EMPRESAS CMPC FOURTH QUARTER 2013 RESULTS

Transcription

1 EMPRESAS CMPC FOURTH QUARTER 2013 RESULTS On December 5 th, CMPC announced the reorganization of the Company s paper and packaging business.es CMPC Papers is now the business area that combines the former Paper and Paper Products divisions.

2 FOURTH QUARTER 2013 RESULTS Topics 4Q13 Highlights 3 Sales and EBITDA Analysis 4-5 Sales Analysis: 6-10 Forestry 5 Pulp 7-8 Paper 9 Tissue 10 Income Statement Analysis Balance Sheet Analysis Debt Analysis 13 Capital Expenditures 14 Relevant Events Capital Markets 17 Financial Information Management Comment 2013 was a year of solid achievement for CMPC, as we delivered solid results across our businesses, maintaining margins while investing in future growth. We delivered respectable financial results, with solid growth in both revenue and EBITDA, including a 3% growth in tissue EBITDA despite the impact of depreciating local currencies in the second half of the year. We also broke ground at our Guaíba pulp project in Brazil, while executing on our conservative financing plan to keep our leverage under control during this investment phase. CMPC also received multiple industry recognitions for the year, including Forest Stewardship Council certification for CMPC Maderas; the recognition of our Confort tissue brand as the second-most-valued brand in Chile; and Fundación CMPC receiving the Más por Chile seal from the Ministry of Social Development. In 2014, we will prioritize efficiency and discipline across our business. The opening of our new tissue distribution plant will be a boost to the Brazilian tissue business. The facilities inaugurated in 2013 at Talagante and Mininco will continue to move along their respective learning curves, while our restructured Paper business enters the year with a leaner cost base. To sum up, we are positioned to deliver further profitable growth, while also maintaining strict control over our leverage levels, to create value for all our stakeholders. About CMPC Empresas CMPC produces forestry, pulp, paper, tissue and packaging products throughout Latin America. The company aims to deliver worldclass 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, Brazil, Argentina, Mexico, Peru, Colombia, Uruguay and Ecuador, 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. Conference Call Date: March 6 th, 3:00 PM ET US Toll Free: International Dial: Webcast: ks/empresas html Investor Relations Contact: Colomba Henríquez B. chenriquezb@gerencia.cmpc.cl Press: Sebastián Garcés O. sgarceso@gerencia.cmpc.cl

3 4Q13 HIGHLIGHTS Total sales were US$1,259 million, 2% and 4% higher than 3Q13 and 4Q12 respectively. Pulp sales of 576,000 tons, up 7% QoQ and 6% YoY. EBITDA of US$254 million, down 2% when compared to 3Q13 and up 21% compared to 4Q12. EBITDA margin of 20%, compared with 21% in 3Q13 and 17% in 4Q12. Net Debt/EBITDA ratio of 2.8x, down from 3.0x in 3Q13 and 3.3x in 4Q12. New tissue distribution center in Caieiras, Brazil begins operations in October CMPC s Board of Directors approved a new 50,000 tons/ year capacity tissue machine for the Altamira Mill in Mexico. Secured total of US$340 million of credit facilities from Swedish and Finnish export credit agencies to finance expansion of Guaíba pulp project. Main Figures US$ Million 4Q12 3Q13 4Q13 QoQ YoY YTD 2012 YTD 2013 YTD ' 13 / YTD ' 12 Sales 1,213 1,231 1,259 2% 4% 4,759 4,974 5% EBITDA % 21% % EBITDA Margin 17% 21% 20% -4% 17% 19% 19% 0% Net Income % -7% % CAPEX % -45% % Total Assets 13,879 14,152 14,188 0% 2% 13,879 14,188 2% Net Debt 3,009 2,793 2,707-3% -10% 3,009 2,707-10% Market Capitalization 9,236 7,223 5,822-19% -37% 9,236 5,822-37% Closing Exchange Rate (CLP/US$) % 9% % Average Exchange Rate (CLP/US$) % 8% % 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 ( 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 ( 3

4 SALES AND EBITDA ANALYSIS Third Party Sales by business area 4Q12 3Q13 4Q13 10% 11% 11% 37% 30% 38% 30% 37% 32% 23% 21% 20% Forestry Pulp Paper Tissue Third Party Sales by destination 4Q12 3Q13 4Q13 30% 26% 32% 24% 31% 23% 44% 44% 46% Domestic Sales Foreign Subsidiaries Domestic Sales Chile Export Sales EBITDA by business area 4Q12 3Q13 4Q13 17% 15% 22% 15% 19% 12% 24% 14% 17% 44% 49% 52% Forestry Pulp Paper Tissue 4

5 SALES AND EBITDA ANALYSIS Total Revenues were US$1,259 million during the quarter, 2% higher compared to 3Q13 and 4% higher compared to 4Q12. The QoQ increase was mainly due to the Pulp division which benefited from higher prices for softwood and higher sales volumes for hardwood. The Forestry division also registered higher sales volumes and slightly higher prices, while the Paper division was benefited by a 5% increase in average prices. The YoY increase was driven by an increase in sales in all business areas with the exception of the Paper division, which was affected by the closure of the newsprint operations and a late start of the fruit season in Chile. Operating costs, excluding depreciation, stumpage and decrease due to harvest, totaled US$826 million, up 4% from 3Q13 and 1% from 4Q12. The QoQ increase is partly the result of higher sales in most business areas and higher seasonal costs in the Forestry division. At a consolidated level, operating costs in 4Q13 were 66% of total revenues, compared with 65% in 3Q13 and 67% in 4Q12. EBITDA totaled US$254 million, down 2% from 3Q13 and up 21% from 4Q12. The QoQ decrease is the result of seasonally higher costs in the Forestry divisions, as well as seasonally lower tissue sales. The YoY increase is mainly due to the Pulp and Tissue divisions where EBITDA rose 43% and 35% respectively. Revenues Analysis to Third Parties EBITDA Variation by Business Prices Volumes ,231 1, Sales 3Q13 Forestry + 6 Pulp +22 Papers + 4 Tissue -3 Sales 4Q13 EBITDA 3Q13 Forestry Pulp Papers Tissue Holding & Others EBITDA 4Q13 5

6 FORESTRY Sales * Q12 3Q13 4Q13 EBITDA * In 4Q13, Forestry revenues rose 4% from 3Q13 and 17% from 4Q12. QoQ sales volumes increased 3%, driven by the higher sales of sawn wood (+15%), pulpwood (+12%) and plywood (+5%). Higher sawn wood sales are the result of seasonally higher sales in Chile and higher exports to the Middle East. Pulpwood volumes benefited from higher wood chips sales in Chile, while plywood sales rose on higher exports to Latin America. Sales volumes of remanufactured wood and sawing logs fell 8% and 7% respectively. The lower volumes of remanufactured wood were due to a downward adjustment in demand in United States which had seen growing demand following hurricane Sandy. The decrease in sawing logs volumes is mainly the result of greater internal use of logs. 4Q13 s volumes were 20% higher when compared to 4Q12 due to the higher volumes sold of pulpwood (+49%), sawing logs (+26%), sawn wood (+15%) and remanufactured wood (+11%). 4Q12 3Q13 4Q13 * Figures in US$ million Volumes (Th. m 3 ) 4Q12 3Q13 4Q13 Pulpwood Sawing Logs Sawn wood Remanufactured wood Plywood Others Total 862 1,001 1,035 Average sale prices increased 2% compared to 3Q13, driven by higher pulp wood prices due to higher sales of wood chips and decreased in 1% when compared to 4Q12. EBITDA for the quarter fell 22% from 3Q13, and was stable compared to 4Q12. The lower QoQ EBITDA can be attributed to higher seasonal expenses, including fire control, weed control and road pavements, and one-off costs associated with the startup of the new plywood line. 6

7 U S$/ton CIF PULP Global demand for Market Pulp rose 2.6% in 4Q13 from 3Q13. For 2013, demand grew 3.2%, or 1.7 million tons. Of this additional 1.7 million tons, 1.3 million tons was sold in China. Softwood demand increased 2.2%, or 560,000 tons, in 2013 compared with Geographically, North America and Europe accounted for 370,000 tons of this increase. The growth in demand was broadly in line with the increase in installed capacity. The reasonable demand/supply balance allowed softwood prices to maintain a stable/upward trend, accumulating a 10% annual increase according to FOEX prices. Hardwood demand increased 5.4%, or 1.5 million tons, during The highest growth in demand for hardwood pulp was China, with an annual increase of 19%, or 1.3 million tons. Even though global supply grew 615,000 tons during the year, which is lower than demand growth, prices had a downward trend during the last part of The latter effect is mainly explained by the higher level of producer s inventories at the end of 2012 (35 days), a more aggressive commercial policy from the producers, and the expectations of the entrance of new capacity in South America. However, new production lines were delayed and signs of a recovery of the European demand are perceived. Also, we have seen un upward trend in the usage of hardwood in the mix of paper fibers. All this contributes to a more positive outlook for pulp in the first part of Source: PPPC CMPC's average net pulp export price evolution Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 BSKP BEKP 7

8 PULP Sales * Q12 3Q13 4Q13 During 4Q13, Pulp sales rose 6% from 3Q13 and 9% from 4Q12. Market pulp sales volumes rose 7% from 3Q13 and 6% from 4Q12. Sales volumes of softwood were flat QoQ and rose 4% YoY, while hardwood sales rose 10% QoQ and 7% YoY. The quarterly increase in hardwood volumes is the result of greater demand in Europe, the United States and Latin America. The increase in exports to Europe and United Stated is partly explained by additional shipments to test new markets for pulp from Guaíba 2. The increase YoY is mainly due to better operational rates with higher exports to most markets. 94 EBITDA * Effective average sales prices (including a small tonnage of P&W papers and energy sold to the SIC grid) increased 1% QoQ and 6% YoY. The average effective net export price was CIF 713 US$/ton for softwood and CIF 633 US$/ton for hardwood. During 4Q13, the spread between the two fibers was CIF 80 US$/ton, compared with CIF 25 US$/ton in 3Q13. 4Q12 3Q13 4Q13 * Figures in US$ million EBITDA in 4Q13 rose 3% from 3Q13 and 43% from 4Q12. Direct costs fell due to lower costs for pulpwood and chemicals, partly offset by higher energy costs in the Santa Fe mill. Volumes (t h. Tons) 4Q12 3Q13 4Q13 BSKP BEKP Other Total Market Pulp

9 PAPERS Sales * Q12 3Q13 4Q13 EBITDA * In 4Q13, Paper sales rose 2% from 3Q13 and fell 9% from 4Q12. QoQ sales volumes were flat. Sales of boxboard rose on higher exports, while corrugated box sales were higher on increase demand due to the start of the fruit season in Chile. This was offset by lower paper bag volumes, as a result of a decrease in exports from the Argentina operations, and lower sales of molded pulp trays as demand from the apple industry fall. 4Q13 volumes fell 9% from 4Q12, as a result of the closure of our newsprint operations and a late start of the fruit season in Chile. The decline was partly offset by a 14% increase in paper bag volumes and a 12% increase of molded pulp trays as capacity rose in Mexico and Chile, respectively. Sale prices rose 5% from 3Q12 and 4% from 4Q12, mainly explained by higher paper bag prices. 4Q12 3Q13 4Q13 EBITDA in 4Q13 rose 24% from 3Q13, and fell 10% from 4Q12. * Figures in US$ million Volumes (th. Tons) 4Q12 3Q13 4Q13 Boxboard Newsprint Paper Bags Other Papers CMPC Packaging Corrugated Paper Corrugated Boxes Molded Pulp Trays Total

10 TISSUE Sales * Q12 3Q13 4Q13 EBITDA * In 4Q13, Tissue sales fell 1% from 3Q13 and rose 4% from 4Q12. Tissue Paper sales volumes fell 1% from 3Q13, and rose 2% from 4Q12. The QoQ decline was in line with usual seasonal sales of tissue in the Southern Hemisphere. The YoY increase can be attributed to market growth in most countries in which we operate. Sanitary Products sales volumes increased by 1% QoQ and 12% YoY, driven by growing demand across markets and higher market share for CMPC s diapers and feminine care products. Average sales prices (measured in US$) remained stable for tissue paper when compared to 3Q13, while sanitary products average price decreased 3%. It is important to mention that the appreciation of the US Dollar negatively affected tissue paper and sanitary products prices during the quarter. 4Q12 3Q13 4Q13 * Figures in US$ million Tissue Paper Sales Volumes by Country EBITDA in 4Q13 fell 17%, QoQ and rose 35% YoY. The QoQ decrease was mainly affected by the lower volumes and the negative effect of the depreciation of local currencies. These was partly offset by the decrease in direct costs during the quarter, mainly due to lower recycled paper costs and lower electricity prices in Chile and Peru, which more than offset higher pulp prices. CMPC also shifted production to use more recycled paper. 14% 12% 4% 3% 2% 144 th. Tons 19% 24% 22% Chile Brazil Argentina Mexico Peru Uruguay Colombia Ecuador 10

11 INCOME STATEMENT ANALYSIS Operating costs excluding depreciation, stumpage and decrease due to harvest totaled US$826 million, up 4% from 3Q13 and 1% from 4Q12. The QoQ increase was partly explained by higher sales and by higher seasonal costs in the Forestry division. At a consolidated level, operating costs in 4Q13 were 66% of total revenues, compared with 65% in 3Q13 and 67% in 4Q12. Other operating expenses totaled to US$179 million, up 1% from 3Q13 and down 4% from 4Q12. The QoQ change was driven by higher sales and higher seasonal costs in the Tissue division partly offset by lower distribution costs in all business divisions. YoY the decrease is explained by lower distribution costs in all business divisions. At a consolidated level, other operating expenses in 4Q13 were 14% of total revenues, compared with 14% in 3Q13 and 15% in 4Q12. Financial expenses increased 5% from 3Q13. In addition, CMPC s Financial Income increased 29% when compared with 3Q13. During this quarter there was a lower Share of profit in associated companies, which decreased to US$2 million. Currency Exchange rate differences were US$21 million, a result of the appreciation of the US Dollar. Indexation Unit Results registered a US$9 million loss in the quarter, due to the appreciation of the UF, Chile s inflation-linked currency. Other gains (losses) resulted in a loss of US$150,000. This category 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 represented an expense of US$78 million in 4Q13, compared with a gain of approximately US$4 million in 3Q13 and a US$27 million expense in 4Q12. 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. 11

12 BALANCE SHEET ANALYSIS Cash and cash equivalents totaled US$927 million as of December 31 st, 2013, up 11% from the end of 3Q13 and up 115% from the end of 4Q12. The QoQ change is mainly due to the sale of the Company s 7.74% stake in Bicecorp S.A. in December 2013 for approximately US$106 million. As of December 31 st 2013, Current assets were up 1% from September 30 th Non-current assets remained stable from September 30 th. This is the result of an increase in fixed assets at the Guaíba pulp facility, offset by the sale of the stake in Bicecorp S.A. Current liabilities were up by 5% from September 30 th mainly explained by higher accounts payable as well as higher tax liabilities due to the Bicecorp S.A. sale. Non-current liabilities were up 1% from September 30 th CMPC s financial debt stood at US$3,730 million as of December 31 st 2013, 1% lower from September 30 th Net financial debt was US$2,707 million as of December 31 st 2013, 3% lower from September 30 th, due to higher levels of cash. Financial Ratio Evolution 5.45x 5.53x 5.67x 3.3x 3.0x 2.8x The Net Debt/EBITDA ratio was 2.8x, down from 3.0x in 3Q13 and 3.3x in 4Q x 0.46x 0.46x 4Q12 3Q13 Net Financial Debt / EBITDA Debt breakdown as of December 31 st, 2013 Financial Debt / Tangible Net Worth Interest Coverage Ratio In Million US$ 4Q12 3Q13 4Q13 Δ% QoQ Δ% YoY (i) Current Interest-bearing Liabilities % -59% (ii) Non Current Interest-bearing Liabilities 3,229 3,552 3,575 1% 11% (iii) Other Obligations (48) (47) (46) -1% -5% (iv) Mark to Market of Derivatives Debt Instruments for Hedging Currencies and Interest Rates (98) (11) (75) 612% -24% (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) ) 3,750 3,786 3,730-1% -1% Cash* ,023 3% 38% Net Debt 3,009 2,793 2,707-3% -10% Average Cost of Debt 4.1% 4.1% 4.2% 2% 2% *Cash and cash equivalents + Term deposits within 90 to 360 days of maturity 12

13 DEBT ANALYSIS Amortization Schedule as of December 31 st, 2013 EBITDA LTM: US$964 million / /30 Debt by Issuer Debt by Currency 10% 3% 11% 9% 87% 80% Inversiones CMPC Tissue Other US$ CLP Other Debt by Interest Rate 9% Debt by Type 23% 91% 77% Fixed Rate Floating Rate Banks Bonds 13

14 CAPITAL EXPENDITURES Distribution Center - Caieiras, Brazil Capital expenditures in the quarter totaled US$265 million, up 16% from 3Q13 and down 45% from 4Q12. The YoY decline was mainly due to a high base of comparison due to the acquisition of the Losango forestry assets in December 2012 for approximately US$ 300 million. Total cash disbursed related to the Guaíba expansion project in 4Q13 totaled approximately US$230 million. 479 CAPEX CMPC s Board of Directors approved a new tissue machine for the Altamira Mill in Mexico. The machine will have a capacity of 50,000 tons capacity and will start operations in 3Q15. 4Q12 3Q13 4Q13 The Guaíba project continues on schedule and on budget with approximately US$500 million disbursed during As of December 31 st, 2013, more than 3,300 people were working in the construction site, of whom more than 66% were from the local community. Main current projects Forestry Pulp Paper Tissue Tissue Tissue Description Second line - Mininco Plant Second line - Guaíba Mill Cogeneration plant - Puente Alto Mill Cogeneration plant - Talagante Mill Tissue machine - Altamira Mill (Mexico) Cogeneration plant - Altamira Mill (Mexico) Capacity 260 th. m 3 /year 1.3 million tons/year 44MW + 80 tons steam /hour 20MW + 25 tons steam /hour 50 th. tons/year 21MW + 30 tons steam /hour Budget US$120 million US$2.1 billion US$70 million US$32 million US$127 million US$34 million Start up 4Q13 2Q15 2Q15 2Q15 3Q15 3Q15 Spending Completion % 100% 24% 1% 0% 5% 0% 14

15 RELEVANT EVENTS New Distribution Center for Melhoramentos Papeis: In October 2013 the new tissue distribution center in the city of Caieiras, Brazil began operations. The center represents a total investment of US$25 million and includes 40,000m 2 of warehouse space. The center will allow CMPC to improve its distribution to cities including São Paulo, Rio de Janeiro and Belo Horizonte. New Tissue Machine for the Altamira Mill: CMPC s Board of Directors approved a new tissue machine for the Altamira Mill in Mexico. The machine will have a capacity of 50,000 tons and will start operations in 3Q15. The project, which includes a cogeneration plant and conversion capacity, will imply a total investment of US$160 million. ECA Financing for the Guaíba 2 Project: On December 20th, CMPC closed two credit facilities for the Guaíba 2 Project with EKN, and Finnvera Export Credit Agencies (ECA) from Sweden and Finland respectively. EKN credit facility totals approximately US$120 million (subject to a 5% Premium payment) whereas Finnvera s totals US$220 million (with a 5.3% Premium payment). Both facilities use fixed interest rate based on a CIRR rate of 2.31% and are structured as a 10-year term amortization of principal and interest payment on a semiannual basis with a 2 year grace period. Closure of Newsprint Operations: On November 12 th, the Papeles Rio Vergara newsprint mill located in Nacimiento, Chile ceased operations. The closure resulted in a net charge of US$40 million, which was recognized in 3Q13 s results. Bicecorp sale: On December 4 th, CMPC completed the sale of its 7.74% (6,583,741 shares) stake in Bicecorp S.A.. The auction was executed at a price of CLP$8,550 per share, for a total of CLP$56,290,985,550 (approximately US$106 million). The Bicecorp sale was part of the previously announced financing package for CMPC s expansion of the Guaíba pulp facility. Reorganization of the paper and packaging divisions: On December 5 th, CMPC announced the reorganization of the Company s paper and packaging business. As part of this plan, former CMPC Papers and CMPC Paper Products divisions have been combined. Also, the Paper Products subsidiaries that manufacture cardboard boxes, Envases Impresos S.A. and Envases Roble Alto S.A., merged into the new subsidiary Envases Impresos Roble Alto S.A. Provisory CLP$5 cash dividend: A dividend of CLP$5 per outstanding share was approved by CMPC s Board of Directors and paid on December 27 th,

16 RELEVANT EVENTS CMPC Investor Day CMPC will host its 1 st Investor Day on Thursday April 24th 2014 in Santiago, Chile. The event includes a site visit to the Talagante Tissue Mill and meetings attended by Hernán Rodríguez (CEO), Luis Llanos (CFO), Guillermo Mullins (Commercial Officer, Pulp Division) and other executive officers. To register for the event, please chenriquezb@gerencia.cmpc.cl. 16

17 CL P$ CAPITAL MARKETS Equity Average price during the quarter was CLP$1,492 compared to CLP$1,552 in 3Q13. Average daily volume traded was 1.2 million shares. Average daily financial volume was CLP$1,766 million. 1,600 1,550 1,500 1,450 1,400 1,350 1,300 1,250 1,200 Price Evolution Source: Bloomberg Fixed Income International Bonds Yield % (1) Currency 4Q12 3Q13 4Q13 QoQ YoY CMPC 2018 US$ % 2% CMPC 2019 US$ % 13% CMPC 2022 US$ % 28% CMPC 2023 US$ % - Source: Bloomberg Local bonds in Chile Yield % (1) Currency 4Q12 3Q13 4Q13 QoQ YoY BCMPC - A UF % -7% BCMPC - B UF % 1% BCMPC - D UF % -13% BCMPC - F UF % 0% Source: Bolsa de Comercio de Santiago (1) Average Mid Yield 17

18 BALANCE SHEET Q13 Figures in Th. US$* 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 QoQ YoY Current Assets 3,312,451 3,509,085 3,450,480 3,353,693 3,366,465 3,680,515 3,454,358 3,488,780 1% 4% Cash and Cash Equivalents 366, , , , ,767 1,012, , ,249 11% 115% Operative Receivables 969, , , , , , , ,235-3% -4% Inventories 1,042,859 1,060,528 1,087,790 1,098,369 1,111,044 1,053,658 1,086,941 1,057,951-3% -4% Biological Assets 223, , , , , , , ,568 7% 3% Tax Assets 148, , , , , , , ,630 15% -21% Other Current Assets 561, , , , , , , ,147-13% -55% Non Current Assets 10,223,760 10,112,075 10,162,980 10,525,689 10,706,656 10,561,010 10,697,200 10,699,074 0% 2% Intangible Assets, Different from Goodwill 10,071 9,586 9,491 10,546 14,952 14,624 14,383 14,904 4% 41% Goodwill 156, , , , , , , ,291-3% -7% Property, Plant and Equipment, Net 6,464,886 6,433,556 6,478,299 6,569,815 6,554,675 6,579,774 6,650,920 6,810,573 2% 4% Biological Assets 3,267,626 3,288,415 3,298,355 3,280,990 3,310,103 3,316,569 3,311,019 3,306,717 0% 1% Deferred Tax Assets 133,783 45,535 54,867 54, ,352 51,545 56,404 46,072-18% -15% Other Non Current Assets 190, , , , , , , ,517-26% -17% TOTAL ASSETS 13,536,211 13,621,160 13,613,460 13,879,382 14,073,121 14,241,525 14,151,558 14,187,854 0% 2% Current Liabilities 1,096,994 1,160,065 1,381,121 1,569,235 1,689,550 1,205,069 1,084,798 1,138,200 5% -27% Other Financial Liabilities 241, , , , , , , ,138-1% -46% Operative Liabilities 653, , , , , , , ,865 8% -9% Other Current Liabilities 201, , , , ,629 79, , ,197 10% -28% Non Current Liabilities 4,418,533 4,500,180 4,251,054 4,325,113 4,332,489 4,697,416 4,676,341 4,729,885 1% 9% Other Financial Liabilities 3,218,130 3,387,947 3,143,351 3,230,886 3,097,142 3,548,429 3,568,630 3,582,714 0% 11% Deferred Tax Liabilities 931, , , ,449 1,095,247 1,022, ,097 1,024,778 3% 7% Other Non Current Liabilities 268, , , , , , , ,393 11% -12% Non Controlling Participations 9,508 4,713 4,723 4,722 4,801 4,357 4,383 4,245-3% -10% Equity Attributable to the Owners of the Controller 8,011,176 7,956,202 7,976,562 7,980,312 8,046,281 8,334,683 8,386,036 8,315,524-1% 4% TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 13,536,211 13,621,160 13,613,460 13,879,382 14,073,121 14,241,525 14,151,558 14,187,854 0% 2% * Balance Sheet numbers are based on CMPC's quarterly financial data, which is presented to the "Superintendencia de Valores y Seguros" (SVS). 18

19 INCOME STATEMENT Q13 Figures in Th. US$ 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 QoQ YoY Sales 1,176,975 1,160,717 1,208,625 1,213,003 1,193,670 1,290,776 1,230,528 1,259,485 2% 4% Operating Costs (1) (799,287) (752,084) (795,226) (816,831) (819,774) (870,932) (794,907) (826,165) 4% 1% Operating Margin 377, , , , , , , ,320-1% 9% Other Operating Expenses (2) (153,331) (168,958) (172,829) (186,690) (161,715) (180,781) (177,196) (179,129) 1% -4% EBITDA ( 3) 224, , , , , , , ,191-2% 21% EBITDA Margin (%) 19% 21% 20% 17% 18% 19% 21% 20% 1% -2% Depreciation, Amortizations and Stumpage (106,085) (102,156) (100,691) (115,842) (105,380) (106,200) (105,773) (107,770) 2% -7% Increase in Biological Assets due to Forests Growth and Price Effects 58,222 58,221 61,915 60,026 51,903 51,904 51,114 53,019 4% -12% Decrease in Biological Assets due to Harvest (44,104) (52,743) (53,596) (51,155) (46,134) (51,812) (56,155) (57,909) 3% 13% Operating Income 132, , , , , , , ,531-4% 38% Financial Expenses (41,310) (45,809) (45,439) (42,673) (41,638) (43,918) (43,217) (45,525) 5% 7% Financial Income 8,926 8,892 10,742 8,715 6,202 5,868 4,069 5,232 29% -40% Share Results in Associated Companies 3,435 2,160 3,093 4,122 2,631 1,032 3,131 2,085-33% -49% Foreign Exchange Difference (14,971) (1,345) (31,654) 10,484 (13,419) 39,574 (10,339) 21, % 102% Indexation Unit Results (8,214) (2,937) (765) (6,213) (1,016) 701 (8,708) (8,926) 3% 44% Other Gains (Losses) (5,182) (12,594) 12,212 (9,537) 14,653 2,904 (53,202) (150) -100% -98% Income Taxes 49,280 (54,832) (95,140) (27,132) 4,332 (108,550) 3,947 (77,991) -2076% 187% Net Income 124,354 36,532 1,247 40,277 84,315 30,566 43,292 37,460-13% -7% (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

20 CASH FLOW STATEMENT Q13 Figures in Th. US 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 QoQ YoY Cash Flow from Operating Activities 179, , , , , , , ,071-3% 36% 0 Cash collection from operating activities Collections from sales of goods and services delivered 1,280,431 1,375,528 1,304,311 1,352,692 1,363,551 1,420,809 1,396,521 1,412,810 1% 4% Other cash collections from operating activities 84,793 66,581 81,937 70,343 69,422 59,293 57,723 55,993-3% -20% Payments for operating activities Payments to suppliers for goods and services (1,042,197) (1,027,199) (913,822) (1,256,713) (1,082,802) (1,044,892) (1,051,700) (1,138,430) 8% -9% Payments to and on behalf of employees (80,894) (169,038) (137,109) 56,448 (115,162) (158,368) (139,983) (24,246) -83% -143% Payments for premiums, benefits, annuities, and other obligations derived from suscribed policies (97) 0 0 (24,109) (1,062) (64) (415) (25,051) 5936% 4% Other payments from operating activities (40,559) (54,019) (46,360) (19,406) (49,901) (43,420) (41,795) (46,711) 12% 141% Net cash flows from (used in) operating activities 201, , , , , , , ,365 6% 31% Income taxes paid (reimbursed) (22,460) (32,673) (32,292) (16,339) (21,081) (15,059) 6,481 (13,294) -305% -19% Other cash inflows (outflows) Cash Flow from Investment Activities (158,539) (227,258) 30,234 (432,170) (136,076) (86,682) (201,951) (224,070) -41% -73% Cash flows from losing control of subsidiaries or other businesses , Cash flows used for acquiring subsidiaries 0 (792) (278) (55) -80% - Amounts obtained from the sale of property, plant and equipment 9, , % 5990% Purchases of property, plant and equipment (158,039) (136,396) (106,551) (167,476) (130,544) (210,270) (205,827) (252,822) 23% 51% Cash obtained from the sale of intangible assets 0 5, , Purchases of other long-term assets (15,646) (22,727) (24,249) (13,383) (13,948) (16,328) (23,157) (15,011) -35% 12% Payments of future contracts, forwards, options and swaps (6,700) 2,830 (22,320) (11,312) (5,923) (21,690) (20,299) (38,213) 88% 238% Collections of future contracts, forwards, options and swaps ,465 1,930 28,366 16,721 17,573 5% 172% Dividends received 0 3, , % - Interest received 8,698 8,804 10,414 6,422 6,217 5,053 3,918 5,521 41% -14% Other cash inflows (outflows) 3,587 (87,937) 172,700 (252,927) 4, ,710 26,178 56, % -122% 0 Cash Flow from Financing Activities (95,598) 270,940 (294,956) 119,614 (28,381) 461,751 (199,041) 2, % -98% Proceeds raised through short-term loans 0 521,457 (29,710) (491,747) 0 235, ,787 (107,183) -180% - Proceeds raised through long-term loans 105,411 47,704 61,438 (214,553) 156, , , % Proceeds raised through loans 105, ,161 31,728 (706,300) 156, , , ,549-15% -116% Proceeds from equity issuances , , Loans reimbursements (156,526) (210,295) (245,183) 612,004 (146,143) (478,233) (272,619) (64,958) -76% -111% Dividends paid (149) (53,902) (37,504) 91,555 (79) (27,665) (22,869) (22,086) -3% -124% Interest paid (44,334) (34,024) (43,997) 122,355 (39,116) (42,858) (38,340) (48,412) 26% -140% Other cash inflows (outflows) (43) Net increase (decrease) in cash and cash equivalents before effect of exchanges rate change (75,120) 202,862 (8,057) (149,640) 0 (1,492) 593,368 (174,160) (633) -160% -170% Effects of variation in the exchange rate on cash and cash equivalents 37,450 (27,246) 16,424 (9,949) 0 4,017 (15,116) (3,892) (11,831) 204% 19% Net increase (decrease) in cash and cash equivalents (37,670) 175,616 8,367 (159,589) 0 2, ,252 (178,052) (12,464) -152% -158% Cash and cash equivalents at beginning of period 404, , , , , ,767 1,012, ,967-18% 51% Cash and cash equivalents at end of period 366, , , , ,767 1,012, , ,503 11% 137% Term deposits within 90 to 360 days of maturity 416, , , , , , ,789 95,996-40% -69% Total Cash at the end of the period 782,839 1,057, , , ,242 1,197, , ,499 3% 46% 20