STANDARD CODED STATISTICAL RECORD CAP S.A. Consolidated Thousands of US dollars Date 31-03-1998 Date of document Nº Notes 30-4-98 28 Nº Regist. 0131 Accountant CIIU 810 371 230 331 PATRICIO VALDIVIA MUÑOZ Docket Nº 1.297 Signing Manager JAIME ARBILDUA ARAMBURU Firm name Fantasy trade name RUT/(taxID) CAP S.A. " CAP " 91.297.000-0 Address City Region telephone Fax POBox Telex HUERFANOS 669, floor 8 SANTIAGO 0 5202000 6337082 167-D 240288 CAP CL Deed : City Notary s Offi. Date SANTIAGO PEDRO CUEVAS 27-04-1946 Legalization : Publication Date CommerceReg. Pages Nº Date 20-05-1946 SANTIAGO 1356-1358 983-984 18-05-1946 Resolution : Gov. Agency Nº Date TREASURY DEPARTMENT DTO. 2004 03-05-1946 RUT Administration : Legal Representative ARBILDUA ARAMBURU, JAIME 4.299.006-K General Manager ARBILDUA ARAMBURU, JAIME 4.299.006-K Chairman of the Board DE ANDRACA BARBAS, ROBERTO 3.011.487-6 Directors VICEPRESIDENT : RASSMUSS ECHECOPAR, JUAN 4.660.524-1 DIRECTORS : ALVEAR ARTAZA, FERNANDO 4.779.384-K CHUECAS MUÑOZ, DAGOBERTO 3.522.681-8 MENDEZ GONZALEZ, JUAN CARLOS 4.402.519-1 REITICH SILBERMAN, HECTOR 48.011.445-0 VON APPEN BEHRMANN, SVEN 2.677.838-7 Shareholder s Name Type Pers. RUT % Prop. INVERCAP S.A. C 96.708.470-0 27.76 A.F.P. CUPRUM S.A. PARA FONDO DE PENSIONES D 98.001.000-7 5.50 M.C. INVERSIONES LTDA. D 79.866.800-5 4.88 CIA. EXPLOTADORA DE MINAS S.C.M. D 89.274.000-3 4.75 A.F.P. HABITAT S.A. PARA FONDO DE PENSIONES D 98.000.100-8 3.98 INVERSIONES RAND LTDA. D 96.671.940-0 3.52 A.F.P. PROVIDA S.A. PARA FONDO DE PENSIONES D 98.000.400-7 3.45 FUNDACION CAP D 71.493.900-9 2.11 A.F.P. SANTA MARIA PARA FONDO DE PENSIONES D 98.000.000-1 2.08 INVERSIONES AEGIS CHILE S.A. D 96.530.430-4 1.87 A.F.P. PROTECCION S.A. PARA FONDO DE PENSIONES D 98.001.300-6 1.36 INVERSIONES MONTERREY LTDA. D 92.513.000-1 1.32 TOTAL 62.58 Total Shares Capital Total voting shares Sharholders Underwritten Paid Subscribed Paid 7,736 149,448,112 149,448,112 379,444 379,444 149.448.112
Class: X Common Series SINGLE Number 149.448.112 Preferred Description of Preferences Series Number Risk Classification : Shares Common Preferred Date Classif. 1 1 st CLASS ---- 09-97 Classif. 2 1 st CLASS ---- 09-97 Rating RUT Agencies FELLER RATE CLASIFICADORA DE RIESGO LTDA. 79.844.680-0 DUFF AND PHELPS CHILE CLASIFICADORA DE RIESGO LTDA. 79.851.070-3 Observations Other information : Nº Employees Date Meeting Year End Subsidiaries Associated companies 4.858 30-04 31-12 10 3 External Auditors DELOITTE AND TOUCHE 80.276.200-3 RUT A) Permanent investment statement RUT COMPANIES Nº OF % COMPANIES ACCOUNTING PERFORMANCE LISTED SECURITY SHARES OWNERSHIP VALUE EQUITY INVESTMENT (V.P.P.) OF FISCAL YEAR UNIT PARTN ERSHIP 1 78.781.830-7 COMPAÑIA MINERA LA 10,500 50,00 20,990 4,607 --- --- --- JAULA 2 78.126.110-6 CIA. MINERA CARMEN 1,647 27,00 7,653 2,067 (5,288) --- --- DE ANDACOLLO 3 96.778.700-0 COMPAÑIA MINERA 934,950 50,00 18,699 9,350 --- --- --- HUASCO S.A. 4 ================ 5 TOTAL US$ 16,024 6
BALANCE SHEET 03-31-98 03-31-97 Cash 9,748 13,623 Time deposits 3,107 3,207 Marketable securities (net) --- 62,271 Trade debtors (net) 47,530 40,568 Trade notes receivable (net) 1,868 1,426 Sundry debtors (net) 14,288 32,785 Due from related companies 3,425 3,983 Inventories (net) 161,940 185,685 Refundable taxes 4,128 3,003 Prepaid expenses 4,513 3,085 Deferral of taxes --- --- Other current assets 6,674 3,747 Total current assets 257,221 353,383 Land 3,211 2,836 Buildings and infrastructure 431,068 430,834 Machinery and equipment 1,336,978 1,334,020 Other fixed assets 42,855 25,684 Technical revaluation of fixed assets 84,144 84,611 Accumulated depreciation (minus) (1,105,392) (1,050,610) Net fixed assets 792,864 827,375 Investments in related companies 16,879 10,692 Investments in other companies 77 81 Def. of carrying value over cost of --- --- investment Excess of carrying value over cost of (1,570) (1,744) investment (minus) Long-term debtors 14,846 14,646 Due from related companies 12,776 11,869 Intangibles --- --- Redemption (minus) --- --- Others 44,231 39,843 Total other assets 87,239 75,387 TOTAL ASSETS 1,137,324 1,256,145
03-31-98 03-31-97 Banks and Financial institutions - Short term 39,858 8,537 Banks and financial institutions- Short term Portion 64,705 98,830 Negotiable instruments --- --- Bonds --- 5,372 Long term liabilities due within a year 4,672 2,304 Dividends payable 201 206 Accounts payable 30,282 30,346 Notes payable 36,337 16,131 Sundry creditors 1,398 1,455 Dues from related companies 99 168 Provisions 38,654 36,057 Withholdings 8,482 5,504 Income tax 2,196 128 Unearned income 431 226 Deferral of taxes --- --- Other current liabilities 1 126 Total current liabilities 227,316 205,390 Banks and Financial institutions 371,949 429,622 Bonds --- 67,834 Notes payable --- --- Sundry creditors 13,695 18,743 Dues from related companies --- --- Provisions 40,688 44,275 Other long-term liabilities 2,373 3,108 Total long-term liabilities 428,705 563,582 Minority interest 99 102 Paid-in capital 379,444 379,444 Reserves for capital revaluation --- --- Price premium for sales of own shares --- --- Reserve for excess value of technical revaluation --- --- of fixed assets Other reserves 3,368 3,791 Deficit accumulated development period (minus) --- --- Retained earnings 117,779 89,788 Reserve future dividends --- --- Accumulated earnings 119,260 90,878 Accumulated losses (minus) --- --- Earnings (loss) of business year 11,009 8,665 Interim dividends (minus) (12,490) (9,755) Total shareholders equity 500,591 473,023 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 1,156,711 1,242,097
INCOME STATEMENT 01-01-98 01-01-97 03-31-98 03-31-97 Sales 158,936 177,594 Costs of Sales (130,831) (150,973) Operating Margin 28,105 26,621 Selling and Administrative Expenses (5,492) (6,458) OPERATING INCOME 22,613 20,163 Financial income 887 1,628 Earnings from investments in related companies --- 705 Other income 5,025 3,481 Losses from investments in related companies (1,427) --- Financial expenses (10,651) (12,841) Other expenditures (2,841) (3,691) Adjustment for currency devaluation --- --- OTHER INCOME (EXPENSES) (9,007) (10,718) Income before income tax 13,606 9,445 Income tax (2,641) (826) Consolidated income (Losses) 10,965 8,619 Minority interest --- 2 NET INCOME (LOSSES) 10,965 8,621 Redemption of excess value of investments 44 44 INCOME (LOSSES) FOR BUSINESS YEAR 11,009 8,665
CASH FLOW STATEMENT from 01/01/1998 01/01/1997 to 03/31/1998 03/31/1997 TOTAL NET FLOW OF THE PERIOD Cash flow from operating activities 65.110 Cash received from customers 160,921 177,470 65.115 Financial income received 77 2,554 65.120 Dividends and other allotments received 65.125 Other income received 900 5,276 65.130 Cash paid to suppliers and employees (minus) (162,773) (133,277) 65.135 Interest paid (minus) (6,315) (8,362) 65.140 Income tax paid (minus) (175) (145) 65.145 Other expenses paid (minus) (998) (333) 65.150 VAT and other similar taxes paid (minus) (6,718) (7,750) 65.100 NET CASH FLOW FROM OPERATING ACTIVITIES (15,081) 35,433 Cash flow from financing activities 65.210 Sale of cash shares 65.215 Proceeds from loans 56,428 --- 65.220 Bonds 65.225 Documented loans to related companies 65.230 Proceeds from other loans to related companies 65.235 Other financing sources --- 65.240 Dividends paid (minus) (3,402) (3,511) 65.245 Capital allocation (minus) 65.250 Payment of loans (minus) (39,011) (38,193) 65.255 Payment of bonds (minus) 65.260 Payment of documented loans from related companies (minus) 65.265 Payment of other loans from related companies (minus) 65.270 Payment of expenses from shares issuance and sale (minus) 65.275 Payment of expenses from bonds issuance and sale (minus) 65.280 Other disbursements for financing activities (minus) (90) 65.200 NET CASH FLOW FROM FINANCING ACTIVITIES 13,925 (41,704)
from 01/01/1998 01/01/1997 to 03/31/1998 03/31/1997 Cash Flow from Investing Activities 65.310 Proceeds from sales of fixed assets 630 1,067 65.315 Proceeds from sales of permanent investments 65.320 Proceeds from sales of other investments 65.325 Collection of documented loans to related companies 65.330 Collection of other loans to related companies 65.335 Other income from investments 13,038 65.340 Purchase of fixed assets (minus) (4,578) (2,973) 65.345 Payment of capitalized interests (minus) 65.350 Purchase of permanent investments (minus) (627) (1,067) 65.355 Purchase of investments in financial instruments (minus) 65.360 Documented loans to related companies (minus) 65.365 Other loans to related companies (minus) (75) 65.370 Other investing disbursements (minus) (186) (6) 65.300 NET CASH FLOW FROM INVESTING ACTIVITIES (4,761) 9,984 65.000 TOTAL NET CASH FLOW FOR THE YEAR (5,917) 3,713 65.500 IMPACT OF INFLATION ON CASH AND CASH EQUIVALENTS 66.000 NET CHANGES IN CASH AND CASH EQUIVALENTS (5,917) 3,713 66.500 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 11,925 78,228 67.000 CASH AND CASH EQUIVALENTS AT END OF YEAR 6,008 81,941
RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES from 01/01/1998 01/01/1997 to 03/31/1998 03/31/1997 68.100 Net income (losses) for business year 11,009 8,665 Results from sale of assets: 68.105 (Profits) Losses from sales of fixed assets (3,722) (14) 68.110 (Profits) on sales of investments 68.115 Losses on sales of investments 68.120 (Profits) Losses on sales of other assets Charges (credits) to income not representing cash flows: 68.125 Depreciation 15,215 19,205 68.130 Amortization of intangibles 68.135 Write-offs and provisions 104 869 68.140 Equity in earnings of related companies (minus) (705) 68.145 Equity in losses of related companies 1,428 68.150 Amortization by deficit of carrying value over cost of investments 68.155 Amortization by excess of carrying value over cost of (44) (44) investments (minus) 68.160 Net adjustment for currency devaluation 68.165 Other credits to income not representing cash flows (minus) (3,473) (1,751) 68.170 Other charges to income not representing cash flows 2,461 20,424 Changes in assets. affecting cash flows: 68.175 (Increase) decrease in trade accounts receivable (35,386) (29,264) 68.180 (Increase decrease in inventories 1,797 19,827 68.185 (Increase) decrease in other assets 2,265 (5,269) Changes in liabilities. affecting cash flows: 68.190 Increase (decrease) in accounts payable related to operating income (16,958) 6,053 68.195 Increase (decrease) in interest payable 2,266 1,930 68.200 Net increase (decrease) in income taxes payable 657 651 68.205 Increase (decrease) of other accounts payable payable related to non-operating income (247) (7,097) 68.210 Net increase (decrease) in Value Added Tax and other similar taxes payable 7,547 1,955
68.215 Increase (losses) in minority interest 0 (2) 68.000 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (15,081) 35,433