard Newsprint
Tissue Paper
(Th. Tons)
Paper Products
(Th. Tons) Corrugated Boxes
60 50 14 10 123 53 38
16%
-10%
276
6%
-11%
363
-13%
23%
178 90 54
5% 11% -9%
-3% -1% 4%
124
34%
52%
59 39
1% -3%
-10% 10%
(1) Considers Chile and Foreign Subsidiaries
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