Empresas CMPC S.A. Third Quarter 2010 Results th November 5 , 2010
3Q10
New tissue paper machine in Gachancipá, Colombia – launched 3Q10
3Q10 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
“Since the 90’s, CMPC began an internationalization process, which has been accelerating during the last years. 90 years after its foundation, CMPC operates in 8 countries, generating over 14,700 direct jobs, contributing with the development of the communities where the Company operates, satisfying the needs of more than 20,000 direct customers over 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: Friday, November 12 , 10:00 AM Eastern Time 12:00 PM Santiago de Chile US Toll Free: (+1 888) 419 5570 International Dial: (+1 617) 896 9871 Password: 283 931 44
3Q10
3Q10 in Brief
During the quarter, CMPC registered an increase in its sales and EBITDA, when compared with those reached in the second quarter of the year. This was mainly explained by the normalization of the Company's operational activity, which was affected by the earthquake that hitted Chile in February 2010. In relation to the above, during the quarter a US$50 million advance payment was received from insurance companies corresponding to business interruption claims due to the earthquake. Regarding the better results achieved by the Company during the quarter, it is important to highlight the recovery in pulp activity after the earthquake. Only since September, the Pulp division reached an equilibrium between production and sales. Nevertheless, this positive effect was slightly reversed by lower pulp prices, which diminished by 3% and 1% for softwood and hardwood respectively.
•
CMPC’s consolidated sales for 3Q10 reached US$1,125 million, registering a 12% increase when compared to those of 2Q10. During the quarter, there were higher sale prices in all divisions, except from Pulp. On the other hand, sale volumes increased in all business areas, except from Forestry and Paper Products.
•
Consolidated EBITDA reached US$322 million during 3Q10, showing a 15% increase when compared to that of 2Q10. This higher EBITDA is mainly explained by the raise in CMPC's consolidated sales. The EBITDA margin reached 29%, one point higher than that of the previous quarter.
•
CMPC registered a Net Income of US$254 million during 3Q10; showing a 107% increase when compared to that of 2Q10. This was mainly explained by the higher level of EBITDA registered during the quarter, as well as a US$50 million advance payment received from insurance companies corresponding to business interruption claims due to the earthquake. This payment was recognized under the "Other gains (losses)" account of the Income statement. With the information available as of today, the management estimates that the balance of compensations to be received from insurance companies regarding business interruption, should reach an amount close to US$75 million.
•
CMPC’s net debt as of the end of 3Q10 stood at US$2,248 million, presenting a US$73 million increase when compared to that as of June 30th, 2010. This was mainly explained by the higher level of indebtedness reached by some of the foreign subsidiaries, as well as the negative effect of the dollar depreciation in loans denominated in local currencies. CMPC closed the quarter with US$2,889 of total debt and US$641 million of cash.
•
During the quarter CMPC started up two new tissue paper machines; one in the Altamira mill in Mexico (which is the third machine in that facility) and the other one in the new Gachancipá tissue paper mill in Colombia.
Key Figures US$ Million
3Q09
2Q10
3Q10
∆%Q/Q
∆%Y/Y
FY 2009
FY 2010
∆%Y/Y
Sales EBITDA EBITDA Margin Net Income
819 164 20% 63
1,007 281 28% 123
1,125 322 29% 254
12% 15% 1% 107%
37% 96% 9% 301%
2,209 433 20% 145
3,069 836 27% 458
39% 93% 8% 216%
CAPEX
2
40
121
131
8%
231%
284
496
75%
Total Assets Net Debt Market Capitalization
10,559 1,317 7,028
12,322 2,175 9,609
12,733 2,248 11,839
3% 3% 23%
21% 71% 68%
10,559 1,317 7,028
12,733 2,248 11,839
21% 71% 68%
Closing Exchange Rate Average Exchange Rate
550.36 548.34
547.19 531.68
483.65 503.17
-12% -5%
-12% -8%
550.36 568.54
483.65 519.99
-12% -9%
Forestry
Pulp
Papers
Tissue
Paper Products
3Q10
Income Statement Analysis
Total revenues reached US$1,125 million during the quarter, a 12% higher when compared to those of 2Q10. During the quarter, there were higher sale prices in all business areas, except from Pulp. It is important to highlight the increase registered in the prices of all Paper grades, especially in those of packaging paper, newsprint and boxboard. Forestry prices also showed an increase. This was mainly explained by a higher domestic activity, as well as a raise in external demand. Finally, local currencies appreciation raised Tissue prices when measured in US Dollars. On the other hand, sale volumes were positively affected by the normalization of the Company's activity level, which was affected by the earthquake. The above explains the sharp increase registered in the volumes sold of Pulp. Nevertheless, this was partially offset by the lower volumes reached by the Forestry and Paper Products businesses. Regarding Forestry volumes, the decrease was mainly explained by a delay in a sawn wood shipment, while in the case of Paper Product’s volumes the decrement was attributable to the seasonality of the fruit export business in Chile.
Sales Breakdown Analysis to Third Parties
Total Revenues Evolution 1,125 1,007 819
3Q09
2Q10
3Q10
CMPC’s consolidated EBITDA reached US$322 million, 15% above than 2Q10’s EBITDA. This growth is mainly explained by the higher EBITDA of the Forestry, Pulp, Paper and Tissue divisions. Nevertheless, this was partly offset by a decrease in the EBITDA of the Paper Products business.
EBITDA Variation by Business
EBITDA Evolution 322 281
164
3Q09
2Q10
3Q10
Net Income during the quarter reached US$254 million, a 107% higher than that of 2Q10. This increase was mainly explained by the higher level of EBITDA, as well as a US$50 million advance payment received from insurance companies corresponding to business interruption claims due to the earthquake. All the above was partially offset by an inferior Net biological income, as well as a higher Price level restatement adjustment.
Net Income Evolution
Net Income Analysis
254
123 63
3Q09
Forestry
2Q10
Pulp
3Q10
Papers
Tissue
Paper Products
3
3
3Q10
Income Statement Analysis Sales to Third Parties Breakdown by Destination FORESTAL
A breakdown of CMPC’s sales to third parties by destination during 3Q10 shows that 53% of the sales correspond to exports, 21% to the domestic market in Chile and 26% to domestic markets of foreign subsidiaries. During 3Q10, export sales increased their contribution to CMPC’s consolidated sales, when compared to that of 2Q10. This was mainly explained by the normalization in export levels after the earthquake that affected Chile, especially those of Pulp, Forestry and Papers. Moreover, foreign subsidiaries sales have been increasing its participation in total sales during the last years. 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 3Q10 shows that the Pulp and Tissue businesses contributed with 34% and 32% of total revenues, followed by Paper contributing with 17% of total sales. Finally, the Forestry and Paper Products divisions represented 10% and 7% of total revenues respectively. It is important to note that Pulp sales did not exceed Tissue sales since 2Q08. CMPC’s EBITDA breakdown by business for 3Q10 shows that the Forestry division experienced a sharp increase in its contribution to consolidated EBITDA. This was mainly explained by a raise in its sales, as well as the lower costs reached, in response to the higher level of efficiency in the handling of wood, as well as the better productivity and lower freight costs registered during the quarter. During 3Q10, Tissue’s EBITDA remained almost unchanged despite the increase registered in its sales. This was partially explained by the start up of the Colombian and Mexican projects, which implied specific marketing and distribution costs to prepare the market for the entrance of the new capacity. On the other hand, the EBITDA of the Pulp and Forestry divisions were benefited by the higher level of sales registered during 3Q10. Finally, Paper Products’ EBITDA decreased in two points its contribution to total EBITDA, mainly explained by the seasonality of the fruit export business in Chile.
2Q10 Sales Breakdown by Business Area Paper Prod. 8%
3Q10 Sales Breakdown by Business Area Paper Prod. 7%
Forestry 11%
Tissue 32%
Tissue 32%
Pulp 32%
Pulp 34%
Papers 17%
Papers 17%
2Q10 EBITDA Breakdown by Business Area
Tissue 14%
.
Paper Prod. 4%
3Q10 EBITDA Breakdown by Business Area
Tissue 13%
Forestry 9%
Pulp 62%
Forestry
Paper Prod. 2%
Forestry 14%
Papers 13%
Papers 11%
4
Forestry 10%
Pulp
Pulp 58%
Papers
Tissue
Paper Products
3Q10
Income Statement Analysis
The Forestry and solid wood business registered a 6% increase in sales (+US$6 million) during this period when compared to those of 2Q10. This was mainly explained by a 13% increase in sale prices. Nevertheless, this was partially offset by a 6% reduction in sale volumes. This was the case of sawn wood (-11%), which suffered a delay in one of its shipments with destination to Asia. On the other hand, plywood (-6%) and sawing logs (-4%) also registered a decrease in volumes. All the above was partially reversed by a 22% and 8% increase in remanufactured and pulpwood sale volumes.
FORESTRY
∆% Sales: +6% ∆% Volumes: -6% ∆% Price: +13%
Pulp sales increased by 18% (+US$59 million) during 3Q10 when compared to those of 2Q10, which was mainly due to a 23% increase in CMPC’s sale volumes. Nevertheless, this effect was partially offset by a 4% reduction in pulp average effective price (including the sales of P&W integrated papers). Hardwood volumes increased 27%, while those of softwood increased by 17%. All the above is mainly explained by the normalization of the pulp business activity after the earthquake. It is important to highlight that during 3Q10 there were recognized the volumes of a delayed vessel, which was supposed to reach Europe during 2Q10. This resulted in a 27% increase in hardwood volumes delivered to that continent during 3Q10. Average effective price reached CIF 820 US$/ton and CIF 786 US$/ton for softwood and hardwood respectively. During this period, the spread between both fibers reached CIF 34 US$/ton.
PULP
∆% Sales: +18% ∆% Volumes: +23% ∆% Price: -4%
Paper business during 3Q10 registered a 13% increase (+US$21 million) in consolidated sales, when compared to those of 2Q10. This was mainly explained by the higher prices and sale volumes reached during the quarter. It is important to note the positive effect of the normalization in the level of activity after the earthquake in all papers grades production.
PAPERS
A breakdown of the different paper grades in this business shows that newsprint volumes registered a 20% increase when compared to those of 2Q10. Additionally, prices raised by 9%, following the upward trend registered in foreign markets since January 2010. On the other hand, boxboard prices increased 5% when compared with those of 2Q10, mainly driven from the higher demand coming from certain markets such as Brazil. Moreover, sale volumes were up by 4%. Finally, packaging paper sale volumes were down by 12% compared to those of the previous quarter. Average sale price increased 20% when compared to that of the previous quarter.
∆% Sales: +13% ∆% Volumes: +2% ∆% Price: +10% TISSUE
∆% Total Sales: +11% ∆% Volumes: Paper:+8%/Diapers&FCP:+6% ∆% Price: Paper: +2%/Diapers&FCP:+8%
Paper products business during 3Q10 registered a 4% decrease (-US$4 million) in sales compared to those of 2Q10. This decrement is mainly attributable to a 15% reduction in sale volumes. This is mainly due to the seasonality of the fruit export season in Chile, which meant a reduced demand for fruit boxes during this quarter. Because of this, demand for corrugated boxes decreased by 21% when compared to that of 2Q10. Nevertheless, if we compared volumes reached during the quarter with those showed in 3Q09, we can appreciate a 3% increment. On the other hand, molded pulp trays volumes were down by 46%, due to a reduction in apple exports. Finally, paper bags volumes increased 16%. This was mainly explained by the higher domestic sales volumes reached by the subsidiaries in Mexico (+51%), Peru (+15%) and Argentina (+7%). Average selling price recorded an increment of 14%, when compared to that of the previous quarter.
PAPER PRODUCTS
∆% Sales: -4% ∆% Volumes: -15% ∆% Price: +14%
Forestry
Tissue business, including operations in Chile, Argentina, Peru, Uruguay, Mexico, Colombia, Ecuador and Brazil, showed an 11% increase in sales (+US$35 million) during 3Q10, when compared to those of 2Q10. This was mainly explained by the higher production showed by foreign subsidiaries, especially those of Mexico and Colombia, as a consequence of the start up of new projects in both markets. During the quarter, volumes of tissue paper products were up by 8%, whereas those of diapers and feminine care products increased by 6%. Finally, average sale price (measured in US Dollars) increased 2% in the case of tissue paper; whereas those of diapers & feminine care products increased 8%, when compared to those of 2Q10. This was mainly explained by the local currencies appreciation, which increased tissue prices when measured in US Dollars.
Pulp
Papers
Tissue
Paper Products
5
3Q10
Income Statement Analysis
Operating costs excluding depreciation, stumpage and decrease due to harvest amounted to US$667 million, 12% higher than those of 2Q10. At a consolidated level, Operating costs in 3Q10 were 59% of total sales, remaining at the same percentage than that of 2Q10. Other operating expenses reached US$135 million, 4% higher than that of 2Q10. This was mainly explained by the raise in Administration costs and Other operational expenses. This account represented 12% of total sales, one point lower than that recorded in 2Q10. Financial expenses during 3Q10 increased 5% when compared with those of 2Q10, in response to the higher level of debt reached by the Company. On the other hand, CMPC’s Financial Income registered a 120% increment when compared to that of 2Q10, totaling US$4 million. This was mainly explained by the higher level of cash handled by CMPC. Moreover, during this period there were higher Share results in associated companies. Regarding Exchange rate differences, the depreciation of the dollar against the Chilean peso had negative results during 3Q10, registering a US$22 million loss. Price level restatement is caused by the variation experienced by the balance sheet accounts registered in UF (or Unidades de Fomento). The US$6 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$33 million gain was recognized under this account. It is important to highlight that during the quarter, a US$50 million advance payment was received from insurance companies corresponding to business interruption claims due to the earthquake. With the information available as of today, the management estimates that the balance of the compensation to be received from insurance companies regarding business interruption, should reach an amount close to US$75 million. Income taxes for the period implied a US$22 million gain, registering an US$73 million increment when compared with that of the previous quarter. This was mainly due to the positive variation resulting from the Price level restatement effect arising from Deferred taxes, because of the US Dollar depreciation.
6
Forestry
Pulp
Papers
Tissue
Paper Products
3Q10
Balance Sheet Analysis th
th
As of September 30 2010, Current assets registered a 15% increase when compared with those as of June 30 , 2010. It is important to note that the Cash and cash equivalents account showed a 13% increment, as a consequence of the higher operational cash flows, as well as the advance payment received from insurance companies as a consequence of business interruption effects. On the other th hand, Non current assets remained stable when compared to those as of June 30 , 2010. th
Current liabilities were up by 8% when compared with those as of June 30 , 2010. This was mainly explained by the increment registered in the Operative receivables account. On the other hand, Non current liabilities presented a 1% increase when compared th with those as of June 30 , 2010. th
CMPC’s financial debt stood at US$2,889 million as of September 30 2010, showing a US$149 million increment when compared to th that as of June 30 , 2010. This was mainly explained by the higher level of indebtedness reached by some of the foreign subsidiaries, as well as the negative effect of the dollar depreciation in loans denominated in local currencies. On the other hand, CMPC’s net th financial debt reached US$2,248 million as of September 30 2010, registering an increase of US$73 million when compared to that th as of June 30 , 2010. It is important to highlight that CMPC closed the quarter with US$641 million of cash. On the other hand, the Net financial debt/EBITDA ratio registered a QoQ variation from 2.5 to 2.2 times, mainly explain by the higher EBITDA generation. Moreover, the financial coverage ratio also showed a favorable financial evolution during the quarter, when compared to that observed in 2Q10. As of the end of 3Q10, 69% of CMPC’s debt was denominated in USD, 21% was denominated in Chilean pesos (or Unidades de Fomento) and the balance in other local currencies. On the other hand, 80% of CMPC’s total financial debt has a fixed interest rate, whereas the balance has a floating interest rate. th
Debt Breakdown as of September 30 , 2010 (i) (ii) (iii) (i) (ii) (iii)
In Million US$
2Q10
3Q10
∆% QoQ
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)
476 2,533 (43) (68) (3) (6)
4% 6% -2% 93% -71% -73%
Total Debt ( (i) + (ii) + (iii) + (iv) + (v) + (vi) )
2,740
2,889
5%
565
641
13%
Net Debt
2,175
2,248
3%
Average Cost of Debt
4.6%
4.4%
-0.2%
Cash and Cash Equivalents
th
Amortization Schedule as of September 30 , 2010
Financial Ratios Evolution
493 326
282
299
249 172
135
90 2010
363
2011
2012
2013
2014
2015
2019
2027
2030
Shareholders’ Equity presented a US$280 million increase when compared to that of 12Q10. This is mainly due to the higher Retained Earnings registered during the quarter, as well as the superior Other reserves.
Forestry
Pulp
Papers
Tissue
Paper Products
7
3Q10
Relevant Events
8
•
During the quarter, a new tissue paper machine started operations in Mexico: in August, the third tissue paper machine of the Altamira mill started its productive operations. This machine, which implied a total investment of US$60 million, has a total production capacity of 50 thousand tons of tissue paper per year. As a result, the Altamira mill reached a total capacity of aproximally 90 thousand tons of tissue paper per year.
•
During the quarter, a new tissue paper machine started operations in Gachancipá, Colombia: in August, the first CMPC tissue paper machine started operating at the new Gachancipá mill in Colombia. This facility, which implied a total investment of approximally US$70 million, has a total production capacity of 27 thousand tons of tissue paper per year.
•
CMPC approves the construction of a new tissue paper machine in Chile: CMPC’s board approved the construction of a new double width tissue paper machine in the Talagante mill, Chile. This new machine implies a total investment of approximally US$70 million for 50,000 tons of production capacity per year. This project should start operations in 1H12. With this investment, the Chilean installed capacity will reach close to 170,000 tons of tissue paper per year.
•
Publication of CMPC’s Sustainable Development Report: On September 30th, CMPC published the sixth 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, at CMPC’s web site (www.cmpc.cl).
•
A CLP$120 (US$0.25) cash dividend was announced: CMPC’s board approved in November a CLP$120 dividend to be nd paid on each outstanding share. This dividend will be distributed on December 22 , 2010.
Forestry
Pulp
Papers
Tissue
Paper Products
3Q10
Consolidated Balance Sheet
2009 1Q09
Figures in Th. US$*
2Q09
2010 3Q09
4Q09
1Q10
2Q10
3Q10 3Q10
4Q10
QoQ
YoY
Current Assets Cash and Cash Equivalents Operative Receivables Inventories Biological Assets Tax Assets Other Current Assets
2,261,127 534,976 647,847 737,341 173,246 65,847 101,870
2,205,876 576,466 615,483 672,353 183,810 75,502 82,262
2,469,957 846,121 618,466 683,283 184,022 47,078 90,987
2,601,632 761,487 694,044 747,318 169,195 121,080 108,508
2,410,878 661,744 703,626 722,127 157,499 64,329 101,554
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
15%
18%
13%
-24%
13%
45%
12%
29%
Non Current Assets Intangible Assets, Different from Goodwill Goodwill Property, Plant and Equipment, Net Biological Assets Deferred Tax Assets Other Non Current Assets
7,782,718 89,283 4,948,937 2,561,814 66,143 116,541
7,910,034 4,898 85,052 4,968,901 2,557,026 79,770 214,387
8,088,879 5,064 163,729 5,141,221 2,560,838 85,219 132,808
9,507,385 113,499 139,540 5,985,334 2,990,507 110,624 167,881
9,796,378 92,991 198,736 6,057,860 3,115,910 156,794 174,086
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
0%
21%
30%
2356%
2%
42%
10,043,845
10,115,910
10,558,836
12,109,017
12,207,256
12,322,086
12,732,523
3%
21%
795,415 352,219 335,021 108,175
859,749 466,674 297,732 95,343
848,277 367,085 375,953 105,239
1,132,576 472,973 453,746 205,857
1,065,965 472,208 429,293 164,464
1,214,397 487,455 502,444 224,498
1,311,004 513,857 571,905 225,242
8%
55%
2,684,265 1,658,010 970,997 55,258
2,689,374 1,621,404 951,040 116,930
3,103,706 1,868,071 948,056 287,579
3,718,348 2,516,940 953,114 248,294
3,829,768 2,487,931 1,096,927 244,910
3,726,105 2,395,293 1,092,689 238,123
3,758,762 2,533,938 949,857 274,967
153,567
153,675
153,768
157,648
157,508
158,321
TOTAL ASSETS Current Liabilities Other Financial Liabilities Operative Liabilities Other Current Liabilities Non Current Liabilities Other Financial Liabilities Deferred Tax Liabilities Other Non Current Liabilities Non Controlling Participations Equity Attributable to the Owners of the Controller TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
12%
8%
27%
142%
49%
114%
-37%
-
1%
19%
0%
20%
17%
58%
5%
40%
14%
52%
0%
114%
1%
21%
6%
36%
-13%
0%
15%
-4%
159,649
1%
4%
6,410,598
6,413,112
6,453,085
7,100,445
7,154,015
7,223,263
7,503,108
4%
16%
10,043,845
10,115,910
10,558,836
12,109,017
12,207,256
12,322,086
12,732,523
3%
21%
* 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
3Q10
Consolidated Income Statement
2009 1Q09
Figures in Th. US$
Sales Operating Costs (1)
2Q09
2010 3Q09
4Q09
1Q10
2Q10
3Q10 3Q10
QoQ
YoY
12% 12%
37% 24%
11%
62%
4%
15%
698,394 (489,543)
691,295 (460,459)
819,150 (536,563)
914,770 (579,299)
208,851
230,836
282,587
335,471
333,867
410,981
(69,544)
(100,974)
(118,115)
(125,556)
(101,005)
(130,024)
(135,284)
EBITDA(3) EBITDA Margin (%)
139,307 20%
129,862 19%
164,472 20%
209,915 23%
232,862 25%
280,957 28%
322,416 29%
15% 1%
96% 9%
Depreciation and Stumpage Increase in Biological Assets due to Forests Growth and Price Effects Decrease in Biological Assets due to Harvest
(75,583) 49,105 (32,513)
(78,517) 38,318 (34,315)
(81,551) 38,318 (35,853)
(91,179) 54,815 (26,050)
(96,183) 56,335 (24,263)
(96,151) 72,061 (50,895)
-8% -20% 0%
8% 585% 0%
80,316
55,348
85,385
147,501
168,750
(88,092) 63,360 (46,473) ######### 205,973 251,211
0%
0%
(18,410) 3,289 2,968 (38,943) 9,372 (12,320) 27,121
(21,905) 2,812 6,805 (41,213) 1,940 (7,207) 31,541
(29,446) 1,968 3,486 17,719 2,702 (734) (17,638)
(33,850) 2,608 3,991 710 (3,061) (35,164) 40,528
(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
120% 187% -471% -28% -2227% -143% 0%
116% 85% -223% -309% -4549% -223% 0%
53,393
28,119
63,442
123,263
80,222
123,126
254,370
0%
0%
Operating Margin Other Operating Expenses
(2)
Operating Income Financial Expenses Financial Income Share Results in Associated Companies Exchange Rate Differences Price Level Restatement Other Gains (Losses) Income Taxes Net Income
937,568 1,006,624 1,124,584 (603,701) (595,643) (666,884)
4Q10
457,700
(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
3Q10
Consolidated Cash Flow Statement
2009 1T09
2010 2T10
3T10
263,312 0 0
179,015 0 0
177,622 0 0
199,608
12%
-24%
28,120 (31,541) 66,201 0 31,038 (60,313) (6,805) 133,031 28,763 (799) 0 0 (167,206) 0
63,442 17,638 70,889 0 (14,324) (49,753) (3,486) 68,031 100,953 9,922
80,222 32,885 84,139 0 242 (32,072) (3,750) 78,923 (48,971) (12,603) 0 0 (215,501) 0
123,126 50,881 84,229 12,465 1,937 (127,848) (2,244) 139,340 (109,283) 5,019 0
254,370 (21,686) 73,370 4,942 27,503 (45,066) (6,449) 41,380 (111,669) (17,087)
107% -143% -13% -60% 1320% -65% 187% -70% 2% -440%
301% -223% 3% -292% -9% 85% -39% -211% -272%
(137,216) 0
0
0%
0%
0 0 (57,365) 0 (2,762) 0 2,784 0 0 269,672 0 0 361,840 141,485 503,325 (199,573) (16,213) (17,867) 0
(101,960) 276 (74,611) (10,130) 12,188 1,925 5,106 0 0 (3,777) 0 0 44,018 59,923 103,941 (60,181) (30,523) (17,014) 0
2 (74,313) (17,442) 5,821 1 3,604 0 0 0
0 95 (66,516) (54,936) 8,491 5,408 1,496 (31,254) 0 (119,071) 0 0 0 69,935 69,935 (113,982) (32,551) (34,416) (8,057)
(7,889) (95,884) (34,887) (10,315) 0 8,378 (31,485) 0
0 0 0 358,435 358,435 (248,554) (17,307) (28,760) 0 0
(78,000) 12,818 (165,702) 0 12,430 0 2,953 0 0 (44,530) 0 0 0 29,289 29,289 (37,848) (18,775) (17,196) 0
0
0%
0%
258,750 258,750 (201,198) (35,311) (32,735) 8,057 0
270% 270% 77% 8% -5% -200% 0%
-28% -28% -19% 104% 14% 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
302,084 12,711 220,181
16,712 24,778 534,976
297,014 (27,359) 576,466
(81,016) (18,727) 761,487
(78,665) (17,629) 661,744
25,090 50,824 565,451
-132% -388% -15%
-92% -286% -2%
Cash and Cash Equivalents at the End of the Period
534,976
576,466
846,121
661,744
565,451
641,364
13%
-24%
Cash Flow from Operating Activities 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 Derivative Contracts, Options and Swap Charges Dividends Received Interests Received Other Entries (Egresses) of Cash Cash Flow from Financing Activities Proceeds form the Issuance of Short Term Debt Proceeds form the Issuance of Long Term Debt Total Proceeds form the Issuance of Debt Payments of Loans Dividends Paid Interest Paid Other Entries (Egresses) of Cash
Forestry
Pulp
2T09
3T09
89,755 0 0
187,695 0 0
53,393 (27,121) 65,664 0 29,571 (16,592) (2,968) 30,838 (29,606) (13,424) 0 0 (57,343) 0
Papers
4T09
3Q10
1T10
Figures in Th. US
0 0
Tissue
4T10
Paper Products
ToT
AoA
-8404% -394550% 44% 29% -36% 100% -221% -277% -100% -100% 460% 132% 1% 0% 0%
11
3Q10
Sale Volumes
Domestic Sales(1)
(Th. m3ssc)
Forestry and Wood Products Sawnwood, Remanufactured Wood & Plywood Pulp
(Th. Tons)
Packaging, Printing & Writing Paper, Newsprint and Boxboard (Th. Tons) Boxboard Newsprint Tissue Paper
(Th. Tons)
Paper Products
(Th. Tons) Corrugated Boxes
3Q10 ∆%Q/Q ∆%Y/Y
Total Sales
Exports
3Q09
2Q10
3Q10
3Q09
2Q10
3Q10
3Q09
2Q10
3Q10
546 0 60 0
618
550
210
225
775
51
210
225
762 0 276 0
828
82
216 0 216 0
292
276
17 0 50 14 10 0
34
33
442
131 79 38
137 84 43
377 0 178 90 54 0
386
86 16 8
359 0 128 75 44 0
353
87 17 5
218 96 43
114
122
1
0
70 49
58 39
5 2
5 2
110 0 59 39
109 0 53 38
1 0 6 1
475
-6% 0% -5% 0% 23% 0%
2% 0% 0% 0% 26% 0%
223 100 51
2% 4% 20% 0%
25% 11% -5% 0%
114
123
74 51
63 40
8% 0% -15% -21%
12% 0% 6% 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 Pulp
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