Trinidad Valdés M. mtvaldes@gerencia.cmpc.cl (56-2) 441 2713
EMPRESAS CMPC S.A.
4th Quarter 2008 Results (4Q08) January 22nd, 2009
During the fourth quarter of 2008, there was a decline in the total sales of the company, which was mainly due to a decrease in pulp prices. On the other hand, there was a decline in the unitary direct cost, because of price decreases in raw materials and energy. The Chilean peso showed a 15% depreciation against the US dollar.
CMPC’s consolidated sales for 4Q08 reached US$813 million, registering a 2% decrease when compared to 3Q08. During this quarter, there were higher sale prices in all the business divisions, except Pulp; which experienced a 28% decrease in its average sale price. Sale volumes increased only in the Pulp and Paper Products divisions.
EBITDA during 4Q08 reached US$160 million, showing a 1% increase when compared to that of 3Q08. This higher EBITDA is mainly explained by a decrease in direct costs and SG&A expenses.
CMPC registered a Net Loss of US$13 million during 4Q08; this decrease is mainly due to lower price level restatement, in response to the strong dollar appreciation against local currencies.
FINANCIAL REPORT
CMPC’s net debt as of the end of 4Q08 stood at US$1,349 million, increasing US$34 million during the last quarter. The interest coverage ratio reached 10.24 times.
During this quarter, a new tissue paper machine started operations in Uruguay.
Due to the global economic crisis, during 4Q08 a collective holidays period began, which affected workers from Line 1 at the Laja mill and from three of the four sawmills that CMPC owns. In addition, the Nacimiento sawmill suffered a 50% reduction in its operations for an undetermined period of time. Financial Highlights (1) In million USD % Change
Sales EBITDA Depreciation & Stumpage Net Income Net Debt Net Debt / Capitalization (2) Market Capitalization Closing exchange rate
www.cmpc.cl Conference Call: January 28th 9:00 AM ET US Toll Free: (1 888) 481 7939 International dial: (1 617) 847 8707 Password: 255 807 41
(1)
4Q07 791 211 (84) 114 1.362 19,4% 7.567 496,89
3Q08 827 159 (85) 41 1.315 18,9% 5.948 551,31
4Q08 813 160 (76) (13) 1.349 20,0% 3.158 636,45
Qo Q
YoY
-2%
3%
1%
-24%
-11%
-10%
-132%
-111%
3%
-1%
1%
1%
-47%
-58%
15%
28%
Figures in USD million. Income Statement and Cash Flow Statement figures have been translated according to quarterly average exchange rate. Balance Sheet’s figures have been translated according to the closing exchange rate as of the (2) end of each quarter. This criteria has been adopted starting 1Q05, since in CMPC’s opinion, this criteria reflects the Company’s results in a better way. (2) As of the end of each quarter.
INCOME STATEMENT ANALYSIS
CMPC registered a Net Loss of US$13 million during 4Q08. This decrease was primarily due to lower price level restatement, in response to the strong dollar appreciation during this quarter. In addition, there was an increase on non operating expenses because of higher tax provisions. This decline was partially offset by an increase in the EBITDA, and by lower depreciation and net financial expenses, compared to the previous quarter. (Figure 1).
Figure 1: Net Income Analysis In USD million 80
60
1
41 40
8
20
0
58
-20 ∆ EBITDA
Net Income 3Q 08
Total revenues reached US$813 million, registering a 2% decrease when compared to the previous quarter, and 3% higher than the same period of the last year.
Empresas CMPC – 4Q08 Report
∆ Dep reciatio n
∆ Financial Exp .
∆ Other No n Op erating
-13
∆ Price Level Net In co me 4Q08 Res tatement
Figure 2: Sales Breakdown Analysis to Third Parties (Price & Quantity Effect) In USD million -7
950
During 4Q08 there were higher prices in all the business divisions, except Pulp, which experienced a 28% decrease in its average sale price during this quarter. Nevertheless, this business presented an important recovery in its sale volumes when compared to 3Q08. At the same time, the Paper Products division registered higher sale volumes, which was mainly explained by the seasonality of the fruit export business in Chile. On the other hand, the Paper division experienced a decline in its sale volumes, which was mainly due to a decrease in the packaging sales, in response to the economy’s slowdown. Finally, the Tissue business also showed a decrease in its sale volumes, both in diapers and feminine care products, as well as in tissue paper products. (Figure 2).
1
9
0
+1
+10
72
900
850
-18
827 4
0
11
800
10
72 18
7
3
813
9 Q = Volume
750 P = Price
700 Total Sales 3Q08
Forest
Pulp
Papers
Tissue
Paper Product s
Total Sales 4Q08
2
INCOME STATEMENT ANALYSIS
The Forestry and solid wood business registered a 6% decrease in sales (-US$7 million) during this period. The total sale volumes decreased 10%, due to a decline in sawing logs (-24%), sawn wood (-14%), remanufactured wood (-10%) and plywood volumes (-6%). This was partially offset by an increase in pulpwood volumes (+32%). The subprime crisis originated in the United States, which has already spread to an important part of Europe and Asia, in addition to the sharp slowdown in the global economy, generated a decline in the forestry sale volumes. The average sale price registered a 4% increase compared to the previous quarter. Pulp sales during this quarter did not change when compared to those of 3Q08. Part of the decline in export volumes observed in 3Q08 was recovered during this period, at the expense of lower prices. Hardwood volumes increased 26%, while softwood volumes increased 55%. The average pulp price showed a 28% decrease when compared to 3Q08, reaching CIF 528 US$/ton and CIF 464 US$/ton for softwood and hardwood respectively. During this period, the spread between both fibers increased to CIF 64US$/ton. Paper business during 4Q08 registered a 10% decrease (-US$18 million) in its consolidated sales compared to 3Q08, mainly explained by a reduction in its sale volumes. A breakdown of the different paper grades in this business shows that Newsprint volumes registered a 3% decrease during this quarter. On the other hand, prices increased 4%, following the trend in the foreign markets. In December, the newspaper’s nominal price reached its maximum level in 7 years. Boxboard average sale price registered a 6% reduction, while sale volumes decreased 12%. Finally, Packaging paper sale volumes decreased 25% compared to 3Q08, which was mainly due to a decrease in demand, in response to the lower industrial activity registered during the quarter. The average sale price of corrugating paper did not change when compared to the previous quarter. Tissue business, including operations in Chile, Argentina, Peru, Uruguay, Ecuador, Brazil, Mexico and Colombia showed a 0.6% increase in sales (+US$1 million) during 4Q08, mainly explained by a 9% increase in the price of tissue paper when measured in US Dollars. On the other hand, diapers and feminine care products prices showed a 12% decrease when compared to the previous quarter. The additional volumes due to the start up of new projects in the foreign subsidiaries, was not enough to offset the decrease in sale volumes. Tissue paper volumes decreased 2%, while those of diapers and feminine care products decreased 4%. Paper products business during 4Q08 registered a 4% increase (+US$10 million) in sales compared to 3Q08. This decrease is mainly attributable to a 9% increase in sales volumes, especially in multiwall bags (+2%) and corrugated boxes (+32%) which is mainly explained by the seasonality of the fruit export season in Chile. On the other hand, molded pulp trays volumes decreased during this quarter (-46%). The average sale price increased 4% when compared to the previous quarter.
Empresas CMPC – 4Q08 Report
3
INCOME STATEMENT ANALYSIS
A breakdown of CMPC’s sales to third parties by destination during 4Q08 shows that 48% of the sales corresponded to exports, 27% to the domestic market in Chile and 25% to domestic markets from foreign subsidiaries. (Figure 3)
Figure 3: Sales to Third Parties Breakdown by Destination Based in USD sales
Domestic Sales from Foreign Subsidiaries 25%
Export Sales 48%
Domestic Sales in Chile 27%
CMPC’s sales breakdown to third parties by business for 4Q08 shows that the Tissue business contributed with 30% of total revenues, followed by Pulp and Paper contributing with 27% and 20% of total sales respectively. Finally, Forestry and Paper Products’ businesses represented 13% and 10% of total revenues respectively. (Figure 4) During this quarter, Tissue sales were once again higher than those of Pulp. This was mainly due to a decrease in the pulp prices, as well as to an increase in the production of tissue paper, as a result of the investment plan undertaken by this business at a regional level.
Figure 4: Sales to Third Parties Breakdown by Business In USD million 100%
10%
9%
10%
80%
20%
22%
20%
60%
23%
Paper products Papers Tissue
30%
30%
Pulp Forestry
40% 35%
26%
27%
12%
13%
13%
4Q07
3Q 08
4Q08
20%
0%
Empresas CMPC – 4Q08 Report
4
INCOME STATEMENT ANALYSIS
Costs of goods sold excluding depreciation amounted to US$498 million, 2% lower than those of 3Q08. The reduction in costs is mainly explained by the decrease in raw materials, energy and transportation costs. During this quarter, a significant number of raw materials experienced a decline in their price; this is the case of wood, pulp and recycled paper. It is important to highlight that the average oil price decreased 50% during the fourth quarter, generating other costs reductions such as energy and freight costs. Costs of goods sold in 4Q08 were 61% of total sales, the same percentage than in 3Q08. This is mainly due to a decline in total sales. At the same time, some fixed costs associated to unsold production were recognized during the quarter; this is the case of some freight and inventories maintenance costs.
Sales, General and Administrative expenses decreased 3% when compared with expenses during 3Q08, closing at US$155 million. SG&A expenses represented 19% of total sales, the same percentage than those of 3Q08. CMPC’s consolidated EBITDA reached US$160 million, 1% higher than 3Q08’s EBITDA.
Figure 5: EBITDA Variation by Business In USD million 260 240
The increase is mainly explained by the higher EBITDA in the Paper and Paper Products businesses. The EBITDA of the Forestry division remained unwavering during the last quarter. The only businesses that showed a lower EBITDA compared to the previous quarter, were Pulp and Tissue. (Figure 5)
Empresas CMPC – 4Q08 Report
220 200 180
13
159
3
160 0
160
11
4
140 120 100 80 EBITDA 3Q08
Forest
Pulp
Papers
Tissue
Paper Products
EBITDA 4Q08
5
INCOME STATEMENT ANALYSIS
While sales of the Forestry division decreased, its EBITDA remained stable because of lower production costs, especially those related to harvesting and transportation. On the other hand, the decline in the EBITDA of the Pulp division is due to the higher production fixed costs, such as freight and maintenance inventories costs of those units that have been produced but not necessarily sold. In the case of Tissue, the decrease is due to exchange rate effects, specifically the depreciation of local currencies against the US dollar. Meanwhile, the larger EBITDA of the Paper business is primarily due to the sharp decline in its cost structure, in response to drops in the prices of raw materials and energy. Finally, the increase in the Paper Products’ EBITDA is due to an increase in sales, resulting from the seasonality of the fruit business in Chile. (Figures 5 and 6).
Figure 6: EBITDA Breakdown by Business In USD million 240 220
33
180 160 140 120 100
4 31
27
26
7
Tissue
44
Pulp
15
Forestry
120
80 60
Paper products Papers
9
200
75
71
40 20
22
23
23
4Q07
3Q08
4Q08
0
Net Financial expenses during 4Q08 decreased 6% compared to 3Q08, amounting US$13 million. This decrease is mainly explained by the lower spending on interests payments, as a result of the lower total debt. The average cost of debt for 4Q08 was 4.7%, increasing 0.1% when compared to the previous quarter. Interest coverage ratios such as EBITDA/Financial Expenses and Average Debt/EBITDA, reached levels of 10.24 and 2.08 times respectively, considering the last twelve months. Price Level Restatement and FX Differences resulted in a net loss of US$58.4 million during the 4Q08. Income Tax in 4Q08 was US$18.2 million. The effective tax rate for the year comes to 20%.
Empresas CMPC – 4Q08 Report
6
INCOME STATEMENT ANALYSIS
Current assets decreased 5% in dollars when compared to the previous quarter. This was mainly explained by the effect of the Chilean peso depreciation against the US dollar, and by a lower cash and marketable securities, in response to the lower operational cash flow and the payments of part of the short term debt. As of the end of 4Q08, 49% of cash and marketable securities were denominated in Chilean pesos, 48% in US dollars, and the balance mainly in Euros and other currencies.
Fixed assets decreased 2% in dollars from the end of 3Q08, mainly due to the effect of the depreciation of the Chilean peso. Current liabilities as of the end of 4Q08 remained constant when compared with those of 3Q08, despite the strong dollar appreciation. Long term liabilities decreased 4% during 4Q08. This was mainly explained by the depreciation of the Chilean peso. Total CMPC debt reached US$1,579 million as of the end of 4Q08, 3% lower than that of the previous quarter. As of the end of 4Q08, 69% of CMPC´s debt was denominated in USD, 23% was denominated in Chilean pesos (or Unidades de Fomento) and the balance in other currencies. Debt breakdown In millionUSD
% Change
4Q07
3Q08
4Q08
QoQ
YoY
Short term debt
168,6
150,8
143,6
-5%
-15%
Short term portion of long term debt
167,5
263,0
265,3
1%
58%
Long term debt
1.193,1
1.215,7
1.175,4
-3%
-1%
Total debt
1.529,2
1.629,5
1.584,3
-3%
4%
167,1
314,6
229,3
-27%
37%
1.362,1
1.314,9
1.355,0
3%
-1%
4,9%
4,6%
4,7%
0,1%
-0,2%
Cash & cash equivalents Net debt Average cost of debt
Total Shareholder’s Equity as of the end of 4Q08 was US$5,107.4 million, 4% lower than that of 3Q08. This rise is mainly attributable to the depreciation of the Chilean peso during the quarter.
Empresas CMPC – 4Q08 Report
7
RELEVANT EVENTS INCOME STATEMENT ANALYSIS
During the quarter there were a significant number of relevant events. The most important ones were: In December 2008, a new tissue paper machine started operations in Uruguay: In December 2008, at the IPUSA tissue mill in Uruguay, a new tissue paper machine Former Crescent type started operating. This machine has a capacity of 21 thousand tons per year. The CEO of the company in Uruguay, Ricardo Pereira, said that this investment is part of a US$ 20 million plan approved in the 2007-2008 period. The installed capacity in the Atlantic zone, including investments in Argentina and Uruguay, will reach 140 thousand tons of tissue paper per year. CMPC started a period of collective holidays in the sawmills of Mulchén, Bucalemu and Nacimientdo: Given the global economic crisis and the slowdown in demand for wood, CMPC Forestry has decided to reduce its activities in order to decrease production, diminish costs and reduce inventory levels. That is why, CMPC initiated a period of collective holidays at the Mulchén, Bucalemu and Nacimiento sawmills. It affected 1,238 workers (including internal and external staff), reducing from three to two work shifts, during three weeks. Additionally, once the collective holidays period at the Nacimiento sawmill are finished, there is going to be an indefinite stoppage of 50% of the activities of this plant, which implies firing a total of 77 internal employees, in addition to 220 external staff. This measure was taken in response to the strong impact that the crisis has had both, in the U.S. wood market, as well as in other markets where CMPC places its products. CMPC started a period of collective holidays at Line 1 of the Laja mill: In response to the decline in world’s price of pulp, and due to the global economic crisis, CMPC decided to start a period of collective holidays for five weeks, which affected 150 employees involved in the production of unbleached pulp, at Line 1 of the Laja mill. This action will result in a decrease of approximately 300 tons per day of unbleached pulp. CMPC approves the construction of a new tissue paper plant in Colombia: In October 2008, CMPC’s board approved the construction of a new tissue paper mill in Colombia. This new plant implies a total investment of US$60 millions for 27,000 tons of capacity per year. This new mill should start operations in March 2010, being the first approach of CMPC in the Colombian paper industry, and will complement the diapers business that the company has in that country since 2007. CMPC will start to report its financial statements under IFRS next 1Q09: On March 2009, CMPC will begin to publish its financial statements under IFRS international accounting standard. Because of this, CMPC selected the US dollar as its functional currency, so these are the last financial statements the company is going to report in Chilean pesos. Additionally, there will be some changes in some accounts of the Balance Sheet and Income Statement. In CMPC’s Website (www.cmpc.cl), under the investors section, there is a document which explains the main changes of this new accounting standard and its impacts on CMPC’s financial statements. This document provides information about Empresas CMPC SA. In any case this constitutes a comprehensive analysis of the financial, production and sales situation of the company, so to evaluate whether to purchase or sell securities of the company, the investor must conduct its own independent analysis. In compliance with the applicable rules, Empresas CMPC SA. publishes this document on its Web site (www.cmpc.cl) and sends to the Superintendencia de Valores y Seguros, the financial statements of the company and its corresponding notes, which are available for consultation and review.
Empresas CMPC – 4Q08 Report
8
Exhibit 1a: Consolidated Income Statement (1) Consolidated Income Statement
(1)
2007 Million of US$ Dollars as of the End of Each Quarter Exchange rate
Sales COGS without depreciation and stumpage % costs/sales
SG&A
(1)
% expenses/sales
EBITDA % EBITDA/sales
Depreciation & Stumpage Operating Income Financial Income Financial Expenses (EBITDA + F. Income)/F. Expenses (times)
Other Non-Operational Income / (Expenses) Price Level Restatement Income Taxes Minority Interest Net Income % Income/sales
2008
1Q
2Q
3Q
4Q
1Q
2Q
541,26
525,97
518,55
498,47
452,33
489,03
3Q 08
3Q
4Q
% YoY
523,59
657,0
25%
32%
666,2
731,2
787,4
791,0
864,8
924,5
826,6
813,0
-2%
3%
(350,5)
(382,1)
(407,2)
(423,9)
(482,9)
(514,4)
(508,1)
(497,8)
53%
52%
52%
54%
56%
56%
61%
61%
-2% 0%
17% 8%
(125,0)
(136,4)
(141,7)
(156,5)
(159,9)
(166,0)
(159,9)
(155,3)
19%
19%
18%
20%
18%
18%
19%
19%
-3% 0%
-1% -1%
190,6
212,7
238,6
210,6
222,0
244,1
158,6
160,0
29%
29%
30%
27%
26%
26%
19%
20%
1% 0%
-24% -7%
(68,6)
(76,2)
(79,8)
(84,5)
(91,1)
(88,6)
(84,9)
(75,9)
-11%
-10%
73,7
84,1
14%
-33%
-24%
114%
-12% 1,1 x
8% -3,6 x
122,0
136,5
158,9
126,1
130,9
155,5
1,7 (18,5)
1,6 (19,7)
2,1 (19,3)
2,3 (16,7)
2,6 (18,3)
4,6 (19,9)
6,5 (20,4)
4,9 (18,0)
10,4 x
10,9 x
12,5 x
12,8 x
12,3 x
12,5 x
8,1 x
9,2 x
1,7 (9,1) (19,3) (1,5) 77,0
1,0 31,9 (25,1) (0,7) 125,5
(0,1) 37,4 (30,4) (1,0) 147,6
(5,0) 30,6 (22,6) (0,7) 114,0
(3,7) 26,3 (15,4) 0,3 122,9
3,3 10,8 (42,6) (2,7) 109,0
(3,9) (1,1) (12,6) (1,4) 40,8
(3,4) (58,4) (18,2) (3,9) (13,0)
12%
17%
19%
14%
14%
12%
5%
-2%
Notes (1)
%Q oQ
Figures are based on the quarterly consolidated financial statements of Empresas CMPC S.A. filed in the "Superintendencia de Valores y Seguros" (SVS), and are denominated in millions of US Dollars as follows: Value TUS$ =[ FECU Value T - FECU Value T-1 * (1+ CPI) quarter ] / Average Exchange Rate
-14%
-33%
5245%
-291%
45%
-19%
181%
461%
-132% -7%
-111% -16%
Exhibit 1b: Consolidated Income Statement
Consolidated Income Statement 2007 Million of Ch Pesos as of the End of Each Quarter
Sales COGS without depreciation and stumpage % costs/sales
SG&A % expenses/sales
EBITDA
2008 1Q
2Q
4Q 08
1Q
2Q
3Q
4Q
3Q
4Q
360.590
384.581
408.330
394.278
391.178
452.107
432.774
534.110
-4%
6%
(189.718) (200.949) (211.137) (211.283)
6% 6%
26% 10%
3% 1%
14% 1%
(218.417)
(251.552)
(266.019)
(327.016)
54%
56%
56%
61%
61%
(67.682) (71.760) (73.455) (78.016)
53%
52%
52%
(72.332)
(81.187)
(83.711)
(102.000)
20%
18%
18%
19%
19%
103.189 111.872 123.738 104.979
19%
19%
18%
%Q oQ
% YoY
100.429
119.368
83.044
105.094
27%
26%
26%
19%
20%
-30% -7%
-33% -11%
Depreciation & Stumpage
(37.148) (40.087) (41.355) (42.115)
(41.200)
(43.334)
(44.447)
(49.873)
3%
7%
Operating Income
66.041
59.229
76.034
38.597
55.221
-49%
-53%
Financial Income Financial Expenses
893 866 1.088 (10.024) (10.369) (10.023)
53%
213%
10% -4,4 x
7% -4,4 x
-227%
5388%
-111%
-103%
-68%
-58%
-44%
43%
-60% -7%
-72% -14%
% EBITDA/sales
(EBITDA + F. Income)/F. Expenses (times)
Other Non-Operational Income / (Expenses) Price Level Restatement Income Taxes Minority Interest Net Income % Income/sales
29%
29%
71.785
30%
82.382
62.864 1.150 (8.324)
1.191 (8.292)
2.230 (9.718)
3.410 (10.688)
3.237 (11.839)
12,8 x
12,3 x
12,5 x
8,1 x
9,2 x
912 537 (37) (2.508) (4.901) 16.759 19.412 15.255 (10.425) (13.191) (15.753) (11.254) (811) (384) (509) (347) 41.685 66.004 76.561 56.836
(1.656) 11.917 (6.960) 140 55.570
1.617 5.266 (20.826) (1.311) 53.292
(2.058) (572) (6.590) (729) 21.370
(2.220) (38.387) (11.971) (2.568) (8.526)
14%
12%
5%
-2%
10,4 x
12%
10,9 x
17%
12,5 x
19%
14%
Exhibit 2a: Consolidated Balance Sheet Consolidated Balance Sheet 2007
2008
1Q
2Q
3Q
4Q
1Q
539,21
526,86
511,23
496,89
437,71
Current Assets Cash and Marketable Securities Accounts Receivable Sundry Debtors Inventories Other Current Assets
1.454,4 1.426,9 1.536,6 1.604,3 159,6 124,2 177,4 167,1 531,9 542,8 566,9 583,8 56,6 43,1 48,1 58,5 654,5 664,1 685,2 725,7 51,8 52,6 58,9 69,2
Fixed Assets (Net)
5.189,1 5.360,1 5.662,6 6.088,4
Million of US$ Dollars as of the End of Each Quarter
Other Assets TOTAL ASSETS Current Liabilities Short Term Financial Liabilities Long Term Financial Liabilities - Short Term Portion Accounts Payable Provisions and Withholdings Other Current Liabilities Long Term Liabilities Liabilities to Banks and Financial Institutions Bonds Issued Notes Payable and Sundry Creditors (denominated in US Dollars) Other Long Term Liabilities Minority Interest
4Q08
2Q 526,05
3Q 551,31
4Q 636,45
1.895,0 253,9 663,5 64,1 834,2 79,3
2.051,6 471,1 645,3 52,9 800,2 82,1
1.869,2 314,6 575,4 59,3 841,8 78,1
1.773,0 229,3 593,0 63,0 797,1 90,5
6.866,3
5.841,4
5.715,9
234,9
294,4
259,3
6.823,6 6.969,9 7.422,1 7.927,6
9.055,6
8.152,3
180,1
715,9 246,6 100,4 318,1 49,7 1,0
183,0
594,6 192,1 58,6 287,1 55,3 1,6
223,0
750,2 206,5 176,5 294,1 66,1 7,0
811,5 168,6 167,5 402,1 69,2 4,0
1.498,6 1.541,3 1.486,8 1.503,2 618,1 631,7 515,5 493,8 674,8 688,8 712,7 734,4 8,2 5,6 5,6 4,0 197,4 215,2 253,0 271,0 121,1
118,4
125,2
1.063,0 318,4 285,8 373,2 64,0 21,7 1.513,3 381,3 798,2 4,0 329,8
959,7 259,4 288,0 360,1 52,1 0,0
QoQ
YoY
15%
28%
-5%
11%
-27%
37%
3%
2%
6%
8%
-5%
10%
16%
31%
5.574,4
-2%
-8%
226,1
220,1
-3%
-6%
7.811,3
7.567,6
-3%
-5%
844,8 150,8 263,0 372,3 55,3 3,4
841,4 143,6 265,3 368,7 54,0 9,8
1.657,1 1.540,2 635,2 556,0 723,5 718,8 0,0 0,0 298,4 265,4
1.483,4 566,8 670,8 5,6 240,3
0%
4%
-5%
-15%
1%
58%
-1%
-8%
-2%
-22%
185%
143%
-4%
-1%
2%
15%
-7%
-9%
45168%
41%
-9%
-11%
139,0
156,9
131,1
130,2
135,4
4%
-3%
Shareholders' Equity
4.488,0 4.715,6 5.059,9 5.474,0
6.322,4
5.404,4
5.296,1
5.107,4
-4%
-7%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
6.823,6 6.969,9 7.422,1 7.927,6
9.055,6
8.152,3
7.811,3
7.567,6
-3%
-5%
Note: Figures on the Balance Sheet are based on quarterly FECUs of Empresas CMPC S.A. And are in USD million as of the end of each quarter.
Exhibit 2b: Consolidated Balance Sheet Consolidated Balance Sheet 2007 Million of Ch Pesos as of the End of Each Quarter
Current Assets Cash and Marketable Securities Accounts Receivable Sundry Debtors Inventories Other Current Assets
1Q
2Q
2008 3Q
751.752 65.444 285.980 22.727 349.909 27.691
2.798.015
2.824.027
97.119
96.401
3.679.341
3.672.179
Current Liabilities Short Term Financial Liabilities Long Term Financial Liabilities - Short Term Portion Accounts Payable Provisions and Withholdings Other Current Liabilities
386.026 132.982 54.145 171.544 26.826 530
313.292 101.213 30.869 151.270 29.118 821
383.535 105.590 90.246 150.333 33.771 3.595
403.227 83.770 83.246 199.805 34.408 1.997
465.307 139.379 125.079 163.343 27.996 9510
Long Term Liabilities Liabilities to Banks and Financial Institutions Bonds Issued Notes Payable and Sundry Creditors (in US Dollars) Other Long Term Liabilities
808.043 333.298 363.866 4.413 106.466
812.055 332.802 362.924 2.932 113.396
760.097 263.560 364.337 2.851 129.349
746.908 245.353 364.916 1.964 134.674
65.305
62.368
64.003
Shareholders' Equity
2.419.965
TOTAL LIABILITIES AND EQUITY
3.679.341
Other Assets TOTAL ASSETS
Minority Interest
797.137 83.025 290.072 29.070 360.571 34.398
1Q
784.206 86.075 286.823 30.497 352.889 27.923
Fixed Assets (Net)
785.542 90.675 289.837 24.612 350.303 30.114
4Q
2.894.868 3.025.260
2Q
3Q08 3Q
4Q
829.441 1.079.254 1.030.533 1.128.421 111.129 247.827 173.467 145.967 290.418 339.470 317.247 377.438 28.047 27.836 32.688 40.089 365.138 420.926 464.093 507.303 34.708 43.194 43.038 57.624
QoQ
YoY
9%
42%
-16%
76%
19%
30%
23%
38%
9%
41%
34%
68%
3.005.452
3.072.869
3.151.246
3.547.858
13%
17%
116.742
128.845
136.404
124.647
140.111
12%
20%
3.794.389 3.939.138
3.963.738
4.288.527
4.306.427
4.816.390
12%
22%
504.856 136.441 151.527 189.456 27.432 0
465.759 83.143 144.999 205.262 30.464 1.890
535.513 91.395 168.857 234.652 34.397 6.212
15%
33%
662.374 166.882 349.361 1.758 144.374
871.712 334.158 380.595 0 156.959
849.118 306.505 396.265 7 146.341
944.111 360.717 426.913 3.556 152.925
69.048
68.695
68.983
71.781
2.484.465
2.586.755 2.719.955
2.767.363
2.842.969
3.672.179
3.794.389 3.939.138
3.963.738
4.288.520
113.980
10%
9%
16%
103%
14%
17%
13%
0%
229%
211%
11%
26%
18%
47%
8%
17%
52159%
81%
4%
14%
86.191
20%
25%
2.919.770
3.250.576
11%
20%
4.306.427
4.816.390
12%
22%
Exhibit 3: Consolidated Cash Flow Statement Cash Flow Statement
(1) 4Q 08
Millions of US$ Dollars as of the End of Each Quarter
4Q07
3Q08
4Q08
%Q oQ
498,47
523,59
656,99
Cash flows from operating activities
143,8
101,6
44,2
-56%
-69% -111%
Net income
25%
% YoY
Exchange Rate
32%
114,0
40,8
(13,0)
-132%
Profit on sale of fixed assets
(0,3)
0,1
(0,0)
-149%
-91%
Charges not representing movement of funds
203% 161%
45,6
88,3
138,1
56%
(33,1)
(28,1)
(86,3)
207%
16,9
(0,8)
1,5
-287%
-91%
0,7
1,4
3,9
181%
461%
Cash flows from financing activities
(75,4)
(232,8)
4,9
-102%
-106%
Loans received
263,7
122,0
99,8
-18%
-62%
0,0
0,0
0,0
0%
0%
Changes in assets which affect cash flows Changes in liabilities which affect cash flows Minority interest
Bonds issued Payment of dividends
1,7
(48,5)
(0,1)
-100%
-106%
(340,8)
(306,5)
(94,8)
-69%
-72%
Payment of bonds
0,0
0,0
0,0
0%
0%
Payment of bonds assuance costs
0,0
0,0
0,0
0%
0%
(83,0)
(34,2)
0,0
0,3
Payment of loans
Cash flows from investment activities Proceeds from sale of fixed assets Other income of investments
(99,0)
189%
19%
0,0
-90%
4041%
0,0
12,1
(9,8)
-181% -
Capital expenditures
(66,2)
(58,8)
(82,4)
40%
24%
Permanent investments
(15,8)
0,0
0,0
0%
-100%
Net increase (decrease) in cash and cash equivalents
(19,3)
(159,0)
(46,7)
-71%
142%
(0,0)
(0,0)
0,1
-497%
-611%
(19,3)
(159,1)
(46,6)
-71%
141%
Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Notes (1)
Figures are based on the quarterly consolidated financial statements of Empresas CMPC S.A. filed in the "Superintendencia de Valores y Seguros" (SVS), and are denominated in millions of US Dollars as follows: Value TUS$ =[ FECU Value T - FECU Value T-1 * (1+ CPI) quarter ] / Average Exchange Rate
Exhibit 4: Sale Volumes Volumes Domestic
4Q 2008 vs 3Q 2008
Exports
Domestic Markets Forestry and Wood Products
Tissue Products
(2)
Paper, Boxboard and Newsprint Boxboard Newsprint Converted Products
4Q 08
3Q 08
4Q 08
3Q 08
4Q 08
622,8
571,6
222,8
189,9
845,6
761,6
-10%
76,1
74,7
180,0
148,4
256,2
223,0
-13%
(Th. Tons)
4,0
2,8
289,9
403,5
293,9
406,3
38%
(Th. Tons)
80,2
78,6
1,0
0,7
81,2
79,3
-2%
(Th. Tons)
82,2 15,3 14,0 60,5 33,8
73,5 14,8 12,6 64,5 45,1
123,0 75,2 38,3 5,6 2,0
111,9 65,0 38,2 5,8 2,1
205,2 90,5 52,3 66,1 35,8
185,3 79,8 50,8 70,3 47,2
-10% -12% -3% 6% 32%
(Th. Tons)
Corrugated Boxes (1) (2)
QoQ
3Q 08 (Th. m3ssc)
Sawnwood & Plywood Pulp
Total Sales
(1)
Considers Chile and Foreign Subsidiaries Excluding sales of diapers and feminine care products.
Volumes Domestic
3Q 2008 vs 2Q 2008
Exports
Domestic Markets Forestry and Wood Products
(Th. m3ssc)
Sawnwood & Plywood Pulp Tissue Products
(2)
Paper, Boxboard and Newsprint Boxboard Newsprint Converted Products
(2)
YoY
4Q 07
4Q 08
4Q 07
4Q 08
4Q 07
4Q 08
604,8
571,6
238,2
189,9
843,0
761,6
-10%
72,1
74,7
197,7
148,4
269,8
223,0
-17%
(Th. Tons)
3,6
2,8
388,4
403,5
392,0
406,3
4%
(Th. Tons)
69,1
78,6
0,9
0,7
70,0
79,3
13%
(Th. Tons)
83,7 14,3 15,6 61,4 45,1
73,5 14,8 12,6 64,5 45,1
102,6 63,8 35,8 6,7 2,0
111,9 65,0 38,2 5,8 2,1
186,4 78,1 51,4 68,2 47,1
185,3 79,8 50,8 70,3 47,2
-1% 2% -1% 3% 0%
(Th. Tons)
Corrugated Boxes (1)
Total Sales
(1)
Considers Chile and Foreign Subsidiaries Excluding sales of diapers and feminine care products.
This document provides selected general financial information about Empresas CMPC S.A. It is not a complete description of the financial condition or results of operation of the company. For additional information about the company we urge you to review the annual consolidated financial statements and corresponding notes (which are an integral part thereof) filed by Empresas CMPC S.A. with the Superintendency of Securities and Insurance of Chile [Superintendencia de Valores y Seguros, Chile] in accordance with applicable laws and regulations. You may obtain copies of these financial statements on our website at www.cmpc.cl on the investors section.