Empresas CMPC S.A. Fourth Quarter 2010 Results th March 4 , 2011
4Q10
Rebuilding project of the Laja mill (NSKP) – December 2010
4Q10 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
Between 1953 and until 1959, CMPC built in Laja what became the first pulp mill in Chile and the second in Latin America. By then, this was a town whose population reached 20,000 inhabitants in 1965 from 2,500 in 1953, showing the fastest demographic growth in Latin America, according to ECLAC. In 2009, CMPC’s Board of Directors approved a US$ 300 million investment to modernize this industrial complex. This project, currently th under way, is the best gift that the Laja Pulp Mill could receive for its 50 anniversary. This project will take the mill into the future, united in a common destiny with the town it grew up with.
Conference Call th Date: Friday, March 4 , 3:00 PM Eastern Time 5:00 PM Santiago de Chile’s Time US Toll Free: (+1 888) 482 0024 International Dial: (+1 617) 801 9702 Password: 140 518 28
4Q10
4Q10 in Brief
During the quarter, CMPC registered an increase in its sales, when compared with those reached in the third quarter of the year. This was mainly explained by the higher sale volumes of the Paper Products division - due to seasonality of the fruit season in Chile-, as well as the higher Pulp export volumes, especially those with destination to China. Nevertheless, the latter was slightly reversed by lower prices which diminished by 2% and 6% for softwood and hardwood respectively. On the other hand, CMPC registered a 6% diminution in its EBITDA, when compared to that reached in the third quarter of the year. This was basically explained by an increase in the prices of certain raw materials and freights, in addition to the negative effect that has resulted from the depreciation of the US dollar over all the costs denominated in local currencies. Finally, during the quarter a US$61 million compensation from insurance companies was recognized in the "Other gains, losses" account, corresponding to business interruption claims due to the earthquake.
•
CMPC’s consolidated sales for 4Q10 reached US$1,150 million, registering a 2% increase when compared to those of 3Q10. During the quarter, there were higher sale prices in all divisions, except from Forestry and Pulp. On the other hand, sale volumes increased in all business areas, except from Paper and Tissue.
•
Consolidated EBITDA reached US$302 million during 4Q10, showing a 6% decrease when compared to that of 3Q10. This was mainly explained by the higher Operating costs and Other operating expenses, which could not be reversed by the higher level of consolidated sales. The EBITDA margin reached 26%, three points lower than that of the previous quarter.
•
CMPC registered a Net Income of US$182 million during 4Q10; showing a 28% decrement when compared to that of 3Q10. This was mainly explained by the lower level of EBITDA, as well as the higher Income taxes registered during the quarter.
•
CMPC’s net debt as of the end of 4Q10 stood at US$2,185 million, presenting a US$63 million decrease when compared to that as of September 30th, 2010. This was mainly explained by a US$90 million loan amortization. However, the above was slightly offset by the negative effect of the dollar depreciation in loans denominated in local currencies. CMPC closed the quarter with US$2,834 of total debt and US$650 million of cash (defined as: cash and cash equivalents + term deposits within 90 to 360 days of maturity).
Key Figures
2
US$ Million
4Q09
3Q10
4Q10
∆%Q/Q
∆%Y/Y
FY 2009
FY 2010
∆%Y/Y
Sales EBITDA EBITDA Margin Net Income
915 210 23% 123
1,125 322 29% 254
1,150 302 26% 182
2% -6% -2% -28%
26% 44% 3% 48%
3,124 644 21% 268
4,219 1,138 27% 640
35% 77% 6% 139%
CAPEX
1,357
131
160
22%
-88%
1,641
656
-60%
Total Assets Net Debt Market Capitalization
12,098 2,104 8,749
12,733 2,248 11,839
12,876 2,185 11,699
1% -3% -1%
6% 4% 34%
12,098 2,104 8,749
12,876 2,185 11,699
6% 4% 34%
Closing Exchange Rate Average Exchange Rate
507.10 511.25
483.65 503.17
468.01 481.53
-3% -4%
-8% -6%
507.10 554.22
468.01 510.38
-8% -8%
Forestry
Pulp
Papers
Tissue
Paper Products
4Q10
Income Statement Analysis
Total revenues reached US$1,150 million during the quarter, a 2% higher when compared to those of 3Q10. During the quarter, there were higher sale prices in all business areas, except from Forestry and Pulp. It is important to highlight the increase registered in the prices of all Paper grades, especially in those of packaging paper, newsprint and boxboard. Moreover, Tissue prices (measured in US dollars) also increased during the quarter, mainly explained by the appreciation of local currencies. However, Forestry prices showed a decrement, in response to a higher supply worldwide, as well as the slow activity showed in some foreign markets, such as the United States. On the other hand, sale volumes were positively affected in the Pulp division, due to higher exports. In the Paper Products business, volumes were also higher due to the seasonality of the fruit export business in Chile. Finally, the additional tissue volumes produced by the new machines in Mexico and Colombia were not enough to compensate the lower volumes sold in the Chilean, Argentinean and Brazilian markets.
Sales Breakdown Analysis to Third Parties
Total Revenues Evolution 1,125
1,150
3Q10
4Q10
915
4Q09
CMPC’s consolidated EBITDA reached US$302 million, 6% lower than 3Q10’s EBITDA. This growth is mainly explained by the higher EBITDA of the Forestry, Pulp and Tissue divisions. Nevertheless, this was partly offset by an increase in the EBITDA of the Paper and Paper Products businesses.
EBITDA Variation by Business
EBITDA Evolution 322
302
322 +7 -17
210
4Q09
3Q10
EBITDA 3Q10
4Q10
Forestry
-8
Pulp
+2
302
Paper Products
EBITDA 4Q10
-4
Papers
Tissue
Net Income during the quarter reached US$182 million, a 28% inferior than that of 3Q10. This decrease was mainly explained by the lower level of EBITDA, as well as the higher Income Taxes registered during the quarter. All the above could not be reversed by the higher net financial income, as well as the lower Price level restatement adjustment showed during the quarter.
Net Income Analysis
Net Income Evolution 254 182 123
4Q09
Forestry
3Q10
Pulp
4Q10
Papers
Tissue
Paper Products
3
3
4Q10
Income Statement Analysis Sales to Third Parties Breakdown by Destination FORESTAL
A breakdown of CMPC’s sales to third parties by destination during 4Q10 shows that 50% of the sales correspond to exports, 25% to the domestic market in Chile and 25% 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 years. This is mainly explained by the strong internationalization process undertaken by the Company through Latinamerica.
CMPC’s sales breakdown to third parties by business for 4Q10 shows that the Pulp and Tissue 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 9% and 8% of total revenues respectively. It is important to note that this is the second consecutive quarter that Pulp sales exceed those of Tissue. This had not happened since 2Q08. CMPC’s EBITDA breakdown by business for 4Q10 shows that the Forestry division decreased its contribution to consolidated EBITDA. This was mainly explained by a decline in its sales, in response to the lower prices achieved in the quarter. During 4Q10, the Paper and Paper Products businesses showed an increase on its EBITDA, both due to a higher level of sales. On the other hand, Pulp’s total EBITDA was affected by the higher prices of some raw materials, as well as by the expenses associated with the maintenance works realized during 4Q10 in all CMPC’s Chilean pulp facilities. Finally, Tissue’s EBITDA showed a decrement, beside the slight increase registered in it sales. This was mainly due to the start up of the Colombian and Mexican projects in August 2010, which implied an increase in costs related to marketing and distribution activities due to the new capacity.
3Q10 Sales Breakdown by Business Area Paper Prod. 7%
4Q10 Sales Breakdown by Business Area Paper Prod. 8%
Forestry 10%
Forestry 9%
Tissue 31%
Tissue 32%
Pulp 35%
Pulp 34%
Papers 17%
Papers 17%
3Q10 EBITDA Breakdown by Business Area
Tissue 13%
.
Paper Prod. 2%
4Q10 EBITDA Breakdown by Business Area
Tissue 13%
Forestry 14%
Papers 13%
Forestry
Forestry 9%
Papers 16%
Pulp 59%
Pulp 58%
4
Paper Prod. 3%
Pulp
Papers
Tissue
Paper Products
4Q10
Income Statement Analysis
The Forestry and solid wood business registered a 9% decrease in sales (-US$11 million) during this period when compared to those of 3Q10, mainly explained by a 13% weakening on its average sale price. This was primarily due to a higher level of supply from New Zealanders and Chilean producers in Asia; a slow construction activity in the United States; a seasonality effect due to the northern hemisphere winter; and a stabilization in the Chilean demand after the earthquake, among other factors. Nevertheless, this was partially offset by a 4% increment in sale volumes. This was the case of pulpwood (+29%), and plywood (+1%). On the other hand, volumes of remanufactured wood, sawn wood and sawing logs decreased by 17%, 7% and 2% respectively. This was mainly explained by the lower construction and home improvement activity undertaken in the northern hemisphere due to adverse weather conditions.
FORESTRY
∆% Sales: -9% ∆% Volumes: +4% ∆% Price: -13%
Pulp sales increased by 4% (+US$516 million) during 4Q10 when compared to those of 3Q10. This was mainly due to a 9% and 5% increase in the volumes sold of hardwood and softwood respectively. It is important to highlight that during the quarter export volumes destinated to China of both hardwood and softwood increased in a 52% and 106% respectively. This was partially offset by a 10% reduction in the shipments of softwood destinated to Europe, as well as a decrease of 13% and 27% in the volumes sold to Europe and Asia (excluding China). Nevertheless, this effect was partially offset by a 2% reduction in pulp average effective price (including the sales of P&W integrated papers). Average effective price reached CIF 805 US$/ton and CIF 737 US$/ton for softwood and hardwood respectively. During this period, the spread between both fibers reached CIF 68 US$/ton.
PULP
∆% Sales: +4% ∆% Volumes: +7% ∆% Price: -2%
Paper business during 4Q10 registered a 3% increase (+US$1 million) in consolidated sales, when compared to those of 3Q10.
PAPERS
A breakdown of the different paper grades in this business shows that newsprint volumes registered a 3% decrease when compared to those of 3Q10. Additionally, prices raised by 6%, following the upward trend registered in foreign markets since January 2010. On the other hand, boxboard prices increased 6% when compared with those of 3Q10, mainly driven from the higher demand coming from certain markets such as Brazil. Nevertheless, sale volumes were up down 2%. This was mainly explained by the adverse weather conditions registered in Europe, which have obstructed the delivery process. Finally, packaging paper sale volumes were down by 9% compared to those of the previous quarter, due to the higher level of inventories handled by some clients, as well as the delay in the fruit export season in Chile. The above was offset by a 10% increment in sale prices.
∆% Sales: +3% ∆% Volumes: -3% ∆% Price: +5% TISSUE
∆% Total Sales: 0% ∆% Volumes: Paper:-3%/Diapers&FCP:-10% ∆% Price: Paper: +12%/Diapers&FCP:-17%
Tissue business, including operations in Chile, Argentina, Peru, Uruguay, Mexico, Colombia, Ecuador and Brazil, remained its sales practically unchanged (+US$1 million) during 4Q10, when compared to those of 3Q10. Sale volumes showed a reduction, beside the entrance of the new paper machines in Mexico and Colombia. This was mainly explained by a reduction in the volumes sold in the Chilean, Argentinean and Brazilian markets. During the quarter, volumes of tissue paper products were down by 3%, whereas those of diapers and feminine care products decreased by 10%. Finally, average sale price (measured in US Dollars) decreased 17% in the case of diapers & feminine care products; whereas those of tissue paper increased by 12% when compared to those of 3Q10. The latter was mainly explained by local currencies appreciation, which increased tissue prices when measured in US Dollars. Paper products business during 4Q10 registered a 19% increase (+US$15 million) in sales compared to those of 3Q10. This increment is mainly attributable to the proper seasonality of the fruit export season in Chile. However, this season Chilean fruit matured later as a result of weather conditions. However, the better economic scenario increased Industrial boxes volumes. All the above resulted in a 30% rise in corrugated boxes volumes when compared to those of the previous quarter. On the other hand, molded pulp trays felt by 22% in volumes, while Paper bags volumes fell 8%. The average selling price recorded a raise of 3%, when compared to that of the previous quarter.
PAPER PRODUCTS
∆% Sales: +19% ∆% Volumes: -+16% ∆% Price: +3%
Forestry
Pulp
Papers
Tissue
Paper Products
5
4Q10
Income Statement Analysis
Operating costs excluding depreciation, stumpage and decrease due to harvest amounted to US$706 million, 6% higher than those of 3Q10. At a consolidated level, Operating costs in 4Q10 were 61% of total sales, two points higher than that of 3Q10. Other operating expenses reached US$143 million, 6% higher than that of 3Q10. This was mainly explained by the raise in Administration costs and Other operational expenses. This account represented 12% of total sales, the same percentage than that recorded in 3Q10. Financial expenses during 4Q10 remained at the same level when compared with those of 3Q10. On the other hand, CMPC’s Financial Income registered a 51% increment when compared to that of 3Q10, totaling US$6 million. This was mainly explained by higher investment rates due to the longer terms of investments undertaken by the Company during the quarter. Moreover, during this period there were higher Share results in associated companies. Regarding Exchange rate differences, the depreciation of the dollar against the Chilean peso had negative results during 4Q10, registering a US$10 million loss. Price level restatement is caused by the variation experienced by the balance sheet accounts registered in UF (or Unidades de Fomento). The US$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$49 million gain was recognized under this account. It is important to highlight that during the quarter a US$61 million compensation from insurance companies was recognized in the "Other gains, losses" account, corresponding to business interruption claims due to the earthquake. Income taxes for the period implied a US$13 million expense, registering an US$35 million increment when compared with that of the previous quarter.
6
Forestry
Pulp
Papers
Tissue
Paper Products
4Q10
Balance Sheet Analysis st
th
As of December 31 2010, Current assets registered a 3% increase when compared with those as of September 30 , 2010. It is important to note that the Cash and cash equivalents account showed a 43% decrement, as a consequence of the reclassification of term deposits within 90 to 360 days of maturity from this account to Other financial assets. Cash resulted benefitted from the higher operational cash flow, as well as from the advance payment received from insurance companies as a consequence of business interruption effects. Nevertheless, this was partially offset of the disbursements used for the payment of loans and dividends. On the th other hand, Non current assets remained stable when compared to those as of September 30 , 2010. th
Current liabilities were up by 1% when compared with those as of September 30 , 2010. On the other hand, Non current liabilities th presented a 1% decrease when compared with those as of September 30 , 2010. st
CMPC’s financial debt stood at US$2,834 million as of December 31 2010, showing a US$55 million decrement when compared to th that as of September 30 , 2010. This was mainly explained by a US$90 million loan amortization. The above was slightly reversed by the negative effect of the dollar depreciation in loans denominated in local currencies. On the other hand, CMPC’s net financial debt st reached US$2,185 million as of December 31 2010, registering a reduction of US$63 million when compared to that as of September th 30 , 2010. It is important to highlight that CMPC closed the quarter with US$650 million of cash. On the other hand, the Net financial debt/EBITDA ratio registered a QoQ variation from 2.2 to 1.9 times, mainly explain by the higher EBITDA generation. Moreover, the financial coverage ratio and the Financial debt / Tangible net worth ratio also showed a favorable financial evolution during the quarter, when compared to that observed in 3Q10. As of the end of 4Q10, 70% of CMPC’s debt was denominated in US$, 22% was denominated in Chilean pesos (or Unidades de Fomento) and the balance in other local currencies. On the other hand, 74% of CMPC’s total financial debt has a fixed interest rate, whereas the balance has a floating interest rate.
st
Debt Breakdown as of December 31 , 2010 (i) (ii) (iii) (i) (ii) (iii)
In Million US$
4Q09
3Q10
4Q10
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
443 2,509 (45) (49) 0.45 5.82
476 2,533 (43) (68) (3) (6)
468 2,516 (53) (86) (4) (7)
-2% -1% 22% 26% 37% 17%
6% 0% 19% 76% -965% -223%
Total Debt ( (i) + (ii) + (iii) + (iv) + (v) + (vi) )
2,866
2,889
2,834
-2%
-1%
Cash*
∆% QoQ ∆% YoY
761
641
650
1%
-15%
Net Debt
2,104
2,248
2,185
-3%
4%
Average Cost of Debt
4.6%
4.4%
4.4%
0.0%
-0.2%
*Cash and cash equivalents + Term deposits w ithin 90 to 360 days of maturity
st
Amortization Schedule as of December 31 , 2010
380 297
369
505
489
2019
Thereafter
Financial Ratios Evolution
303
179 43 2011
2012
2013
2014
2015
2016
Shareholders’ Equity presented a US$162 million increase when compared to that of 3Q10. This is mainly due to the higher Retained Earnings registered during the quarter, as well as the superior Other reserves.
Forestry
Pulp
Papers
Tissue
Paper Products
7
4Q10
Relevant Events
8
•
CMPC’s board approves in November the expansion of the Maule boxboard mill: this new project implies a total investment of approximally US$63 million for 65 thousand tons of additional production capacity per year. This project should start operations in 1H12. With this investment, CMPC’s installed boxboard capacity will reach close to 500 thousand tons of boxboard per year.
•
CMPC’s board approves in November the construction of a new paper bags plant in Guadalajara: this new project implies a total investment of approximally US$20 million for 200 million units of paper bags production capacity per year. This project should start operations in 2013.
•
A CLP$120 (US$0.25) cash dividend was paid: CMPC’s board approved in November a CLP$120 dividend to be paid on nd each outstanding share. This dividend was paid on December 22 , 2010.
•
On January 6, 2011, the Board of Directors appointed Hernán Rodríguez (47) as the new Corporate Chief Executive Officer of Empresas CMPC, effective April 28, 2011: CMPC’s current CEO, Arturo Mackenna (64), will continue in his position until April 28, 2011. Following his departure, he will continue to serve on the board of directors of Empresas CMPC, as well as in its subsidiaries CMPC Tissue and CMPC Pulp. Hernán Rodriguez studied engineering at the Pontificia Universidad Católica de Chile and received an MBA from the University of California, Los Angeles (UCLA). He joined CMPC in 1987, and he is currently working as Chief Executive Officer of CMPC Forestry. Francisco Ruiz Tagle (47) will assume as Chief Executive Officer of CMPC Forestry. Francisco is currently the Chief Executive Officer of CMPC Paper Products. On the other hand, Sergio Colvin (63) presented his renounce as Chief Executive Officer of CMPC Pulp. Following his departure, he will assume as Chairman of Celulose Riograndense’s Board next April. Washington Williamson (60) will assume as Chief Executive Officer of CMPC Pulp. Washington is currently the Chief Executive Officer of CMPC Papers. Eduardo Serrano (52) will assume as Chief Executive Officer of CMPC Papers. Eduardo is currently the Chief Executive Officer of CMPC Tissue Chile. On the other hand, Jorge Morel (51) was confirmed as Chief Executive Officer of CMPC Tissue. Jorge has been the Chief Executive Officer of CMPC Tissue since 2000. Jorge Navarrete (51) will assume as Chief Executive Officer of CMPC Paper Products. Jorge is currently the Chief Executive Officer of Forsac S.A. Finally, Luis Llanos (48) was confirmed as CMPC’s Chief Financial Officer and Corporate Development Officer. Luis has been CMPC’s Chief Financial Officer since 2004.
•
CMPC issued a US$500 million International benchmark bond: on January 13 , 2011, Inversiones CMPC S.A. issued a US$500 million international benchmark bond under the 144A-S regulation of the United States Securities Act. The transaction was under the guaranty of Empresas CMPC, acting through its Cayman Island Agency. This bullet bond has a maturity term of 7 years, with semiannual interest payments. Issue effective rate was 4.83%, which was equivalent to CT7 + 220 Bps of spread. The funds should be used for general corporate purposes. JPMorgan, Citi/Banchile and Itaú acted as joint book-running managers.
•
Summary of the damages and compensations of the earthquake and tsunami that affected Chile on February 27 , 2010: regarding the damages to fixed assets and inventories, these effects were recognized under the Other gains and losses account. This damages amount to US$49.7 million, considering repairing expenses, after deducting an estimation to be received by the insurance companies. The adjustment process is on its final stage, and the Company hopes to be concluding it (including all the payments of compensations) during 1H11. Regarding business interruption losses, the effects were recognized right after the sinister in the Company’s financial st statements through the recognition of lower margins as a result of the lower sales, costs and expenses. As of December 31 , 2010 the adjustment process was concluded. Total compensation amounted US$111 million. This item was recognized under the Other gains and losses account.
th
th
Forestry
Pulp
Papers
Tissue
Paper Products
4Q10
Consolidated Balance Sheet
2009 1Q09
Figures in Th. US$*
2Q09
2010 3Q09
4Q09
1Q10
2Q10
4Q10 3Q10
4Q10
QoQ
YoY
Current Assets Cash and Cash Equivalents Operative Receivables Inventories Biological Assets Tax Assets Other Current Assets
2,261,127 534,976 647,847 737,341 173,246 65,847 101,870
2,205,876 576,466 615,483 672,353 183,810 75,502 82,262
2,469,957 846,121 618,466 683,283 184,022 47,078 90,987
2,601,632 735,736 694,044 753,644 162,869 121,080 134,259
2,410,878 661,744 703,626 722,127 157,499 64,329 101,554
2,546,913 565,451 793,189 790,956 177,037 89,326 130,954
2,926,057 641,364 894,398 883,862 198,072 113,883 194,478
3,027,727 364,529 920,779 958,477 219,169 138,873 425,900
Non Current Assets Intangible Assets, Different from Goodwill Goodwill Property, Plant and Equipment, Net Biological Assets Deferred Tax Assets Other Non Current Assets
7,782,718 89,283 4,948,937 2,561,814 66,143 116,541
7,910,034 4,898 85,052 4,968,901 2,557,026 79,770 214,387
8,088,879 5,064 163,729 5,141,221 2,560,838 85,219 132,808
9,495,917 113,499 161,800 5,951,606 2,990,507 110,624 167,881
9,796,378 92,991 198,736 6,057,860 3,115,910 156,794 174,086
9,775,173 95,765 222,139 6,065,060 3,091,345 114,934 185,930
9,806,466 124,388 140,702 6,132,445 3,085,314 134,745 188,872
9,848,729 11,712 164,866 6,204,558 3,142,319 136,663 188,611
10,043,845
10,115,910
10,558,836
12,097,549
12,207,256
12,322,086
12,732,523
12,876,456
1%
6%
795,415 352,219 335,021 108,175
859,749 466,674 297,732 95,343
848,277 367,085 375,953 105,239
1,132,576 472,973 453,746 205,857
1,065,965 472,208 429,293 164,464
1,214,397 487,455 502,444 224,498
1,311,004 513,857 571,905 225,242
1,320,951 501,376 583,723 235,852
1%
17%
2,684,265 1,658,010 970,997 55,258
2,689,374 1,621,404 951,040 116,930
3,103,706 1,868,071 948,056 287,579
3,706,880 2,516,940 941,646 248,294
3,829,768 2,487,931 1,096,927 244,910
3,726,105 2,395,293 1,092,689 238,123
3,758,762 2,533,938 949,857 274,967
3,733,774 2,516,437 934,315 283,022
153,567
153,675
153,768
157,648
157,508
158,321
159,649
156,321
6,410,598
6,413,112
6,453,085
7,100,445
7,154,015
7,223,263
7,503,108
7,665,410
2%
8%
10,043,845
10,115,910
10,558,836
12,097,549
12,207,256
12,322,086
12,732,523
12,876,456
1%
6%
TOTAL ASSETS Current Liabilities Other Financial Liabilities Operative Liabilities Other Current Liabilities Non Current Liabilities Other Financial Liabilities Deferred Tax Liabilities Other Non Current Liabilities Non Controlling Participations Equity Attributable to the Owners of the Controller TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
3%
16%
-43%
-50%
3%
33%
8%
27%
11%
35%
22%
15%
119%
217%
0%
4%
-91%
-90%
17%
-
1%
4%
2%
5%
1%
24%
0%
12%
-2%
6%
2%
29%
5%
15%
-1%
1%
-1%
0%
-2%
-1%
3%
14%
-2%
-1%
* 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
4Q10
Consolidated Income Statement
2009 1Q09
Figures in Th. US$
2Q09
2010 3Q09
4Q10 3Q10
4Q10
937,568 1,006,624 1,124,584 1,150,396 (603,701) (595,643) (666,884) (705,812)
QoQ
YoY
2% 6%
26% 22%
Operating Margin
208,851
230,836
282,587
335,471
333,867
410,981
457,700
444,583
-3%
33%
Other Operating Expenses (2)
(69,544)
(100,974)
(118,115)
(125,556)
(101,005)
(130,024)
(135,284)
(143,041)
6%
14%
EBITDA(3) EBITDA Margin (%)
139,307 20%
129,862 19%
164,472 20%
209,915 23%
232,862 25%
280,957 28%
322,416 29%
301,543 26%
-6% -2%
44% 3%
Depreciation and Stumpage Increase in Biological Assets due to Forests Growth and Price Effects Decrease in Biological Assets due to Harvest
(75,583) 49,105 (32,513)
(78,517) 38,318 (34,315)
(81,551) 38,318 (35,853)
(91,179) 54,815 (26,050)
(96,183) 56,335 (24,263)
(96,151) 72,061 (50,895)
(88,092) 63,360 (46,473)
(106,300) 38,605 (49,356)
21% -39% 6%
17% -30% 89%
80,316
55,348
85,385
147,501
168,750
205,973
251,211
184,492
-27%
25%
(18,410) 3,289 2,968 (38,943) 9,372 (12,320) 27,121
(21,905) 2,812 6,805 (41,213) 1,940 (7,207) 31,541
(29,446) 1,968 3,486 17,719 2,702 (734) (17,638)
(33,850) 2,608 3,991 710 (3,061) (35,164) 40,528
(33,135) 1,450 3,750 1,930 (2,172) (27,467) (32,885)
(32,674) 1,936 2,244 5,894 (7,832) (1,535) (50,881)
(34,383) 4,254 6,449 (21,843) (5,660) 32,656 21,685
(34,480) 6,440 5,037 (10,308) (4,920) 49,338 (13,294)
0% 51% -22% -53% -13% 51% -161%
2% 147% 26% -1552% 61% -240% -133%
53,393
28,119
63,442
123,263
80,222
123,126
254,370
182,304
-28%
48%
Net Income
914,770 (579,299)
2Q10
698,394 (489,543)
Financial Expenses Financial Income Share Results in Associated Companies Exchange Rate Differences Price Level Restatement Other Gains (Losses) Income Taxes
819,150 (536,563)
1Q10
Sales Operating Costs (1)
Operating Income
691,295 (460,459)
4Q09
(1) Operating Expenses are calculated as: Costs of Sales minus Stumpage minus Decrease in Biological Assets due to Havest minus Depreciation (2) Other Operating Expenses are calculated as: Distribution Costs plus Administration Expenses plus Other Functional Expenses (3) EBITDA is calculated as: Sales minus Operating Costs minus Other Operating Expenses
10
Forestry
Pulp
Papers
Tissue
Paper Products
4Q10
Consolidated Cash Flow Statement
2009 1T09
2010
2T09
3T09
89,755 0 0
187,695 0 0
263,312 0 0
53,393 (27,121) 65,664 0 29,571 (16,592) (2,968) 30,838 (29,606) (13,424) 0 0 (57,343) 0
28,120 (31,541) 66,201 0 31,038 (60,313) (6,805) 133,031 28,763 (799) 0 0 (167,206) 0
0 0 (57,365) 0 (2,762) 0 2,784 0 0 269,672 0 0 361,840 141,485 503,325 (199,573) (16,213) (17,867) 0
(101,960) 276 (74,611) (10,130) 12,188 1,925 5,106 0 0 (3,777) 0 0 44,018 59,923 103,941 (60,181) (30,523) (17,014) 0
Net Increase (Decrease) in Cash and Cash Equivalents Effects of Changes in Exchange Rates on Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning of the Period
302,084 12,711 220,181
Cash and Cash Equivalents at the End of the Period Term deposits within 90 to 360 days of maturity
534,976 0
Figures in Th. US
Cash Flow from Operating Activities Net Income Income Taxes Adjustments Depreciation and Amortization Adjustments Provisions Adjustments Unrealized Exchange Losses Loss (Gain) from Fair Value Adjustments Adjustments for Undistributed Profits of Associates Other Non Cash Items Ajustments Working Capital Adjustments Income Tax Refund (Payment) Cash Flow from Investment Activities Payments to Acquire Subsidiaries or other Businesses Divestments in Property, Plants and Equipment Investments in Property, Plants and Equipment Investments in Other Long Term Assets Derivative Contracts, Options and Swap Charges Dividends Received Interests Received Other Entries (Egresses) of Cash Cash Flow from Financing Activities Proceeds form the Issuance of Short Term Debt Proceeds form the Issuance of Long Term Debt Total Proceeds form the Issuance of Debt Payments of Loans Dividends Paid Interest Paid Other Entries (Egresses) of Cash
Cash at the End of the Period
Forestry
534,976
Pulp
Papers
4Q10
1T10
2T10
3T10
4T10
175,652 0 0
179,015 0 0
177,622 0 0
199,608
233,064
17%
33%
63,442 17,638 70,889 0 (14,324) (49,753) (3,486) 68,031 100,953 9,922
123,263 (40,528) 74,091 41 6,772 (59,841) (17,250) 121,189 (59,527) 27,442 0
123,126 50,881 84,229 12,465 1,937 (127,848) (2,244) 139,340 (109,283) 5,019 0
254,370 (21,686) 73,370 4,942 27,503 (45,066) (6,449) 41,380 (111,669) (17,087)
182,304 13,294 83,083 10,240 15,228 (43,249) (17,480) 39,629 (44,701) (5,284)
-28% -161% 13% 107% -45% -4% 171% -4% -60% -69%
48% -133% 12% 24876% 125% -28% 1% -67% -25% -119%
(30,112)
(1,455,841)
80,222 32,885 84,139 0 242 (32,072) (3,750) 78,923 (48,971) (12,603) 0 0 (215,501) 0
(137,216) 0
(172,082)
(375,641)
118%
-74%
2 (74,313) (17,442) 5,821 1 3,604 0 0
2 (77,996) (5,483) (72,606) 1,189 (1,004) (26,101) 0
2,870 (131,416) (26,153) (15,702) 1,529 (1,214) (203,363) 0
-136% 37% -25% 52% -114% 546% 0%
143400% 68% 377% -78% 29% 21% 679% 0%
1,124,462 0 440,613
(2,437)
(140,161)
5651%
-112%
326,087 766,700 (141,416) 376 (14,818) 513,620 0
0 95 (66,516) (54,936) 8,491 5,408 1,496 (31,254) 0 (119,071) 0 0 0 69,935 69,935 (113,982) (32,551) (34,416) (8,057)
(7,889) (95,884) (34,887) (10,315) 0 8,378 (31,485) 0
63,814 0 0 358,435 358,435 (248,554) (17,307) (28,760) 0 0
(78,000) 12,818 (165,702) 0 12,430 0 2,953 0 0 (44,530) 0 0 0 29,289 29,289 (37,848) (18,775) (17,196) 0
258,750 258,750 (201,198) (35,311) (32,735) 8,057 0
58,819 217,528 (277,064) (56,332) (24,293) 0 0
-77% -16% 38% 60% -26% -100% 0%
-82% -72% 96% -15082% 64% -100% 0%
16,712 24,778 534,976
297,014 (27,359) 576,466
(155,727) 45,342 846,121
(81,016) (18,727) 735,736
(78,665) (17,629) 635,993
25,090 50,824 539,700
(282,739) 31,655 615,613
-1227% -38% 14%
82% -30% -27%
576,466 0
846,121 0
735,736 25,751
635,993 25,238
539,700 25,751
615,613 60,043
364,529 285,396
-41% 375%
-50% 1008%
-4%
-15%
576,466
4T09
846,121
Tissue
761,487
661,231
565,451
675,656
649,925
Paper Products
ToT
AoA
11
4Q10
Sale Volumes
Domestic Sales(1)
(Th. m 3ssc)
Forestry and Wood Products Sawnwood, Remanufactured Wood & Plywood Pulp
(Th. Tons)
Packaging, Printing & Writing Paper, Newsprint and Boxboard (Th. Tons) Boxboard Newsprint Tissue Paper
(Th. Tons)
Paper Products
(Th. Tons) Corrugated Boxes
Exports
4Q10 ∆%Q/Q ∆%Y/Y
Total Sales
4Q09
3Q10
4Q10
4Q09
3Q10
4Q10
4Q09
3Q10
4Q10
701 0 62 0
550
612
225
196
808
59
225
196
948 0 308 0
775
51
247 0 247 0
276
254
409 0 129 81 40 0
442
475 130 82 39
427 0 215 96 52 0
475
137 84 43
223 100 51
1 0 6 2
0
0
5 2
4 2
17 0 86 15 12 0 114 0 63 48
33
31
86 16 8
87 16 11
122
119
58 39
68 50
114 0 69 49
-18%
506
4% 0% -8% 0% 7% 0%
-15%
217 98 50
-3% -2% -3% 0%
1% 3% -5% 0%
123
120 73 52
-3% 0% 16% 30%
5%
63 40
19%
6% 6%
(1) Considers Chile and Foreign Subsidiaries (2) The CTM P Tons produced by M elhoramento 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