Page 1

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

2010-4Q10-Empresas-CMPCs-Press-Release  
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