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Empresas CMPC S.A. Third Quarter 2010 Results th November 5 , 2010

3Q10

New tissue paper machine in Gachancipá, Colombia – launched 3Q10

3Q10 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

“Since the 90’s, CMPC began an internationalization process, which has been accelerating during the last years. 90 years after its foundation, CMPC operates in 8 countries, generating over 14,700 direct jobs, contributing with the development of the communities where the Company operates, satisfying the needs of more than 20,000 direct customers over 50 countries.

All the above confirms CMPC’s long term business vision, which is focused on generating value through its traditional seal of innovation and prudence in all its business activities.”

Conference Call th Date: Friday, November 12 , 10:00 AM Eastern Time 12:00 PM Santiago de Chile US Toll Free: (+1 888) 419 5570 International Dial: (+1 617) 896 9871 Password: 283 931 44


3Q10

3Q10 in Brief

During the quarter, CMPC registered an increase in its sales and EBITDA, when compared with those reached in the second quarter of the year. This was mainly explained by the normalization of the Company's operational activity, which was affected by the earthquake that hitted Chile in February 2010. In relation to the above, during the quarter a US$50 million advance payment was received from insurance companies corresponding to business interruption claims due to the earthquake. Regarding the better results achieved by the Company during the quarter, it is important to highlight the recovery in pulp activity after the earthquake. Only since September, the Pulp division reached an equilibrium between production and sales. Nevertheless, this positive effect was slightly reversed by lower pulp prices, which diminished by 3% and 1% for softwood and hardwood respectively.

CMPC’s consolidated sales for 3Q10 reached US$1,125 million, registering a 12% increase when compared to those of 2Q10. During the quarter, there were higher sale prices in all divisions, except from Pulp. On the other hand, sale volumes increased in all business areas, except from Forestry and Paper Products.

Consolidated EBITDA reached US$322 million during 3Q10, showing a 15% increase when compared to that of 2Q10. This higher EBITDA is mainly explained by the raise in CMPC's consolidated sales. The EBITDA margin reached 29%, one point higher than that of the previous quarter.

CMPC registered a Net Income of US$254 million during 3Q10; showing a 107% increase when compared to that of 2Q10. This was mainly explained by the higher level of EBITDA registered during the quarter, as well as a US$50 million advance payment received from insurance companies corresponding to business interruption claims due to the earthquake. This payment was recognized under the "Other gains (losses)" account of the Income statement. With the information available as of today, the management estimates that the balance of compensations to be received from insurance companies regarding business interruption, should reach an amount close to US$75 million.

CMPC’s net debt as of the end of 3Q10 stood at US$2,248 million, presenting a US$73 million increase when compared to that as of June 30th, 2010. This was mainly explained by the higher level of indebtedness reached by some of the foreign subsidiaries, as well as the negative effect of the dollar depreciation in loans denominated in local currencies. CMPC closed the quarter with US$2,889 of total debt and US$641 million of cash.

During the quarter CMPC started up two new tissue paper machines; one in the Altamira mill in Mexico (which is the third machine in that facility) and the other one in the new Gachancipá tissue paper mill in Colombia.

Key Figures US$ Million

3Q09

2Q10

3Q10

∆%Q/Q

∆%Y/Y

FY 2009

FY 2010

∆%Y/Y

Sales EBITDA EBITDA Margin Net Income

819 164 20% 63

1,007 281 28% 123

1,125 322 29% 254

12% 15% 1% 107%

37% 96% 9% 301%

2,209 433 20% 145

3,069 836 27% 458

39% 93% 8% 216%

CAPEX

2

40

121

131

8%

231%

284

496

75%

Total Assets Net Debt Market Capitalization

10,559 1,317 7,028

12,322 2,175 9,609

12,733 2,248 11,839

3% 3% 23%

21% 71% 68%

10,559 1,317 7,028

12,733 2,248 11,839

21% 71% 68%

Closing Exchange Rate Average Exchange Rate

550.36 548.34

547.19 531.68

483.65 503.17

-12% -5%

-12% -8%

550.36 568.54

483.65 519.99

-12% -9%

Forestry

Pulp

Papers

Tissue

Paper Products


3Q10

Income Statement Analysis

Total revenues reached US$1,125 million during the quarter, a 12% higher when compared to those of 2Q10. During the quarter, there were higher sale prices in all business areas, except from 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. Forestry prices also showed an increase. This was mainly explained by a higher domestic activity, as well as a raise in external demand. Finally, local currencies appreciation raised Tissue prices when measured in US Dollars. On the other hand, sale volumes were positively affected by the normalization of the Company's activity level, which was affected by the earthquake. The above explains the sharp increase registered in the volumes sold of Pulp. Nevertheless, this was partially offset by the lower volumes reached by the Forestry and Paper Products businesses. Regarding Forestry volumes, the decrease was mainly explained by a delay in a sawn wood shipment, while in the case of Paper Product’s volumes the decrement was attributable to the seasonality of the fruit export business in Chile.

Sales Breakdown Analysis to Third Parties

Total Revenues Evolution 1,125 1,007 819

3Q09

2Q10

3Q10

CMPC’s consolidated EBITDA reached US$322 million, 15% above than 2Q10’s EBITDA. This growth is mainly explained by the higher EBITDA of the Forestry, Pulp, Paper and Tissue divisions. Nevertheless, this was partly offset by a decrease in the EBITDA of the Paper Products business.

EBITDA Variation by Business

EBITDA Evolution 322 281

164

3Q09

2Q10

3Q10

Net Income during the quarter reached US$254 million, a 107% higher than that of 2Q10. This increase was mainly explained by the higher level of EBITDA, as well as a US$50 million advance payment received from insurance companies corresponding to business interruption claims due to the earthquake. All the above was partially offset by an inferior Net biological income, as well as a higher Price level restatement adjustment.

Net Income Evolution

Net Income Analysis

254

123 63

3Q09

Forestry

2Q10

Pulp

3Q10

Papers

Tissue

Paper Products

3

3


3Q10

Income Statement Analysis Sales to Third Parties Breakdown by Destination FORESTAL

A breakdown of CMPC’s sales to third parties by destination during 3Q10 shows that 53% of the sales correspond to exports, 21% to the domestic market in Chile and 26% to domestic markets of foreign subsidiaries. During 3Q10, export sales increased their contribution to CMPC’s consolidated sales, when compared to that of 2Q10. This was mainly explained by the normalization in export levels after the earthquake that affected Chile, especially those of Pulp, Forestry and Papers. Moreover, 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 3Q10 shows that the Pulp and Tissue businesses contributed with 34% and 32% of total revenues, followed by Paper contributing with 17% of total sales. Finally, the Forestry and Paper Products divisions represented 10% and 7% of total revenues respectively. It is important to note that Pulp sales did not exceed Tissue sales since 2Q08. CMPC’s EBITDA breakdown by business for 3Q10 shows that the Forestry division experienced a sharp increase in its contribution to consolidated EBITDA. This was mainly explained by a raise in its sales, as well as the lower costs reached, in response to the higher level of efficiency in the handling of wood, as well as the better productivity and lower freight costs registered during the quarter. During 3Q10, Tissue’s EBITDA remained almost unchanged despite the increase registered in its sales. This was partially explained by the start up of the Colombian and Mexican projects, which implied specific marketing and distribution costs to prepare the market for the entrance of the new capacity. On the other hand, the EBITDA of the Pulp and Forestry divisions were benefited by the higher level of sales registered during 3Q10. Finally, Paper Products’ EBITDA decreased in two points its contribution to total EBITDA, mainly explained by the seasonality of the fruit export business in Chile.

2Q10 Sales Breakdown by Business Area Paper Prod. 8%

3Q10 Sales Breakdown by Business Area Paper Prod. 7%

Forestry 11%

Tissue 32%

Tissue 32%

Pulp 32%

Pulp 34%

Papers 17%

Papers 17%

2Q10 EBITDA Breakdown by Business Area

Tissue 14%

.

Paper Prod. 4%

3Q10 EBITDA Breakdown by Business Area

Tissue 13%

Forestry 9%

Pulp 62%

Forestry

Paper Prod. 2%

Forestry 14%

Papers 13%

Papers 11%

4

Forestry 10%

Pulp

Pulp 58%

Papers

Tissue

Paper Products


3Q10

Income Statement Analysis

The Forestry and solid wood business registered a 6% increase in sales (+US$6 million) during this period when compared to those of 2Q10. This was mainly explained by a 13% increase in sale prices. Nevertheless, this was partially offset by a 6% reduction in sale volumes. This was the case of sawn wood (-11%), which suffered a delay in one of its shipments with destination to Asia. On the other hand, plywood (-6%) and sawing logs (-4%) also registered a decrease in volumes. All the above was partially reversed by a 22% and 8% increase in remanufactured and pulpwood sale volumes.

FORESTRY

∆% Sales: +6% ∆% Volumes: -6% ∆% Price: +13%

Pulp sales increased by 18% (+US$59 million) during 3Q10 when compared to those of 2Q10, which was mainly due to a 23% increase in CMPC’s sale volumes. Nevertheless, this effect was partially offset by a 4% reduction in pulp average effective price (including the sales of P&W integrated papers). Hardwood volumes increased 27%, while those of softwood increased by 17%. All the above is mainly explained by the normalization of the pulp business activity after the earthquake. It is important to highlight that during 3Q10 there were recognized the volumes of a delayed vessel, which was supposed to reach Europe during 2Q10. This resulted in a 27% increase in hardwood volumes delivered to that continent during 3Q10. Average effective price reached CIF 820 US$/ton and CIF 786 US$/ton for softwood and hardwood respectively. During this period, the spread between both fibers reached CIF 34 US$/ton.

PULP

∆% Sales: +18% ∆% Volumes: +23% ∆% Price: -4%

Paper business during 3Q10 registered a 13% increase (+US$21 million) in consolidated sales, when compared to those of 2Q10. This was mainly explained by the higher prices and sale volumes reached during the quarter. It is important to note the positive effect of the normalization in the level of activity after the earthquake in all papers grades production.

PAPERS

A breakdown of the different paper grades in this business shows that newsprint volumes registered a 20% increase when compared to those of 2Q10. Additionally, prices raised by 9%, following the upward trend registered in foreign markets since January 2010. On the other hand, boxboard prices increased 5% when compared with those of 2Q10, mainly driven from the higher demand coming from certain markets such as Brazil. Moreover, sale volumes were up by 4%. Finally, packaging paper sale volumes were down by 12% compared to those of the previous quarter. Average sale price increased 20% when compared to that of the previous quarter.

∆% Sales: +13% ∆% Volumes: +2% ∆% Price: +10% TISSUE

∆% Total Sales: +11% ∆% Volumes: Paper:+8%/Diapers&FCP:+6% ∆% Price: Paper: +2%/Diapers&FCP:+8%

Paper products business during 3Q10 registered a 4% decrease (-US$4 million) in sales compared to those of 2Q10. This decrement is mainly attributable to a 15% reduction in sale volumes. This is mainly due to the seasonality of the fruit export season in Chile, which meant a reduced demand for fruit boxes during this quarter. Because of this, demand for corrugated boxes decreased by 21% when compared to that of 2Q10. Nevertheless, if we compared volumes reached during the quarter with those showed in 3Q09, we can appreciate a 3% increment. On the other hand, molded pulp trays volumes were down by 46%, due to a reduction in apple exports. Finally, paper bags volumes increased 16%. This was mainly explained by the higher domestic sales volumes reached by the subsidiaries in Mexico (+51%), Peru (+15%) and Argentina (+7%). Average selling price recorded an increment of 14%, when compared to that of the previous quarter.

PAPER PRODUCTS

∆% Sales: -4% ∆% Volumes: -15% ∆% Price: +14%

Forestry

Tissue business, including operations in Chile, Argentina, Peru, Uruguay, Mexico, Colombia, Ecuador and Brazil, showed an 11% increase in sales (+US$35 million) during 3Q10, when compared to those of 2Q10. This was mainly explained by the higher production showed by foreign subsidiaries, especially those of Mexico and Colombia, as a consequence of the start up of new projects in both markets. During the quarter, volumes of tissue paper products were up by 8%, whereas those of diapers and feminine care products increased by 6%. Finally, average sale price (measured in US Dollars) increased 2% in the case of tissue paper; whereas those of diapers & feminine care products increased 8%, when compared to those of 2Q10. This was mainly explained by the local currencies appreciation, which increased tissue prices when measured in US Dollars.

Pulp

Papers

Tissue

Paper Products

5


3Q10

Income Statement Analysis

Operating costs excluding depreciation, stumpage and decrease due to harvest amounted to US$667 million, 12% higher than those of 2Q10. At a consolidated level, Operating costs in 3Q10 were 59% of total sales, remaining at the same percentage than that of 2Q10. Other operating expenses reached US$135 million, 4% higher than that of 2Q10. This was mainly explained by the raise in Administration costs and Other operational expenses. This account represented 12% of total sales, one point lower than that recorded in 2Q10. Financial expenses during 3Q10 increased 5% when compared with those of 2Q10, in response to the higher level of debt reached by the Company. On the other hand, CMPC’s Financial Income registered a 120% increment when compared to that of 2Q10, totaling US$4 million. This was mainly explained by the higher level of cash handled by CMPC. 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 3Q10, registering a US$22 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$6 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$33 million gain was recognized under this account. It is important to highlight that during the quarter, a US$50 million advance payment was received from insurance companies corresponding to business interruption claims due to the earthquake. With the information available as of today, the management estimates that the balance of the compensation to be received from insurance companies regarding business interruption, should reach an amount close to US$75 million. Income taxes for the period implied a US$22 million gain, registering an US$73 million increment when compared with that of the previous quarter. This was mainly due to the positive variation resulting from the Price level restatement effect arising from Deferred taxes, because of the US Dollar depreciation.

6

Forestry

Pulp

Papers

Tissue

Paper Products


3Q10

Balance Sheet Analysis th

th

As of September 30 2010, Current assets registered a 15% increase when compared with those as of June 30 , 2010. It is important to note that the Cash and cash equivalents account showed a 13% increment, as a consequence of the higher operational cash flows, as well as the advance payment received from insurance companies as a consequence of business interruption effects. On the other th hand, Non current assets remained stable when compared to those as of June 30 , 2010. th

Current liabilities were up by 8% when compared with those as of June 30 , 2010. This was mainly explained by the increment registered in the Operative receivables account. On the other hand, Non current liabilities presented a 1% increase when compared th with those as of June 30 , 2010. th

CMPC’s financial debt stood at US$2,889 million as of September 30 2010, showing a US$149 million increment when compared to th that as of June 30 , 2010. This was mainly explained by the higher level of indebtedness reached by some of the foreign subsidiaries, as well as the negative effect of the dollar depreciation in loans denominated in local currencies. On the other hand, CMPC’s net th financial debt reached US$2,248 million as of September 30 2010, registering an increase of US$73 million when compared to that th as of June 30 , 2010. It is important to highlight that CMPC closed the quarter with US$641 million of cash. On the other hand, the Net financial debt/EBITDA ratio registered a QoQ variation from 2.5 to 2.2 times, mainly explain by the higher EBITDA generation. Moreover, the financial coverage ratio also showed a favorable financial evolution during the quarter, when compared to that observed in 2Q10. As of the end of 3Q10, 69% of CMPC’s debt was denominated in USD, 21% was denominated in Chilean pesos (or Unidades de Fomento) and the balance in other local currencies. On the other hand, 80% of CMPC’s total financial debt has a fixed interest rate, whereas the balance has a floating interest rate. th

Debt Breakdown as of September 30 , 2010 (i) (ii) (iii) (i) (ii) (iii)

In Million US$

2Q10

3Q10

∆% QoQ

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

456 2,395 (44) (35) (10) (23)

476 2,533 (43) (68) (3) (6)

4% 6% -2% 93% -71% -73%

Total Debt ( (i) + (ii) + (iii) + (iv) + (v) + (vi) )

2,740

2,889

5%

565

641

13%

Net Debt

2,175

2,248

3%

Average Cost of Debt

4.6%

4.4%

-0.2%

Cash and Cash Equivalents

th

Amortization Schedule as of September 30 , 2010

Financial Ratios Evolution

493 326

282

299

249 172

135

90 2010

363

2011

2012

2013

2014

2015

2019

2027

2030

Shareholders’ Equity presented a US$280 million increase when compared to that of 12Q10. 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


3Q10

Relevant Events

8

During the quarter, a new tissue paper machine started operations in Mexico: in August, the third tissue paper machine of the Altamira mill started its productive operations. This machine, which implied a total investment of US$60 million, has a total production capacity of 50 thousand tons of tissue paper per year. As a result, the Altamira mill reached a total capacity of aproximally 90 thousand tons of tissue paper per year.

During the quarter, a new tissue paper machine started operations in Gachancipá, Colombia: in August, the first CMPC tissue paper machine started operating at the new Gachancipá mill in Colombia. This facility, which implied a total investment of approximally US$70 million, has a total production capacity of 27 thousand tons of tissue paper per year.

CMPC approves the construction of a new tissue paper machine in Chile: CMPC’s board approved the construction of a new double width tissue paper machine in the Talagante mill, Chile. This new machine implies a total investment of approximally US$70 million for 50,000 tons of production capacity per year. This project should start operations in 1H12. With this investment, the Chilean installed capacity will reach close to 170,000 tons of tissue paper per year.

Publication of CMPC’s Sustainable Development Report: On September 30th, CMPC published the sixth version of its Sustainable Development Report. This document captures the essence of the company’s business model, which allows CMPC to establish long-term relationships with employees, suppliers, service companies, customers, environment and neighboring communities. Social responsibility is an integral part of the CMPC business and organizational model, allowing effective linking to all stakeholders. This report is now available, at CMPC’s web site (www.cmpc.cl).

A CLP$120 (US$0.25) cash dividend was announced: CMPC’s board approved in November a CLP$120 dividend to be nd paid on each outstanding share. This dividend will be distributed on December 22 , 2010.

Forestry

Pulp

Papers

Tissue

Paper Products


3Q10

Consolidated Balance Sheet

2009 1Q09

Figures in Th. US$*

2Q09

2010 3Q09

4Q09

1Q10

2Q10

3Q10 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

2,601,632 761,487 694,044 747,318 169,195 121,080 108,508

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

15%

18%

13%

-24%

13%

45%

12%

29%

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

9,507,385 113,499 139,540 5,985,334 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

0%

21%

30%

2356%

2%

42%

10,043,845

10,115,910

10,558,836

12,109,017

12,207,256

12,322,086

12,732,523

3%

21%

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

8%

55%

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

3,718,348 2,516,940 953,114 248,294

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

153,567

153,675

153,768

157,648

157,508

158,321

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

12%

8%

27%

142%

49%

114%

-37%

-

1%

19%

0%

20%

17%

58%

5%

40%

14%

52%

0%

114%

1%

21%

6%

36%

-13%

0%

15%

-4%

159,649

1%

4%

6,410,598

6,413,112

6,453,085

7,100,445

7,154,015

7,223,263

7,503,108

4%

16%

10,043,845

10,115,910

10,558,836

12,109,017

12,207,256

12,322,086

12,732,523

3%

21%

* 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


3Q10

Consolidated Income Statement

2009 1Q09

Figures in Th. US$

Sales Operating Costs (1)

2Q09

2010 3Q09

4Q09

1Q10

2Q10

3Q10 3Q10

QoQ

YoY

12% 12%

37% 24%

11%

62%

4%

15%

698,394 (489,543)

691,295 (460,459)

819,150 (536,563)

914,770 (579,299)

208,851

230,836

282,587

335,471

333,867

410,981

(69,544)

(100,974)

(118,115)

(125,556)

(101,005)

(130,024)

(135,284)

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%

15% 1%

96% 9%

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)

-8% -20% 0%

8% 585% 0%

80,316

55,348

85,385

147,501

168,750

(88,092) 63,360 (46,473) ######### 205,973 251,211

0%

0%

(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

120% 187% -471% -28% -2227% -143% 0%

116% 85% -223% -309% -4549% -223% 0%

53,393

28,119

63,442

123,263

80,222

123,126

254,370

0%

0%

Operating Margin Other Operating Expenses

(2)

Operating Income Financial Expenses Financial Income Share Results in Associated Companies Exchange Rate Differences Price Level Restatement Other Gains (Losses) Income Taxes Net Income

937,568 1,006,624 1,124,584 (603,701) (595,643) (666,884)

4Q10

457,700

(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


3Q10

Consolidated Cash Flow Statement

2009 1T09

2010 2T10

3T10

263,312 0 0

179,015 0 0

177,622 0 0

199,608

12%

-24%

28,120 (31,541) 66,201 0 31,038 (60,313) (6,805) 133,031 28,763 (799) 0 0 (167,206) 0

63,442 17,638 70,889 0 (14,324) (49,753) (3,486) 68,031 100,953 9,922

80,222 32,885 84,139 0 242 (32,072) (3,750) 78,923 (48,971) (12,603) 0 0 (215,501) 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)

107% -143% -13% -60% 1320% -65% 187% -70% 2% -440%

301% -223% 3% -292% -9% 85% -39% -211% -272%

(137,216) 0

0

0%

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

2 (74,313) (17,442) 5,821 1 3,604 0 0 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

0 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

0

0%

0%

258,750 258,750 (201,198) (35,311) (32,735) 8,057 0

270% 270% 77% 8% -5% -200% 0%

-28% -28% -19% 104% 14% 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

16,712 24,778 534,976

297,014 (27,359) 576,466

(81,016) (18,727) 761,487

(78,665) (17,629) 661,744

25,090 50,824 565,451

-132% -388% -15%

-92% -286% -2%

Cash and Cash Equivalents at the End of the Period

534,976

576,466

846,121

661,744

565,451

641,364

13%

-24%

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

Forestry

Pulp

2T09

3T09

89,755 0 0

187,695 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

Papers

4T09

3Q10

1T10

Figures in Th. US

0 0

Tissue

4T10

Paper Products

ToT

AoA

-8404% -394550% 44% 29% -36% 100% -221% -277% -100% -100% 460% 132% 1% 0% 0%

11


3Q10

Sale Volumes

Domestic Sales(1)

(Th. m3ssc)

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

3Q10 ∆%Q/Q ∆%Y/Y

Total Sales

Exports

3Q09

2Q10

3Q10

3Q09

2Q10

3Q10

3Q09

2Q10

3Q10

546 0 60 0

618

550

210

225

775

51

210

225

762 0 276 0

828

82

216 0 216 0

292

276

17 0 50 14 10 0

34

33

442

131 79 38

137 84 43

377 0 178 90 54 0

386

86 16 8

359 0 128 75 44 0

353

87 17 5

218 96 43

114

122

1

0

70 49

58 39

5 2

5 2

110 0 59 39

109 0 53 38

1 0 6 1

475

-6% 0% -5% 0% 23% 0%

2% 0% 0% 0% 26% 0%

223 100 51

2% 4% 20% 0%

25% 11% -5% 0%

114

123

74 51

63 40

8% 0% -15% -21%

12% 0% 6% 3%

(1) Co nsiders Chile and Fo reign Subsidiaries (2) The CTM P To ns pro duced by M elho ramento s were reclassified as Pulp

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


2010-3Q10-Empresas-CMPCs-Press-Release