Empresas CMPC S.A. Third Quarter 2011 Results November, 2011
3Q11
New Tissue paper machine, Santa Anita Peru – start up August 2011
3Q11 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: Monday, November 07 , 12:15 PM Santiago de Chile’s Time US Toll Free: (+1 888) 419 5570 International Dial: (+1 617) 896 9871 Password: 757 722 95
3Q11
3Q11 in Brief
During the quarter, CMPC registered an increase in its sales and a decrease in EBITDA when compared with those reached in the second quarter of the present year. The increase in sales is mainly explained by higher sale volumes in the Forestry, Pulp, Papers and Tissue business divisions, and the decrease in EBITDA was due to lower prices in pulp and to a higher pressure in costs. Moreover, hardwood and softwood volumes showed an increase due to a bigger demand in Asia and Latin America. On the other hand, pulp prices decreased by 8% and 10% for softwood and hardwood respectively.
CMPC’s consolidated sales for 3Q11 reached US$1,228 million, registering a 2% increase when compared to those of 2Q11. During the quarter sale volumes increased in all business areas, except for those of Paper Products. On the other hand, there were lower sale prices in all divisions, except for those of Paper Products. Consolidated EBITDA reached US$278 million during 3Q11, showing an 8% decrease when compared to that of 2Q11. This is mainly explained by lower prices, especially in softwood and hardwood, and by an increase in operation costs. As a result, the EBITDA margin declined from 25% to 23%. CMPC registered a Net Income of US$109 million during 3Q11, showing a 36% decrement when compared to that of 2Q11. This is mainly explained by the higher Income taxes recorded during the quarter, as well as the fall in the "Foreign Exchange Difference" acount because of the Dolar apreciation. CMPC’s net debt as of the end of 3Q11 stood at US$2,354 million, presenting a US$9 million decrease when compared to that as of June 30st, 2011. Total debt stood at US$3,131 million, presenting an US$182 million decrement. All the above let CMPC to close the quarter with US$777 million of cash* (*defined as: cash and cash equivalents + term deposits within 90 to 360 days of maturity).
Key Figures Δ%Q/Q Δ%Y/Y
FY 2010
FY 2011
Δ%Y/Y
9% -14% -6% -57%
3.069 836 27% 458
3.668 899 24% 421
20% 7% -3% -8%
-9%
48%
422
572
36%
13.181 2.354 7.553
-4% 0% -36%
4% 5% -36%
12.876 2.185 11.699
13.181 2.354 7.553
2% 8% -35%
521,76 471,07
11% 0%
8% -6%
521,76 520,29
468,15 474,07
-10% -9%
US$ Million
3Q10
2Q11
3Q11
Sales EBITDA EBITDA Margin Net Income
1.125 322 29% 254
1.199 303 25% 170
1.228 278 23% 109
2% -8% -3% -36%
131
213
193
Total Assets Net Debt Market Capitalization
12.733 2.248 11.839
13.668 2.362 11.712
Closing Exchange Rate Average Exchange Rate
483,65 503,17
468,15 469,25
CAPEX
2
Forestry
Pulp
Papers
Tissue
Paper Products
3Q11
Income Statement Analysis
Total revenues reached US$1,228 million during the quarter, a 2% higher when compared to those of 2Q11. During the quarter, the sale volumes increased in all business divisions, except those of Paper Products. Forestry volumes increased due to higher sales of sawnwood and pulpwood logs. Pulp volumes were up due to the higher exports to China and Latin America in hardwood and to Asia in softwood. In the Paper business as well as in the Tissue business, the increments in volumes are explained by the higher sales in newsprint, folding boxboard, tissue paper and diapers. Finally, the lower volumes in Paper Products are 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. In terms of prices, they were lower in all business areas, except for those of Paper Products. The bigger decrement was in softwood and hardwood, their prices fell 8% and 10% due to the uncertain global escenary. In the case of Forestry, Papers and Tissue, their prices were down marginally. Finally, Paper Products division showed higher prices principally explained by increments in the Chilean market and in foreign subsidiaries of multiwall bags.
Sales Breakdown Analysis to Third Parties
Total Revenues Evolution
1.125
1.199
= Δ Prices
1.228
+27
+15
= Δ Volumes
+2
+37
+4
-1
-1
-16
-3
-34
1.228
1.199
3Q10
2Q11
3Q11 Sales 2Q11
Forestry (0) 3 +3
(34)Pulp 37 +3
(1)Papers 15 +14
(3)Tissue 27 +23
2 Paper (16) Prod. -14
Sales 3Q11
CMPC’s consolidated EBITDA reached US$278 million, 8% lower than 2Q11’s EBITDA. This decrement is mainly explained by the lower EBITDA of the Pulp, Paper Products divisions. Nevertheless, this was partly offset by an increase in the EBITDA of the Forestry and Paper businesses.
EBITDA Variation by Business
EBITDA Evolution 322 303
278
3Q10
2Q11
3Q11
Net Income during the quarter reached US$109 million, a 36% inferior than that of 2Q11. This decrement is mainly explained by the lower EBITDA and by the decrease of the assets in foreign currencies, because of the Dolar appreciation. This implied a decrease in Forex difference from US$16 million in 2Q11 to - US$19 million in 3Q11.
Net Income Evolution
Forestry
Pulp
Net Income Analysis
Papers
Tissue
Paper Products
33
3Q11
Income Statement Analysis Sales to Third Parties Breakdown by Destination FORESTAL
A breakdown of CMPC’s sales to third parties by destination during 3Q11 shows that 48% of the sales correspond to exports, 23% to the domestic market in Chile and 29% 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 3Q11 shows that the Tissue and Pulp businesses contributed with 35% and 31% of total revenues, followed by Paper contributing with 17% of total sales. Finally, the Forestry and Paper Products divisions represented 17% of total revenues. CMPC’s EBITDA breakdown by business for 3Q11 shows that the Pulp and Paper Products divisions decreased their EBITDA when compared to that of the previous quarter. This is mainly explained by a decrement in prices in the Pulp division and lower sales in Chile in Paper Products business. On the other hand, the Forestry and Papers divisions showed an increment on its EBITDA during the third quarter of the year. In Forestry, the increment is mainly explained by the higher volumes of sales and the better sale prices of sawnwood and chips. For Papers, the increment in EBITDA is consequence of the higher sales due to higher volumes and better prices in the export of newsprint and folding boxboard. In the Tissue division, the EBITDA was practically the same that the previous quarter.
4
2Q11 Sales Breakdown by Business Area
3Q11 Sales Breakdown by Business Area
2Q11 EBITDA Breakdown by Business Area
3Q11 EBITDA Breakdown by Business Area
Forestry
Pulp
Papers
Tissue
Paper Products
3Q11
Income Statement Analysis
The Forestry and solid wood business registered a 2% increase in sales (US$3 million) during this period when compared to those of 2Q11, driven by a 3% increase in sale volumes, given by increments in pulpwood (23%), sawing logs (6%) and plywood (8%). On the other hand, remanufactured wood decreased their volumes by 11% and sawnwood remained the same.
FORESTRY
As for the average price, there wasn´t any change comparing this quarter with the previous one. Δ% Sales: +2% Δ% Volumes: +3% Δ% Price: 0%
Pulp sales increased by 1% (US$3 million) during 3Q11 when compared to those of 2Q11. This is mainly explained by an 11% and 12% increment in hardwood and softwood respectively. Complementing the above, during this quarter, export volumes of hardwood and softwood to China increased by 51% and 24% respectively. On the other hand, in the third quarter of the present year pulp registered a decrement of 8% on the effective average price (including the sales of P&W integrated papers).
PULP
Average effective price reached CIF 810 US$/ton for softwood and CIF 674 US$/ton for hardwood. During this period, the spread between both fibers reached CIF 136 US$/ton, 3% more than the previous quarter.
Δ% Sales: +1% Δ% Volumes: +10% Δ% Price: -8%
Paper business during 3Q11 registered a 7% increase (US$14 million) in consolidated sales, when compared to those of 2Q11, because all of its products improved their sales.
PAPERS
If we analyze each of the papers business, newsprint volumes registered a 20% increment when compared to those of 2Q11 and prices were up due to better export rates. On the other hand, boxboard prices increased 1% when compared with those of 2Q11, mainly driven by the higher demand coming from certain markets such as Brazil and Argentina. Sale volumes were up by 2%. Finally, packaging paper sale volumes increased by 19% compared to those of the previous quarter and the average price remained the same than the previous quarter. Δ% Sales: +7% Δ% Volumes: +8% Δ% Price: 0% TISSUE
Δ% Total Sales: +6% Δ% Volumes: Paper: +6% / Diapers&FCP: +8% Δ% Price: Paper: -1% / Diapers&FCP: +1%
Tissue business, including operations in Chile, Argentina, Peru, Uruguay, Mexico, Colombia, Ecuador and Brazil, registered a 6% increment in its sales (US$23 million) during 3Q11, when compared to those of 2Q11. Tissue paper volumes showed a 6% increment mainly due to the advance in the operation learning curve at the Colombian and the Mexican projects and to the initiation of new machines in Brazil and Peru. Moreover, sanitary products increased their volumes in 8% 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 1% in the case of diapers & feminine care products; whereas those of tissue paper decreased by 1% when compared to those of 2Q11.
Paper products business during 3Q11 registered a 14% decrement (US$14 million) in sales compared to those of 2Q11. 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 an 18% and 52% 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 2%. The average selling price registered an increment of 2%.
PAPER PRODUCTS
Δ% Sales: -14% Δ% Volumes: -16% Δ% Price: +2%
Forestry
Pulp
Papers
Tissue
Paper Products
5
3Q11
Income Statement Analysis
Operating costs excluding depreciation, stumpage and decrease due to harvest amounted US$794 million, 7% higher than those of 2Q11. At a consolidated level, Operating costs in 3Q11 were 65% of total sales, three points higher than that of 2Q11. Other operating expenses reached US$155 million, 2% higher than that of 2Q11. This is mainly explained by the increase in Other Expenses. This account represented 13% of total sales, the same than that of 2Q11. Financial expenses increased 5% during 3Q11 when compared with those of 2Q11. On the other hand, CMPC’s Financial Income registered a 16% decrement when compared to that of 2Q11, mainly explained by the lower amount of cash handled by the Company. During this period there were lower Share results in associated companies, which decreased 101%. Regarding Foreign Exchange differences, the appreciation of the closing Dollar against the Chilean peso had negative results during 3Q11, registering a US$14 million loss. These results are generated by the mismatch between assets and liabilities denominated in Chilean pesos and other currencies other than U.S. dollars (functional currency). Indexation Unit Results is caused by the variation experienced by the balance sheet accounts registered in UF (or Unidades de Fomento). The US$5 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$30 million gain was recognized under this account, due to the profit of operations with financial derivatives. Income taxes for the period implied a US$65 million expense, US$49 million higher than that of the previous quarter. This is mainly explained by the increment in deferred tax provision due to the depreciation of local currencies against the dollar. This depreciation reduces the tax base of assets measured in dollars and therefore increases the deffered taxes.
Consolidated Income Statement at September 30st, 2011 2010 3Q10
Figures in Th. US$
QoQ
YoY
2% 7%
9% 19%
454.590
433.288
-5%
-5%
(135.284)
(151.508)
(154.904)
2%
15%
322.416 29%
303.082 25,3%
278.384 22,7%
-8% -10%
-14% -21%
(104.049) 71.378 (47.352)
(103.772) 70.865 (47.519)
0% -1% 0%
18% 12% 2% -21%
Operating Margin
457.700
(88.092) Depreciation and Stumpage Increase in Biological Assets due to Forests Growth and Price 63.360 Effects (46.473) Decrease in Biological Assets due to Harvest
6
3Q11 1.227.646 -794.358
1.124.584 (666.884)
EBITDA(3) EBITDA Margin (%)
2Q11
3Q11
1.198.533 (743.943)
Sales Operating Costs(1)
Other Operating Expenses(2)
2011
Operating Income
251.211
223.059
197.958
-11%
Financial Expenses Financial Income Share Results in Associated Companies Foreign Exchange Difference Indexation Unit Results Other Gains (Losses) Income Taxes
(34.383) 4.254 6.449 (21.843) (5.660) 32.656 21.685
(40.433) 9.952 4.412 20.107 (3.925) (27.099) (16.565)
(42.373) 8.322 (42) (13.958) (5.261) 30.256 (65.693)
5% 23% -16% 96% -101% -101% -169% -36% 34% -7% -212% -7% 297% -403%
Net Income
254.370
169.508
109.209
-36%
Forestry
Pulp
Papers
Tissue
-57%
Paper Products
3Q11
Balance Sheet Analysis st
st
As of September 30 2011, Current assets registered a 5% decrement when compared with those as of June 30 , 2011, as a consequence of the lower investment in term deposits within 90 to 360 days of maturity, which are recognized under the account Other st financial assets. On the other hand, Non current assets decreased 3% when compared to those as of June 30 , 2011. st
Current liabilities were down by 1% when compared with those as of June 30 , 2011. On the other hand, Non current liabilities st presented a 3% decrement when compared with those as of June 30 , 2011. st
CMPC’s financial debt stood at US$3,131 million as of September 30 2011, showing a US$182 million decrement when compared to st st that as of June 30 , 2011. On the other hand, CMPC’s net financial debt reached US$2,354 million as of September 30 2011, st registering a decrement of US$9 million when compared to that as of June 30 , 2011. It is important to highlight that CMPC closed the quarter with US$777 million of cash. The Net financial debt/EBITDA ratio registered a QoQ variation from 1.90 to 1.96 times. The interest coverage ratio showed a favorable decrement during the quarter falling from 8.5 times to 8.0 times, when compared to that observed in 2Q11. Moreover, the Financial debt / Tangible net worth ratio showed a decrement from 0.43 to 0.41 times. At the end of 3Q11, 76% of CMPC’s debt was denominated in US$, 18% was denominated in Chilean pesos (or Unidades de Fomento) and the balance in other local currencies. On the other hand, 78% of CMPC’s total financial debt has a fixed interest rate, whereas the balance has a floating interest rate. st
Debt Breakdown as of September 30 , 2011
(i) (ii) (iii) (i) (ii) (iii)
In Million US$
3Q10
2Q11
3Q11 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
476 2.533 (43) (68) (3) (6)
521 2.931 (52) (90) 1,88 1,14
463 2.800 (51) (70) (3) (8)
-11% -4% -1% -23% -249% -789%
-3% 11% 18% 3% 0% 29%
Total Debt ( (i) + (ii) + (iii) + (iv) + (v) + (vi) )
2.889
3.313
3.131
-5%
8%
641
950
777
-18%
21%
Net Debt
2.248
2.362
2.354
0%
5%
Average Cost of Debt
4,4%
4,4%
4,5%
2%
2%
Cash*
*Cash and cash equivalents + Term deposits within 90 to 360 days of maturity
st
Financial Ratios Evolution
Amortization Schedule as of September 30 , 2011
314
374
372
497
498
2018
2019 Thereafter
452
352
202
46 2011
2012
2013
2014
2015
2016
Shareholders’ Equity presented a US$267 million decrease when compared to that of 2Q11. This is mainly due to the lower Other Reserves due to the negative change produced on reserves of exchange differences.
Forestry
Pulp
Papers
Tissue
Paper Products
7
3Q11
Relevant Events
Tissue machine expansion in Peru comes into operation: The expansion project of tissue paper in our tissue mill in Santa Anita, Peru, with a US$ 15 million investment, began operations on August 2011. New corrugated box mill comes into operation in Chile: The new mill located near Osorno, which involved an investment of US$ 23.2 million, started operating during 3Q11. Reconstruction of Constitución sawmill finishes and began its operation: The sawmill destroyed by the tsunami last year went into operation on August, with a US$ 11.6 million investment. st
CMPC board approved the merger between the subsidiary Inforsa and CMPC: On June 10 , 2011, CMPC board reported that the conditions of 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. Then, th on September 16 , 2011, was materialized the split of the shares of the company, where each share was exchanged by 10 new ones, without increasing the social capital.Thus, the capital came to be divided by 2,200 million shares. After that, on October 20th, 2011, Empresas CMPC subscribed 26,773,533 shares to pay Inforsa shareholders. Finally the merger was completed on October 30th, 2011. st
CMPC had an extraordinary bondholders meeting on 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. Inversiones CMPC sold its participation on Inversiones El Raulí: On July, 2011, CMPC approved the sale of the shares that Inversiones CMPC owns of Inversiones El Raulí, at approximately US$ 43.9 million. This will mean a financial profit of approximately US$ 6.1 million for CMPC. Inversiones CMPC signed a bank loan for US$600 millions: On October 14th, 2011, Empresas CMPC, through its subsidiary Inversiones CMPC S.A., subscribed a $600 million credit facility in two tranches: th
US$ 400 million, totally received on October 19 , for a period of five years with 4 semiannual amortizations starting on month 42 acruing an annual interest of Libor + 0.65%. US$ 200 million, that corresponds to a commited line freely available for 3 years and if is used at the end of the period, it will have 4 semiannual amortizations starting on month 42 acruing an annual interest of Libor + 0.70%. The loan was led by: Bank of Tokyo-Mitsubishi UFJ, Bank of America Merrill Lynch, Export Development Canada, JPMorgan and Scotiabank. And is also integrated: Banco Santander, Citibank, Deutsche Bank, HSBC and Nordea.
8
Forestry
Pulp
Papers
Tissue
Paper Products
3Q11
Consolidated Balance Sheet
2010 1Q10
Figures in Th. US$*
2011
2Q10
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
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
TOTAL ASSETS
Non Controlling Participations Equity Attributable to the Owners of the Controller TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
2Q11 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
3Q11 3Q11 3.276.351 367.590 968.372 1.016.476 216.305 141.273 566.335 9.904.984 10.568 155.811 6.253.094 3.193.798 136.702 155.011 13.181.335 1.314.945 482.552 595.650 236.743 4.062.302 2.799.759 986.763 275.780 5.493 7.798.595 13.181.335
4Q11
QoQ
YoY
-5%
12%
6%
-43%
-5%
8%
2%
15%
-3%
9%
-3%
24%
-23%
191%
-3%
1%
-9%
-92%
-8%
-
-3%
2%
-1%
4%
-8%
1%
-23%
-18%
-4%
4%
-6%
0%
-15%
-6%
-3%
4%
8%
5%
-3%
8%
-5%
10%
3%
4%
-11%
0%
-95%
-97%
-2%
4%
-4%
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
3Q11
Consolidated Income Statement
2010 1Q10
Figures in Th. US$
Sales Operating Costs (1)
2Q10
2011 3Q10
4Q10
1Q11
937.568 (603.701)
1.006.624 (595.643)
1.124.584 (666.884)
1.150.396 (705.812)
333.867
410.981
457.700
444.583
454.893
(101.005)
(130.024)
(135.284)
(143.041)
EBITDA(3) EBITDA Margin (%)
232.862 25%
280.957 28%
322.416 29%
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)
Operating Income
168.750
Financial Expenses Financial Income Share Results in Associated Companies Foreign Exchange Difference Indexation Unit Results Other Gains (Losses) Income Taxes
Operating Margin Other Operating Expenses
(2)
Net Income
2Q11
3Q11 3Q11
4Q11
1.241.629 1.198.533 1.227.646 (786.736) (743.943) (794.358)
9% 19%
-5%
-5%
(137.841)
(151.508)
(154.904)
2%
15%
301.543 26%
317.052 26%
303.082 25,3%
278.384 23%
-8% -10%
-14% -21%
(88.092) 63.360 (46.473)
(106.300) 38.605 (49.356)
(100.644) 57.481 (44.428)
(104.049) 71.378 (47.352)
(103.772) 70.865 (47.519)
0% -1% 0%
18% 12% 2%
205.973
251.211
184.492
229.461
223.059
197.958
-11%
-21%
(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)
(42.373) 8.322 (42) (13.958) (5.261) 30.256 (65.693)
80.222
123.126
254.370
182.304
142.622
169.508
109.209
(3) EBITDA is calculated as: Sales minus Operating Costs minus Other Operating Expenses
Pulp
2% 7%
433.288
(2) Other Operating Expenses are calculated as: Distribution Costs plus Administration Expenses plus Other Functional Expenses
Forestry
YoY
454.590
(1) Operating Expenses are calculated as: Costs of Sales minus Stumpage minus Decrease in Biological Assets due to Havest minus Depreciation
10
QoQ
Papers
Tissue
Paper Products
5% 23% -16% 96% -101% -101% -169% -36% 34% -7% -212% -7% 297% -403% -36%
-57%
3Q11
Consolidated Cash Flow Statement 2010 1Q10
Figures in Th. US
Cash Flow from Operating Activities
179.015 0 0 80.222 32.885 84.139 1.617 242 (78.736) 0 120.220 (48.971) (12.603) 0 (258.568) 0
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 Cash flows from loss of control of subsidiaries or other businesses 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
2Q10
2011 3Q10
182.027 195.203 0 0 123.126 254.370 50.881 (21.686) 84.229 73.370 10.848 4.942 1.935 27.505 (76.114) (50.136) (5.994) 5.994 86.352 40.628 (98.255) (122.697) 5.019 (17.087)
4Q10 233.064 182.304 13.294 83.083 10.240 15.228 (43.249) (17.480) 39.629 (44.701) (5.284)
(33.372) 0 (232.858) (375.641)
3Q11
2Q11
3Q11
196.217
219.596
169.508 16.566 83.555 7.868 (16.182) (56.814) (7.958) 94.212 (20.537) (74.001)
109.209 65.693 82.986 4.622 19.219 (98.801) 42 95.412 (31.355) (27.431)
-36% -57% 297% -403% -1% 13% -41% -6% -219% -30% 74% 97% -101% -99% 1% 135% 53% -74% -63% 61%
75.868
511
-99% -100%
0 0 43.347 0 0 0 255 246 487 (144.244) (180.526) (161.212) (21.881) (32.592) (31.383) 0 (15.025) (4.812) 5.640 (5.640) 0 0 5.466 0 7.346 8.002 8.432 (573.439) 295.936 145.651 0 449.372 (243.660) (172.008) 0 0 495.078 (493) 0 128.699 71.759 83.501 623.777 71.266 83.501 0 (37.246) (21) (140.031) (142.754) (165.558) (50) (99.385) (55.805) (34.385) (34.886) (34.719) 61 (655) 594
- -100% 98% -90% -11% 57% -4% 33% -68% -100% -100% -100% 5% 1% -51% -563%
231.245 0 0 142.622 63.322 81.932 7.498 (26.970) (41.388) 0 102.764 (83.585) (14.950) 61 (726.323) 0
4Q11
ToT 12%
AoA 12%
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
0 0 0 (78.000) 78.000 (78.000) 0 95 4.929 (122.222) (103.133) (102.747) (43.480) (22.724) (23.619) 0 0 0 12.430 8.491 (10.315) 0 5.408 0 2.953 1.496 8.378 (30.249) (1.005) (31.484) 0 0 (31.712) (119.071) (15.255) 0 0 0 0 0 12.818 (12.818) 42.107 57.117 258.750 42.107 69.935 245.932 0 0 0 (37.848) (113.982) (201.198) (18.775) (32.551) (35.311) (17.196) (34.416) (32.735) 0 (8.057) 8.057
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) (282.739) 50.824 31.655 643.451 615.613
(45.706) (9.444) 364.529
28.425 10.491 309.379
48.099 (28.802) 348.294
631.495 29.736
643.451 (78.000)
641.365 60.043
309.379 866.248
348.294 602.121
367.590 409.430
6% -32%
-43% 582%
777.020
-18%
11%
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
0 (2.192) 2.870 (131.416) (26.153) 0 (15.702) 1.529 (1.214) (203.363)
1Q11
(140.161) 158.709 58.819 217.528 0 (277.064) (56.332) (24.293) 0
364.528 285.396 649.924
1.175.627
950.415
Paper Products
-29% 1028% -100% -100% 16% -68% 17% -66% -100% 16% -18% -44% 58% 0% 6% -191% -93% 69% -191% -375% -157% 13% -46%
11
3Q11
Sale Volumes
Domestic Sales(1) 3Q10 2Q11 3
Forestry and Wood Products
(Th. m ssc)
Sawnwood, Remanufactured Wood & Plywood
3Q11
Exports
Total Sales
3Q10 2Q11 3Q11
3Q10 2Q11 3Q11
3Q11 Δ%Q/Q Δ%Y/Y
550
645
668
225
217
216
775
862
884
3%
14%
51
66
66
225
217
216
276
283
281
-1%
2%
Pulp
(Th. Tons)
33
30
28
442
450
500
475
480
528
10%
11%
Packaging, Printing & Writing Paper, Newsprint and Boxboard Boxboard Newsprint
(Th. Tons)
86 16 8
83 16 10
86 16 11
137 84 43
119 79 32
132 82 39
223 100 51
202 95 41
218 98 49
8% 2% 20%
-2% -2% -4%
Tissue Paper
(Th. Tons)
122
125
132
0
0
0
123
125
133
6%
8%
Paper Products Corrugated Boxes
(Th. Tons)
58 39
70 47
60 40
5 2
5 3
3 1
63 40
76 50
64 41
-16% -18%
1% 1%
(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