EMPRESAS CMPC THIRD QUARTER 2013 RESULTS
On October 1st 2013 a new plywood line in the Mininco mill started operations, adding 260,000 m3 per year of capacity. The total investment of the project was US$120 million.
THIRD QUARTER 2013 RESULTS Topics 3Q13 Highlights
3
Sales and EBITDA Analysis
4-5
Sales Analysis:
6 - 11
Forestry
5
Pulp
7-8
Paper
9
Tissue
10
Paper Products
11
Income Statement Analysis
12
Balance Sheet Analysis
13
Debt Analysis
14
Capital Expenditures
15
Relevant Events
16
Capital Markets
17
Financial Information
18 - 20
Conference Call Date: November 7th, 2013 @ 1:00 PM ET US Toll Free: 1-877-317-6789 International Dial: 1-412-317-6789 Webcast: http://services.choruscall.com/lin ks/empresas131107.html
Management Comment The third quarter was one of solid achievement for CMPC, with improving margins and ongoing investment to raise production and enhance efficiency. Our EBTIDA margin expanded to 21%, driven by a strong year-on-year performance in areas including pulp and forest products combined with cost containment. We also saw the Board of Directors approved a new cogeneration facility at the Talagante tissue plant. We are also pleased to announce that we received Forest Stewardship Council (FSCTM) certification for certain CMPC Maderas products, the latest recognition of CMPC’s commitment to sustainability from this globally-respected institution. Looking ahead to the fourth quarter, we expect to continue our solid performance across all our businesses, as well as adding production from the new 260,000 m3 plywood line in the Mininco mill and ramping up production from the new tissue machine at Talagante. We remain focused on our core strengths of delivering high quality products to our customers worldwide, while always striving towards the highest standards of efficiency and sustainability. About CMPC Empresas CMPC produces forestry, pulp, paper, tissue and packaging products throughout Latin America. The company aims to deliver world-class products, from forestry to finished products, to its global customer base. Its high quality timber and production facilities are strategically located in countries including Chile, Argentina, Uruguay, Peru, Mexico, Colombia, Ecuador and Brazil, hiring more than 16 thousand direct employees, making CMPC a truly regional company with a competitive cost structure. The Company sells more than 25 different product lines to over 31,000 clients in more than 45 countries, always seeking long-term relationships. Investor Relations Contact: Colomba Henriquez B. chenriquezb@gerencia.cmpc.cl +562 2441 2791
Press: Sebastián Garcés O. sgarceso@gerencia.cmpc.cl +562 2441 2279
2
3Q13 HIGHLIGHTS Total sales were US$1,231 million, 5% lower and 2% higher than 2Q13 and 3Q12, respectively. Forestry sales of 1 million m3, up 8% QoQ and 11% YoY. Average effective net pulp export prices were CIF 668 US$/ton for softwood and CIF 643 US$/ton for hardwood. Tissue sales of 146 th. tons, consistent growth QoQ and YoY. EBITDA of US$258 million, up 8% when compared to 2Q13 and up 7% compared to 3Q12. EBITDA margin of 21%, compared with 19% in 2Q13 and 20% in 3Q12. Pulp EBITDA rose 7% QoQ and 38% YoY. Net Income of US$43 million, US$13 million higher than 2Q13 and US$ 42 million higher than 3Q12. CMPC paid down over US$270 million in debt during the quarter. Net Debt/EBITDA ratio of 3.0x, slightly higher QoQ and stable YoY. A new 260,000 m3 plywood line started operations at the Mininco facility on October 1st. CMPC’s Board of Directors approved a cogeneration plant for the Talagante Tissue mill, which will generate approximately 20MW of energy and 25 tons of steam per hour.
Main Figures US $ Million
3Q 12
2Q 13
3Q 13
Q oQ
Sales EBITDA EBITDA Margin Net Income
1,209 241 20% 1
1,291 239 19% 31
1,231 258 21% 43
-5% 2% 8% 7% 13% 6% 42% 3372%
131
226
228
1%
Total Assets Net Debt Market Capitalization
13,613 2,603 9,357
14,242 2,628 7,307
14,152 2,793 7,223
Closing Exchange Rate (CLP/US$) Average Exchange Rate (CLP/US$)
473.77 482.49
507.16 484.38
504.20 507.47
CAPEX
Y oY
Y TD 2012
Y TD 2013
Y TD ' 13 / Y TD ' 12
3,546 705 20% 162
3,715 710 19% 158
5% 1% -1% -2%
75%
324
370
14%
-1% 6% -1%
4% 7% -23%
13,613 2,603 9,357
14,152 2,793 7,223
4% 7% -23%
-1% 5%
6% 5%
487.68 488.73
494.46 488.08
1% 0%
Forward-Looking Statements This earnings release may contain forward-looking statements. Such statements are subject to risks and uncertainties that could cause CMPC’s actual results to differ materially from those set forth in the forward-looking statements. These risks include: market, financial and operational risks. All of them are described in CMPC’s Financial Statements, Note 3 (“Gestión de Riesgos”). In compliance with the applicable rules, Empresas CMPC S.A. 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 on its website (www.svs.cl).
3
SALES AND EBITDA ANALYSIS Sales by business area
3Q12
2Q13
3Q13
7% 11%
8% 10%
7% 11%
29%
38%
37%
32%
15%
38%
30% 14%
13%
Forestry
Pulp
Paper
Tissue
Paper Products
Sales by destination
3Q12
3Q13
2Q13 23%
32%
25%
31%
45%
24%
32%
44%
44%
Domestic Sales Foreign Subsidiaries
Domestic Sales Chile
Export Sales
EBITDA by business area
3Q12 2% 26%
16%
2Q13
3Q13
3% 11%
17%
22%
14%
39%
22%
1% 15%
13% 50%
49%
4 Forestry
Pulp
Paper
Tissue
Paper Products
SALES AND EBITDA ANALYSIS Total Revenues were US$1,231 million during the quarter, 5% lower compared to 2Q13 and 2% higher compared to 3Q12. The QoQ decrease is mainly attributed to the Pulp division. Hardwood pulp prices fell QoQ, and government restrictions temporarily reduced pulp volumes sold in Venezuela. In the fourth quarter, CMPC expects to sell these shipments, which were originally destined for Venezuela, in several markets. There were also seasonally lower sales in the paper products division. These effects were partially offset by higher sales volumes in the Forestry division. The YoY increase was driven by an increase in sales in all business areas except the Paper division which was affected by the closure of a newsprint line. Operating costs excluding depreciation, stumpage and decrease due to harvest amounted to US$795 million, 9% lower when compared to 2Q13 and stable when compared to 3Q12. The QoQ decrease was partly explained by lower consolidated sales and higher one-off costs recorded by the Forestry, Pulp and Tissue divisions during 2Q13. At a consolidated level, operating costs in 3Q13 were 65% of total revenues, compared with 67% in 2Q13 and 66% in 3Q12. EBITDA totaled US$258 million, up 8% when compared to 2Q13 and up 7% compared to 3Q12. The QoQ increase was driven by higher EBITDA generation in the Forestry, Pulp and Tissue divisions, while the YoY increase was driven by the Pulp division.
EBITDA Variation by Business
Revenues Analysis to Third Parties ∆ Prices
∆ Volumes
+14
+11 -7
+3
- 23 -19
-3
+5
+8 -1
-5
-2
+10 -13
-4 -14
1,291
258
239 1,231
Sales 2Q13
Forestry +4
Pulp -42
Papers + 1
Tissue -3
Paper Prod. Sales -19 3Q13
EBITDA 2Q13
Forestry
Pulp
Papers
Tissue
Paper Holding & EBITDA Products Others 3Q13
5
FORESTRY Sales*
3Q12
138
134
129
During 3Q13 the Forestry business registered a 3% increase in revenues when compared to 2Q13 and a 7% increment when compared to 3Q12, driven by improved volumes.
2Q13
QoQ sales volumes increased by 8%, driven by the higher sales of plywood (+19%), pulpwood (+13%) and sawing logs (+11%). Higher plywood volumes were due to the recovery of production after maintenance downtime last quarter and stoppages due to start-up of the second line. The pulpwood increase is attributed to higher sales for export whereas sawing logs was benefitted by higher sales in the Argentinean market. On the other hand, there were lower sales volumes of sawn wood (-5%) and remanufactured wood (-2%). Sawn wood volumes decreased due to the redirection of shipments to Japan that should be registered next quarter. 3Q13’s volumes were 11% higher when compared to 3Q12, due to the higher volumes sold of pulpwood (+57%), sawing logs (22%) and remanufactured wood (9%).
3Q13
EBITDA* 42
42 28
3Q12
2Q13
Average sale prices decreased by 5% when compared to 2Q13.
3Q13
* Figures in US$ million
Volumes (Th. m 3 )
3 Q1 2 2 Q1 3
3 Q1 3
Pulpwood
143
198
224
Sawing Logs
316
347
386
Sawn wood
206
210
199
45
50
49
Remanufactured wood Plywood
56
44
52
Others
140
79
92
Total
906
927
1 ,0 0 1
EBITDA for the quarter was 48% higher compared with 2Q13, and 2% lower when compared to 3Q12. QoQ direct costs fell thanks to appreciation of the US Dollar, higher productivity, and lower labor costs which were partly offset by higher oil prices.
6
PULP Global demand for Market Pulp grew 5% during 3Q13 compared with 2Q13, mainly due to a recovery in the Chinese demand. In the first nine months of 2013, global pulp demand grew 3.4%, or 1.3 million tons, led by: – Chinese demand grew 7.5%, or 790,000 tons. This reflects the end of a period deceleration for the world’s second-largest economy. – North American demand grew 6.4%, or 350,000 tons. This is the largely the result of growing tissue paper production, including new tissue machines that use BEKP. In terms of supply, the decision to close Södra’s Tofte Mill, along with other technical restrictions in other mills have limited global supply of softwood pulp. As a result the supply/demand balance has narrowed to levels that allow prices to rise, a trend that has accelerated recently. In contrast, hardwood demand has grown less than supply. As a result, market prices fell during the third quarter, and the price differential between the two pulp grades increased. However, it is expected that a gradual recovery in demand in Europe and the postponement of commissioning of two pulp mills in Latin America, will reduce the imbalance between hardwood supply and demand in the fourth quarter of 2013.
877
900 850
829
800 U S$/ton CIF
CMPC's average net pulp export price evolution
772
750 700
741
745
688
679
688
650
681
662 619
634
649 600
653 648
623
624
3Q12
4Q12
668
680 643
602 550
563
500 1Q11
2Q11
3Q11
4Q11
1Q12 BSKP
2Q12
1Q13
2Q13
3Q13
BEKP
7
PULP During 3Q13 the Pulp business registered a 10% decrease in its sales when compared to 2Q13 and a 7% increase when compared to 3Q12.
Sales* 416 374 351
3Q12
2Q13
3Q13
EBITDA* 130
122 95
3Q12
2Q13
3Q13
* Figures in US$ million
Market pulp sales volumes decreased by 5% when compared to 2Q13 and increased 1% when compared to 3Q12. Sales volumes of softwood were flat QoQ and rose 11% YoY, while hardwood sales fell 7% QoQ and 3% YoY. The QoQ decline in volumes, especially in hardwood, was mainly explained by lower pulp volumes exported to Venezuela due to government restrictions on the use of foreign currency. These volumes should be sold in the fourth quarter in several markets. Effective average sales prices (including a small tonnage of P&W papers and energy sold to the SIC grid) decreased by 15% QoQ. Average effective net export price was CIF 668 US$/ton for softwood and CIF 643 US$/ton for hardwood. During this period, the spread between the two fibers was CIF 25 US$/ton, higher than the CIF 1 US$/ton registered in 2Q13.
EBITDA during the quarter increased by 7% when compared to 2Q13 and 38% when compared to 3Q12. Direct costs fell due to lower wood costs for softwood and lower energy costs. The Energy division contributed US$8 million during 3Q13.
Volumes (t h. To ns) 3 Q1 2 2 Q1 3 3 Q1 3 BSKP
154
171
171
BEKP
366
381
356
Other Total Market Pulp
12
12
12
532
564
538
8
PAPERS Sales* 188
3Q12
170
169
2Q13
3Q13
EBITDA *
During 3Q13 the Paper business registered flat sales when compared to 2Q13 and a 10% decrement when compared to 3Q12. QoQ sales volumes increased by 2%, with higher sales of boxboard and newsprint. Boxboard volumes were up by 6% when compared to the previous quarter. Corrugated paper registered a 3% decrement due to the maintenance downtime in the Puente Alto mill during July. 3Q13’s volumes were 11% lower when compared to 3Q12. Newsprint sales fell 55% YoY, as the Company decided to close a production line at the Nacimento mill due to high energy prices. Corrugated paper volumes also fell 14% YoY.
40 35
3Q12
34
2Q13
QoQ sales prices decreased by 2% when compared to 2Q13, mainly explained by lower boxboard prices.
3Q13
EBITDA for the quarter was 2% lower when compared with 2Q13, and decreased 16% when compared to 3Q12. QoQ direct costs fell, thanks to lower electricity and pulp costs in the boxboard business.
* Figures in US$ million
Volumes ( th. Tons) 3 Q1 2 2 Q1 3 3 Q1 3 Boxboard
99
93
98
Newsprint
34
15
15
Corrugated Paper
36
32
31
Other Papers
35
39
38
205
179
183
Total
9
TISSUE Sales* 470
460
3Q12
2Q13
467
3Q13
EBITDA* 63 53
3Q12
2Q13
58
3Q13
* Figures in US$ million
During 3Q13 the Tissue business registered a 1% decrease in its sales when compared to 2Q13 and a 2% increase when compared to 3Q12. Tissue Paper sales volumes increased by 2% when compared to 2Q13, and 2% when compared to 3Q12. The QoQ increase was mainly explained by higher sales volumes in our foreign subsidiaries. The YoY increase was driven by a 5% growth in the Chilean sales. Sanitary Products sales volumes increased by 1% QoQ and 11% YoY, driven by higher diapers sales in foreign subsidiaries. Average sales prices (measured in US$) decreased by 3% for tissue paper when compared to 2Q13, while sanitary products’ average price increased by 3% in the same period. EBITDA during the quarter increased 9% despite the decrease in sales, while YoY EBITDA fell 8% due to the depreciation of local currencies and costs associated with Talagante’s move along the production curve. Direct costs fell QoQ mainly due to lower energy and recycled paper costs.
Sales Volumes by Country 3% 3% 4% 13% 13%
23%
146 th. Tons 22% 19%
Chile Brazil Argentina Mexico Peru Uruguay Colombia Ecuador
10
PAPER PRODUCTS Sales*
During 3Q13 the Paper Products business registered a 19% decrease in its sales when compared to 2Q13 and remained stable when compared to 3Q12.
101 82
82
3Q12
2Q13
3Q13
EBITDA*
Sales volumes decreased 20% QoQ and increased 5% YoY. The QoQ decline was mainly due to a seasonal decrease in demand for paper products, especially corrugated boxes and molded pulp trays. The YoY increment was driven by a 20% increase in the molded pulp tray business due to new capacity in Chile, as well as by a 20% increase in the paper bags business mainly due to new capacity in Mexico. Average sale prices decreased by 6% when compared to 2Q13, and declined 10% when compared to 3Q12. This can be mainly attributed to lower prices for paper bags.
8 6
EBITDA for the quarter was 65% lower compared with 2Q13, and 54% lower when compared to 3Q12. The weaker margin is partly explained by lower prices for paper bags and higher input costs in the corrugated boxes business.
3
3Q12
2Q13
3Q13
* Figures in US$ million
Volumes (t h. To ns) 3 Q1 2 2 Q1 3 3 Q1 3 Corrugated Boxes
36
49
36
Paper Bags
20
22
22
3
7
4
59
78
62
Molded Pulp Trays Total
11
INCOME STATEMENT ANALYSIS Operating costs excluding depreciation, stumpage and decrease due to harvest amounted to US$795 million, 9% lower when compared to 2Q13 and stable when compared to 3Q12. The QoQ decrease was partly explained by lower consolidated sales and higher one-off costs recorded by the Forestry, Pulp and Tissue divisions during 2Q13. At a consolidated level, operating costs in 3Q13 were 65% of total revenues, compared with 67% in 2Q13 and 66% in 3Q12.
Other operating expenses amounted to US$177 million, 2% lower than in 2Q13 and 3% higher than in 3Q12. The QoQ change is attributed to lower sales during the quarter. YoY the increase is explained by higher distribution costs. At a consolidated level, other operating expenses in 3Q13 were 14% of total revenues, stable from 2Q13 and 3Q12. Financial expenses decreased 2% from 2Q13. In addition, CMPC’s Financial Income decreased 31% when compared with 2Q13. During this quarter there was a lower Share of profit in associated companies, which decreased to US$2 million.
Regarding Currency Exchange rate differences, the depreciation of the US Dollar resulted in a US$10 million loss. Indexation Unit Results registered a US$9 million loss in the quarter, primarily due to the appreciation of the UF, applied to the Company’s UF denominated debt. Other gains (losses) resulted in a loss of US$53 million. This is mostly explained by the US$50 million charge incurred due to the closure of the newsprint operations, Papeles Rio Vergara. This category also includes non-core business revenues and other items, such as insurance deductible in losses, 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. Income taxes for the period implied a US$4 million gain, compared with a loss of approximately US$109 million in 2Q13. During the quarter there was US$ 10 million gain in deferred taxes due to the closure of Papeles Rio Vergara. This change is the result of the depreciation of the Chilean peso and the effect of exchange rates differences on deferred taxes. This is because CMPC’s tax accounting is in Chilean Pesos and the depreciation of this currency increases the tax base of assets measured in dollars, and therefore the Deferred taxes account.
12
BALANCE SHEET ANALYSIS Cash and cash equivalents decreased 18% when compared to 2Q13, and increased 51% when compared to 3Q12, reaching US$834 million. The QoQ change in mainly due to the increase in the capital expenditures increase and the dividend payment during September.
As of September 30th 2013, Current assets decreased 6% when compared with those as of June 30th 2013 as a result of the decrease of Cash held by the Company and a lower level of short term debt. Non-current assets increased 1% when compared with those as of June 30th 2013. Current liabilities were down by 10% when compared with those as of June 30th 2013 due to the payment of short term loans. Non-current liabilities remained stable when compared with those as of June 30th 2013. It is important to highlight that during 3Q13 CMPC paid down over US$270 million of debt. Financial Ratio Evolution
CMPC’s financial debt stood at US$3,786 million as of September 30th 2013, 1% lower when compared with that as of June 30th 2013. Net financial debt amounted to US$2,793 million as of September 30th 2013, 6% higher when compared with that as of June 30th 2013 as a consequence of the lower cash held by the Company. The Net Debt/EBITDA ratio was stable at 3.0x, from 2.9x in 2Q13.
5.26x
5.39x
5.53x
3.0x
2.9x
3.0x
0.45x
0.46x
0.46x
3T12
2T13
3T13
Net Financial Debt / EBITDA Financial Debt / Tangible Net Worth Interest Coverage Ratio
Debt breakdown as of September 30th, 2013
(i) (ii) (iii) (iv)
In Million US$
3 Q1 2
2 Q1 3
3 Q1 3
Current Interest-bearing Liabilities Non Current Interest-bearing Liabilities Other Obligations Mark to Market of Derivatives Debt Instruments for Hedging Currencies and Interest Rates
521 3,143 (49)
444 3,516 (47)
291 3,552 (47)
(99) -
(88) -
(11) -
(v) Net Hedging Current Liabilities related to Debt Instruments (vi) Net Hedging Non Current Liabilities related to Debt Instruments Total Debt ( (i) + (ii) + (iii) + (iv) + (v) + (vi) ) Cash* Net D ebt Average Cost of Debt
3 ,5 1 6 914 2 ,6 0 3 4.3%
3 ,8 2 5 3 ,7 8 6 1,197
993
2 ,6 2 8 2 ,7 9 3 3.9%
4 .1 %
Δ% QoQ Δ% YoY -34% 1% -1% -88%
-44% 13% -5% -89%
-
-
-1 %
8%
-17%
9%
6%
7%
5%
-5%
*Cash and cash equivalents + Term deposits within 90 to 360 days of maturity
13
DEBT ANALYSIS
Amortization Schedule as of September 30th, 2013 EBITDA LTM: US$917 million
984
579
505
500
496
2018
2019
2020/22
348 178 2014
17 2015
2016
2017
Debt by Issuer
2023/30
Debt by Currency 5%
11%1% 25%
70%
88%
Inversiones CMPC
Tissue
Debt by Interest Rate
Other
US$
CLP
Other
Debt by Type
9%
22%
78% 91%
Fixed Rate
Floating Rate
Banks
Bonds
14
CAPITAL EXPENDITURES Guaíba Expansion - October 2013
Capital expenditures in the quarter totaled US$228 million in 3Q13, representing a 1% and 75% increase when compared to 2Q13 and 3Q12, respectively. The YoY increase relates to payments of approximately US$130 million related to the Guaíba II Project.
CAPEX 226
228
2Q13
3Q13
131
A new plywood line started operations in October 1st, which will add 260,000 m3 per year capacity. In September, CMPC’s Board of Directors approved a cogeneration plant for the Talagante Tissue mill, which will generate approximately 20MW of energy and 25 tons of steam per hour.
3Q12
The Guaíba project continues on schedule and on budget. Currently, more than 1,500 people are working in the construction site, from which more than 90% are from the local community.
Main current projects
Forestry
Pulp
Paper
Tissue
Description
Second line - Mininco Plant
Second line - Guaíba Mill
Cogeneration plant – Puente Alto Mill
Cogeneration plantTalagante Mill
Capacity
260 th. m3/year
1.3 million tons/year
44MW + 80 tons steam /hour
20MW + 25 tons steam /hour
Budget
US$120 million
US$2.1 billion
US$70 million
US$32 million
Start up
4Q13
2Q15
2Q15
2Q15
Spending Completion %
100%
10%
0%
0%
15
RELEVANT EVENTS New plywood line in the Mininco Mill: On October 1st, 2013 a new plywood line in the Mininco mill started operations, adding 260,000 m3 per year of capacity. The total investment of the project was US$120 million. Once the line is operating full capacity, CMPC’s plywood capacity will reach 500,000 m3 per year. Closure of Newsprint Operations: On September 5th, CMPC’s Board of Directors decided to close the Papeles Rio Vergara newsprint mill located in Nacimiento, Chile, on November 30th, 2013. This decision was taken due to increased electricity prices, which led to higher production costs. This situation will imply a net charge of US$40 million during this quarter. Cogeneration energy project for the Talagante mill: In September, CMPC’s Board of Directors approved a cogeneration plant for the Talagante Tissue mill. This project consists of a plant that will generate approximately 20MW of energy and 25 tons of steam per hour. Total investment is estimated at US$32 million and the start up date is scheduled for mid 2015.
FSCTM Certification: On August 8th, 2013 CMPC Maderas obtained the FSCTM Chain of Custody Certification for its industrial plants, ports and intermediation. As a result, CMPC can now sell plywood products and sawmill products with the FSCTM seal. Conclusion of the capital increase process: On September 27th Empresas CMPC concluded its capital increase process with the auction of 7,353,164 shares at a price of CLP$1,600, for a total of CLP$11,756 million (approximately US$ 23 million). Previously, Empresas CMPC sold 148,249,784 shares via the offering of preferential rights to existing shareholders. The Matte Group, which holds 55% of CMPC’s shares, subscribed in proportion to their holding, as did the Chilean pension funds, which together hold 11% of CMPC’s shares. Industry recognitions: in September, a study by MideUC, an institute of the Pontificia Universidad Católica de Chile, and the Strategic Communication Agency Azerta, recognized Empresas CMPC as the fifth most environmentally responsible company in Chile. Also, in October, Fundación CMPC received the seal “Más Por Chile” from the Ministry of Social Development. This was in recognition of CMPC’s initiatives in education in local communities in Chile. A provisory CLP$5 cash dividend was paid in September: A dividend of CLP$5 per outstanding share was approved by CMPC’s Board of Directors, paid on September 16th.
16
CAPITAL MARKETS Equity
Average price during the quarter was CLP$1,552 compared to CLP$1,647 in 2Q13. Average daily trade volume was 1.7 million shares, representing a 14% increase QoQ. Average daily financial volume was CLP$2,614 million, 9% more when compared to 2Q13. Conclusion of the capital increase on September 27th with the auction of 7,353,164 shares at a price of CLP$1,600. Price Evolution 1,700 1,650 1,600
CL P$
1,550 1,500 1,450 1,400
Source: Bloomberg
Fixed Income
International Bonds
Yield % ( 1 ) Currency CMPC 2018 US$ CMPC 2019 US$ CMPC 2022 US$ CMPC 2023 US$
3Q12 3.5 3.9 4.1 -
2Q13 3.4 4.0 4.4 4.6
3Q13 3.7 4.5 5.2 5.2
QoQ 8% 12% 17% 13%
YoY 7% 14% 25% -
Source: Bloomberg
Local bonds in Chile
Yield % ( 1 ) BCMPC - A BCMPC - B BCMPC - D BCMPC - F
Currency UF UF UF UF
Source: Bolsa de Comercio de Santiago (1) Average Mid Yield
3Q12 3.5 4.2 3.7 3.8
2Q13 3.6 4.1 3.7 3.8
3Q13 3.2 4.4 3.2 3.8
QoQ 13% -6% 16% 1%
YoY -11% 6% -13% -1% 17
BALANCE SHEET 2012 Figures in Th. US$*
C urrent Assets Cash and Cash Equivalents Operative Receivables Inventories Biological Assets Tax Assets Other Current Assets
1 Q1 2
2 Q1 2
2013 3 Q1 2
4 Q1 2
1 Q1 3
2 Q1 3
3 Q1 3 3 Q1 3
QoQ
YoY
3 ,3 1 2 ,4 5 1 366,687 969,757 1,042,859 223,459 148,402 561,287
3 ,5 0 9 ,0 8 5 542,303 913,132 1,060,528 218,363 127,275 647,484
3 ,4 5 0 ,4 8 0 550,670 919,126 1,087,790 217,544 147,301 528,049
3 ,3 5 3 ,6 9 3 431,242 955,232 1,098,369 244,886 154,964 469,000
3 ,3 6 6 ,4 6 5 433,767 946,419 1,111,044 236,858 167,205 471,172
3 ,6 8 0 ,5 1 5 1,012,019 932,873 1,053,658 236,404 128,248 317,313
3 ,4 5 4 ,3 5 8 833,967 946,129 1,086,941 235,881 106,611 244,829
Non C urrent Assets Intangible Assets, Different from Goodwill Goodwill Property, Plant and Equipment, Net Biological Assets Deferred Tax Assets Other Non Current Assets
1 0 ,2 2 3 ,7 6 0 10,071 156,878 6,464,886 3,267,626 133,783 190,516
1 0 ,1 1 2 ,0 7 5 9,586 149,942 6,433,556 3,288,415 45,535 185,041
1 0 ,1 6 2 ,9 8 0 9,491 149,244 6,478,299 3,298,355 54,867 172,724
1 0 ,5 2 5 ,6 8 9 10,546 142,691 6,569,815 3,280,990 54,052 467,595
1 0 ,7 0 6 ,6 5 6 14,952 143,114 6,554,675 3,310,103 207,352 476,460
1 0 ,5 6 1 ,0 1 0 14,624 137,112 6,579,774 3,316,569 51,545 461,386
1 0 ,6 9 7 ,2 0 0 14,383 136,000 6,650,920 3,311,019 56,404 528,474
9%
3%
15%
206%
TOTAL ASSETS
1 3 ,5 3 6 ,2 1 1
1 3 ,6 2 1 ,1 6 0
1 3 ,6 1 3 ,4 6 0
1 3 ,8 7 9 ,3 8 2
1 4 ,0 7 3 ,1 2 1
1 4 ,2 4 1 ,5 2 5
1 4 ,1 5 1 ,5 5 8
- 1%
4%
C urrent Liabilities Other Financial Liabilities Operative Liabilities Other Current Liabilities
1 ,0 9 6 ,9 9 4 241,289 653,984 201,721
1 ,1 6 0 ,0 6 5 416,413 588,767 154,885
1 ,3 8 1 ,1 2 1 563,243 643,767 174,111
1 ,5 6 9 ,2 3 5 705,490 707,031 156,714
1 ,6 8 9 ,5 5 0 890,148 647,773 151,629
1 ,2 0 5 ,0 6 9 551,558 573,513 79,998
1 ,0 8 4 ,7 9 8 381,382 600,341 103,075
- 10%
- 21%
-31%
-32%
Non C urrent Liabilities Other Financial Liabilities Deferred Tax Liabilities Other Non Current Liabilities
4 ,4 1 8 ,5 3 3 3,218,130 931,633 268,770
4 ,5 0 0 ,1 8 0 3,387,947 861,337 250,896
4 ,2 5 1 ,0 5 4 3,143,351 946,112 161,591
4 ,3 2 5 ,1 1 3 3,230,886 955,449 138,778
4 ,3 3 2 ,4 8 9 3,097,142 1,095,247 140,100
4 ,6 9 7 ,7 5 3 3,548,429 1,022,257 127,067
4 ,6 7 6 ,3 4 1 3,568,630 997,097 110,614
9 ,5 0 8
4 ,7 1 3
4 ,7 2 3
4 ,7 2 2
4 ,8 0 1
4 ,3 5 7
8 ,0 1 1 ,1 7 6
7 ,9 5 6 ,2 0 2
7 ,9 7 6 ,5 6 2
7 ,9 8 0 ,3 1 2
8 ,0 4 6 ,2 8 1
1 3 ,5 3 6 ,2 1 1
1 3 ,6 2 1 ,1 6 0
1 3 ,6 1 3 ,4 6 0
1 3 ,8 7 9 ,3 8 2
1 4 ,0 7 3 ,1 2 1
Non C ontrolling Participations Equity Attributable to the Owners of the C ontroller TOTAL LIABILITIES & SHAREHOLD ERS' EQUITY
- 6%
0%
-18%
51%
1%
3%
3%
0%
0%
8%
-17%
-28%
-23%
-54%
1%
5%
-2%
52%
-1%
-9%
1%
3%
0%
0%
5%
-7%
29%
-41%
0%
10%
1%
14%
-2%
5%
-13%
-32%
4 ,3 8 3
1%
- 7%
8 ,3 3 4 ,6 8 3
8 ,3 8 6 ,0 3 6
1%
5%
1 4 ,2 4 1 ,8 6 2
1 4 ,1 5 1 ,5 5 8
- 1%
4%
* Balance Sheet numbers are based on CMPC's quarterly financial data, which is presented to the "Superintendencia de Valores y Seguros" (SVS) .
18
INCOME STATEMENT 2012 1 Q1 2
Figures in Th. US$
2 Q1 2
2013 3 Q1 2
4 Q1 2
1 Q1 3
2 Q1 3
3 Q1 3 3 Q1 3
QoQ
YoY
Sales
1,176,975
1,160,717
1,208,625
1,213,003
1,193,670
1,290,776 1,230,528
-5%
2%
Operating Costs(1)
(799,287)
(752,084)
(795,226)
(816,831)
(819,774)
(870,932) (794,907)
-9%
0%
3 7 7 ,6 8 8
4 0 8 ,6 3 3
4 1 3 ,3 9 9
3 9 6 ,1 7 2
3 7 3 ,8 9 6
4 1 9 ,8 4 4 4 3 5 ,6 2 1
4%
5%
Other Operating Expenses
(153,331)
(168,958)
(172,829)
(186,902)
(161,715)
(180,781) (177,196)
-2%
3%
EBITD A ( 3) EBITDA Margin (%)
2 2 4 ,3 5 7 19%
2 3 9 ,6 7 5 21%
2 4 0 ,5 7 0 20%
2 0 9 ,2 7 0 17%
2 1 2 ,1 8 1 18%
2 3 9 ,0 6 3 2 5 8 ,4 2 5 19% 21%
8% 1%
7% -2%
Depreciation, Amortizations and Stumpage (106,085) Increase in Biological Assets due to Forests Growth and Price Effects 58,222 Decrease in Biological Assets due to Harvest (44,104)
(102,156) 58,221 (52,743)
(100,691) 61,915 (53,596)
(115,842) 60,026 (51,155)
(105,380) 51,903 (46,134)
(106,200) (105,773) 51,904 51,114 (51,812) (56,155)
0% -2% 8%
5% -17% 5%
Operating Income
1 3 2 ,3 9 0
1 4 2 ,9 9 7
1 4 8 ,1 9 8
1 1 2 ,5 7 0
1 3 2 ,9 5 5 1 4 7 ,6 1 1
11%
0%
(41,310) 8,926 3,435 (14,971) (8,214) (5,182) 49,280
(45,809) 8,892 2,160 (1,345) (2,937) (12,594) (54,832)
(45,439) 10,742 3,093 (31,654) (765) 12,212 (95,140)
1 0 2 ,2 9 9 (42,673) 8,715 4,122 10,484 (6,213) (9,537) (27,132)
(41,638) 6,202 2,631 (13,419) (1,016) 14,653 4,332
(43,918) 5,868 1,032 39,574 701 2,904 (108,550)
(43,217) 4,069 3,131 (10,339) (8,708) (53,202) 3,947
-2% -31% 203% -126% -1342% -1932% -104%
-5% -62% 1% -67% 1038% -536% -104%
1 2 4 ,3 5 4
3 6 ,5 3 2
1 ,2 4 7
4 0 ,0 6 5
8 4 ,3 1 5
3 0 ,5 6 6
4 3 ,2 9 2
42%
3372%
Operating Marg in (2)
Financial Expenses Financial Income Share Results in Associated Companies Foreign Exchange Difference Indexation Unit Results Other Gains (Losses) Income Taxes Net Income
(1) Operating Costs 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
19
CASH FLOW STATEMENT F ig ures in Th. U S C ash F low from Operating Activities C ash collection from operating activities Collections from sales of goods and services delivered Other cash collections from operating activities Payments for operating activities Payments to suppliers for goods and services Payments to and on behalf of employees Payments for premiums, benefits, annuities, and other obligations derived from suscribed policies Other payments from operating activities Net cash flows from (used in) operating activities Income taxes paid (reimbursed) Other cash inflows (outflows) C ash F low from Investment Activities
1 Q1 2
2012 2 Q1 2
3 Q1 2
1 Q1 3
2013 2 Q1 3
2 5 6 ,6 6 5
1 6 2 ,9 6 5
2 1 8 ,2 9 9
2 2 6 ,8 3 2
4% 0
-1 2 % 0
1,280,431 84,793
1,375,528 66,581
1,304,311 81,937
1,363,551 69,422
1,420,809 59,293
1,396,521 57,723
-2% -3%
7% -30%
(1,042,197) (80,894) (97) (40,559) 2 0 1 ,4 7 7 (22,460) 0
(1,027,199) (169,038) 0 (54,019) 1 9 1 ,8 5 3 (32,673) 0
(913,822) (137,109) 0 (46,360) 2 8 8 ,9 5 7 (32,292) 0
(1,082,802) (115,162) (1,062) (49,901) 1 8 4 ,0 4 6 (21,081) 0
(1,044,892) (1,051,700) (158,368) (139,983) (64) (415) (43,420) (41,795) 2 3 3 ,3 5 8 2 2 0 ,3 5 1 (15,059) 6,481 0 0
1% -12% 548% -4% -6 % -143% -
15% 2% -10% -2 4 % -120% -
3 0 ,2 3 4
(1 3 6 ,0 7 6 )
(8 6 ,6 8 2 ) (2 0 1 ,9 5 1 )
133%
-7 6 8 %
0 892 (210,270) 0 (16,328) (21,690) 28,366 3,585 5,053 123,710
(278) 792 (205,827) 0 (23,157) (20,299) 16,721 1 3,918 26,178
-11% -2% 42% -6% -41% -100% -22% -79%
230% 93% -5% -9% -62% -85%
(1 9 9 ,0 4 1 )
-1 4 3 %
-3 3 %
134,787 0 1 3 4 ,7 8 7 0 (272,619) (22,869) (38,340) 0
-43% -100% -7 6 % -100% -43% -17% -11% -100%
-554% -100% 325% 11% -39% -13% -
(1 7 4 ,1 6 0 )
-1 2 9 %
2062%
(2 2 7 ,2 5 8 )
0 9,561 (158,039) 0 (15,646) (6,700) 0 0 8,698 3,587
(792) 101 (136,396) 5,480 (22,727) 2,830 0 3,379 8,804 (87,937)
0 240 (106,551) 0 (24,249) (22,320) 0 0 10,414 172,700
0 0 (130,544) 1,241 (13,948) (5,923) 1,930 0 6,217 4,951
C ash F low from F inancing Activities
(9 5 ,5 9 8 )
2 7 0 ,9 4 0
(2 9 4 ,9 5 6 )
(2 8 ,3 8 1 )
4 6 1 ,7 5 1
Proceeds raised through short-term loans Proceeds raised through long-term loans Proceeds raised throug h loans Proceeds from equity issuances Loans reimbursements Dividends paid Interest paid Other cash inflows (outflows)
0 105,411 1 0 5 ,4 1 1 0 (156,526) (149) (44,334) 0
521,457 47,704 5 6 9 ,1 6 1 0 (210,295) (53,902) (34,024) 0
(29,710) 61,438 3 1 ,7 2 8 0 (245,183) (37,504) (43,997) 0
0 156,957 1 5 6 ,9 5 7 0 (146,143) (79) (39,116) 0
235,109 338,027 5 7 3 ,1 3 6 437,414 (478,233) (27,665) (42,858) (43)
Net increase (decrease) in cash and cash equivalents before effect of exchang es rate chang e
(7 5 ,1 2 0 )
2 0 2 ,8 6 2
(8 ,0 5 7 )
(1 ,4 9 2 )
Cash and cash equivalents at beginning of period C ash and cash equivalents at end of period Term deposits within 90 to 360 days of maturity Total C ash at the end of the period
YoY
1 5 9 ,1 8 0
(1 5 8 ,5 3 9 )
Net increase (decrease) in cash and cash equivalents
QoQ
1 7 9 ,0 1 7
Cash flows used for acquiring subsidiaries Amounts obtained from the sale of property, plant and equipment Purchases of property, plant and equipment Cash obtained from the sale of intangible assets Purchases of other long-term assets Payments of future contracts, forwards, options and swaps Collections of future contracts, forwards, options and swaps Dividends received Interest received Other cash inflows (outflows)
Effects of variation in the exchange rate on cash and cash equivalents
3 Q1 3 3 Q1 3
37,450 (3 7 ,6 7 0 )
(27,246) 1 7 5 ,6 1 6
16,424
4,017
8 ,3 6 7
2 ,5 2 5
5 9 3 ,3 6 8 (15,116) 5 7 8 ,2 5 2
(3,892)
-74%
-124%
(1 7 8 ,0 5 2 )
-1 3 1 %
-2 2 2 8 %
404,357
366,687
542,303
431,242
433,767
431,242
-1%
-54%
3 6 6 ,6 8 7
5 4 2 ,3 0 3
5 5 0 ,6 7 0
4 3 3 ,7 6 7
1 ,0 1 2 ,0 1 9
2 5 3 ,1 9 0
-7 5 %
-5 4 %
416,152
515,307
362,831
310,475
185,161
158,789
-14%
-56%
7 8 2 ,8 3 9
1 ,0 5 7 ,6 1 0
9 1 3 ,5 0 1
7 4 4 ,2 4 2
1 ,1 9 7 ,1 8 0
4 1 1 ,9 7 9
-6 6 %
-5 5 %
20