Annual Report 2003s21.q4cdn.com/798526818/files/doc_financials/Annual_report/...e are pleased to...

CmpcS.A.

Empresas

A n n u a l R e p o r t 2 0 0 3

Content

006Letter to Shareholders

017Business Description and Development

012CMPC and the Community

006 Letter to Shareholders009 Board of Directors, Committee of Directors,

and Management012 CMPC and the Community017 Business Description and Development 039 Financial Review 046 CMPC Ownership Structure 049 General Information057 Consolidated Financial Statements112 Overseas Representatives114 Bankers115 General Contact Information

Empresas CMPC S.A.

Established in 1920, Empresas CMPC S.A. is a public limited company whose capital is divided up into 200 million shares held by 8,593 shareholders.

Its forest assets consist of 709,018 hectares, principally of Radiata Pine and Eucalyptus forests.

During 2003 sales amounted to ThCh$ 993,021,600. Profits were ThCh$ 124,603,846, equivalent to CH$ 623.02 per share.

This integrated forestry group operates through the following subsidiaries:

Forestal Mininco S.A.

Forestry and Sawmill businesses.

CMPC Celulosa S.A.

Long and short fibre chemical pulp and fluff pulp business, running the Pacifico (470,000 tons/year), Santa Fe (360,000 tons/year), and Laja (335,000 tons/ year) mills.

CMPC Productos de Papel S.A.

Handles CMPC's paper conversion busi-nesses, operating through five subsi-diaries: Envases lmpresos S.A., Envases Roble Alto Ltda., Productos Austral S.A., Propa S.A. (with subsidiaries in Argentina and Peru), and Chimolsa S.A.

CMPC Papeles S.A.

Produces folding boxboard, printing and writing paper, corrugating materials (testliner and fluting paper), wrapping paper, newsprint, and other papers. Its subsidiaries are: Papeles Cordillera S.A., Cartulinas CMPC S.A., lndustrias Forestales S.A. and the distribution company Edipac S.A.

CMPC Tissue S.A.

T issue and san i ta ry p roducts manufactured in Chile, Argentina, Uruguay, Peru and Brazil.

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CmpcS.A.

Empresas

A n n u a l R e p o r t 2 0 0 3

The Board of Directors ofEmpresas CMPCFrom left to right: Arturo Mackenna I., Manuel Mardones R., Jorge Gabriel Larraín B., Eliodoro Matte L., Jorge Marín C., Ernesto Ayala O.,Patricio Grez M., Bernardo Matte L.

e are pleased to submit for your consideration our Annual Report, the Company's Balance Sheet and the Income Statement for the last fiscal year.

In early 2003 the outlook for the world economy was bleak as a result of several blows to consumer and investor confidence: financial scandals involving major US and European companies; the Iraq conflict and its impact on energy prices; and the impact of SARS on the Developing Asian economies, especially affecting China, which was the only region showing strong growth. The European Community showed little sign of improving its economic activity due to the structural rigidities of its key economies, and Japan was hamstrung by its weakened financial sector.

However, as the year wore on more encouraging signs came to the fore, and unlike in 2002 - when growth projections were repeatedly revised downwards - in 2003 results began to exceed expectations. Chile was not an exception, finishing the year with GDP growth of 3.2 percent, well above the 2.1 percent of the previous year. Inflation was held at 1.1 percent while unemployment remained disappointingly high at 8.5 percent on average, despite the efforts of government employment programs.

With interest rates at a 40 year low the financial market provided the ideal environment for planned debt amortization and future capital expenditure, CMPC issued US$ 300 million in 10 year notes at 4.875% per annum, the lowest rate in recent history among Chilean companies for this tenor.

CMPC's net debt totaled US$ 529.9 million at the end of 2003 compared to US$ 596.4 at the end of 2002. This has permitted CMPC to exhibit significantly more favorable interest coverage and debt to capital ratios than those required by our creditors, in and consistent with the "A-" rating assigned by Standard & Poor's to our long term dollar denominated debt.

Sales totalled US$ 1,672 million in 2003, operational profit before depreciation was US$ 443 million, and net profit amounted to US$ 210 million. This considerable increase on our profits when compared to the previous year is a result of better prices and higher sales volumes for our products.

The recent strong fall in the exchange rate and the rise in shipping costs constitute a significant challenge to the competitiveness of our export products and those that face import competition in the Chilean market. This merely reinforces our determination to manage the company as efficiently as possible.

Projects completed in recent years, such as the new US$ 95 million corrugating paper mill at Puente Alto, the expansion of capacity at our Pacifico Mill to almost 500,000 tons per annum, the second tissue paper machine in Peru, the acquisition of a corrugated cardboard plant in Til Til, and the scores of productivity enhancing initiatives have all performed beyond our expectations.

To our Shareholders:

"Our achievements and the encouraging

progress of our new projects are due to the

commitment of our workers and executives to the challenges faced

by the company."

Letter to ShareholdersLetter to Shareholders

007

W

"Profits for 2003 were considerably higher than

those of the previous year due to improved

sales volumes and prices of our products."

Board of Directors and Administration

008 009Letter to Shareholders

CmpcS.A.

Empresas

A n n u a l R e p o r t 2 0 0 3The agreement signed among CMPC and Chilean and North American environmental groups should also be highlighted. This will allow us to provide appropriate information as to our forest management standards and should put an end to the campaign against Chilean wood in the United States, thus normalizing our exports to the U.S. market.

Work has continued on the "Santa Fe 2" project: the installation of a second eucalyptus pulp production line with a capacity of 780,000 tons per annum at an estimated investment cost of US$ 700 million. The Environmental Impact Study was filed to the relevant authorities at the end of September 2003. We hope to conclude the feasibility study and obtain the necessary environmental permits as soon as possible so as to make a final decision on the project in the course of the current year.

In 2004 a new tissue paper machine will be installed at our Talagante Plant to allow us to keep up with the pace of growth in this market segment in Chile and to compete in new export markets.

We also wish to highlight the dedication to their work shown by our workers and union leaders this year. Our achievements and the encouraging progress of our new projects are due to the commitment of our workers and executives to the challenges faced by the company.

ELIODORO MATTEChairmanEmpresas CMPC S.A.

Board of DirectorsChairmanELIODORO MATTE L.Industrial Civil EngineerRut: 4.436.502-2

DirectorsERNESTO AYALA O.Civil EngineerRut: 487.554-0

PATRICIO GREZ M.Civil EngineerRut: 1.854.776-7

JORGE GABRIEL LARRAÍN B.EconomistRut: 4.102.581-6

MANUEL MARDONES R.Civil EngineerRut: 1.468.225-2

JORGE MARÍN C.Business AdministratorRut: 7.639.707-4

BERNARDO MATTE L.EconomistRut: 6.598.728-7

AdministrationChief Executive OfficerARTURO MACKENNA I.Industrial Civil EngineerRut: 4.523.287-5

Chief Administration OfficerJORGE ARAYA D.Industrial Civil EngineerRut: 5.474.358-0

General SecretaryGONZALO GARCÍA B.LawyerRut: 5.543.123-K

Chief Financial OfficerHERNÁN RODRÍGUEZ W.Industrial Civil EngineerRut: 7.051.490-7

ARTURO MACKENNA I.

Board of Directors and Management of Empresas CMPC S.A.

Committee of DirectorsERNESTO AYALA O.PATRICIO GREZ M.JORGE MARÍN C.

External AuditorsPRICEWATERHOUSECOOPERS

ChairmanELIODORO MATTE L.

Vice-ChairmanARTURO MACKENNA I.

DirectorsERNESTO AYALA O.GONZALO GARCÍA B.JORGE GABRIEL LARRAÍN B.JOSÉ IGNACIO LETAMENDI A. MANUEL MARDONES R.

General ManagerPEDRO SCHLACK H.



DirectorsGONZALO GARCÍA B.JORGE HURTADO G.BERNARDO LARRAÍN M.BERNARDO MATTE L.HERNÁN RODRÍGUEZ W.

General ManagerJORGE MOREL B.



DirectorsJORGE ARAYA D.ANDRÉS ECHEVERRÍA S.BERNARDO MATTE L.JUAN OBACH G. HERNÁN RODRÍGUEZ W.

General ManagerANTONIO ALBARRÁN R-C.



DirectorsJUAN CARLOS EYZAGUIRRE E.GONZALO GARCÍA B.PATRICIO GREZ M.EUGENIO HEIREMANS D.BERNARDO MATTE L.

General ManagerANDRÉS INFANTE T.



DirectorsJORGE ARAYA D.ERNESTO AYALA O.JORGE GABRIEL LARRAÍN B. BERNARDO MATTE L. HERNÁN RODRÍGUEZ W.

General ManagerSERGIO COLVIN T.

Forestal Mininco S.A. CMPC Tissue S.A.CMPC Papeles S.A. CMPC Productos de Papel S.A.CMPC Celulosa S.A.

Board of Directors and Managers of Subsidiaries

Management of Empresas CMPC S.A.

010 011

JORGE ARAYA D. GONZALO GARCÍA B. HERNÁN RODRÍGUEZ W.

ANDRÉS ECHEVERRÍA S.

Directors of Subsidiaries of Empresas CMPC S.A.

JUAN CARLOS EYZAGUIRRE E. EUGENIO HEIREMANS D. JORGE HURTADO G.

BERNARDO LARRAÍN M. JOSÉ IGNACIO LETAMENDI A. JUAN OBACH G.

Board of Directors and Administration

n 2003 CMPC strengthened and continued a long record of commitment to community support, manifested in the varied program of social

assistance in place. Through the years the firm's efforts have become increasingly focused on projects aimed at helping public schools to improve the quality of their education.

Fundación CMPC

Education is regarded as a key component of community development by CMPC. The Fundación CMPC aims to prov ide economically disadvantaged children living in communities adjacent to the company's operations with better opportunities by improving the education they receive in public schools.

Through its programs the Foundation provides educational support to over 13,000 children and 300 teachers in 50 schools throughout Chile.

In 2003 Mathematics and Spanish teachers in Laja, Talagante, Yerbas Buenas, Mulchén and Nacimiento underwent courses in both content and lesson planning. In total, 231 hours of the training were provided to teachers from 33 schools.

In addition, these courses were accompanied by work with the teachers and administrators of all the schools involved in the program.

To ensure a more effective transfer of skills from teacher courses to the classroom the Foundation's team visited the schools throughout the year, and held bi-monthly support meetings with teachers.

Moreover, class materials were delivered to the 17 participating schools in Tirúa, Quilleco, Santa Bárbara, Los Angeles, Lumaco, Carahue, Los Sauces, Victoria and Collipulli, and this was accompanied by seminars for school head teachers and administrators.

A seminar on "Educational Improvement in Economically Deprived Areas: Experience from the Private Sector" was held by the Fundación CMPC in conjunction with the Mustakis and the Minera Escondida Foundations in which over 600 education and business professionals participated.

The seminar's central aim was to share different experiences of educating in economically and socially disadvantaged areas of the country so as to draw lessons as to the effectiveness of different methods.

The Good Neighbourhood Plan

Forestal Mininco has strengthened its "Good Neighbourhood Plan" as a result of the difficulties encountered by companies with a large presence in the rural south of Chile in their relations with indigenous Mapuche communities. These problems are caused principally by the acute poverty in which they live and the plan is designed to assist neighbouring farms and communities.

The plan is centred on job creation: last season 510 people from the Mapuche community were employed, making up ten percent of our operational forest workforce.

Additionally, CMPC distributes a bulletin -called The Good Neighbour- three times per year, in which local communities are informed of the company's activities and of other local news.

Other activities undertaken in 2003: 103 school scholarships and 420,000 trees were donated to neighbouring communities; 212 courses for a total of 2,463 local people were run in jam-making, nutrition and medicinal plants, sewing, knitting, livestock handling and sanitation, use of greenhouses, and ecological beekeeping; 20 plant nurseries for schools were developed with a total of 160,000 plants, and 45 greenhouses were set up; 3,000 apple trees were donated to 1,360 families; 6 community forest nurseries were created, benefiting 54 families; and 18

CMPC and the CommunityCMPC and the Community

013

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001

002

tagasaste (a leguminous fodder plant) nurseries were planted, directly benefiting 108 families.

Furthermore, educational talks were given at 593 schools to a total audience of 23,401 children and adults; fire prevention talks focused on high risk areas were heard by 2,400 local people; and the thirteenth version of our renewable natural resources course took place, meaning that over 1,280 teachers from rural areas have now been on this course.

The Jorge Alessandri Educational Park

The Park has now been in operation for ten years and has provided educational support to the region by developing activities such as guided walks along the Park's trails and those of the Native Forest, and the cultural and artistic programs of the "Cultural Amphitheatre". New booklets, contents and material were developed for each aspect of the Park's educational work in 2003.

This year the company expanded the Park's educational and entertainment activities by creating the Educational Nursery and the Sala de Arbol. Visitors to the Sala de Arbol are able to observe the entire process of the transformation of a tree into final products such as wood pulp and paper thanks to videos, displays, games and other interactive

activities, and are thus made aware of the role forest products play in our lives.

In 2003 the Park received a total of 112,000 visitors.

Other Contributions

CMPC actively supports other social and business organizations such as ICARE, SOFOFA, CEP, Paz Ciudadana, Hogar de Cristo, Fundación Las Rosas, Fundación Prohumana, CORMA, among others.

The company is an active patron of the arts in Chile, supporting the Artequin Museum, the Municipal Theatre (Chile's principal opera and classical music venue) and the literary competitions of the Mercurio newspaper's book magazine.

The company also supports many fire stations throughout the country, helping what is in Chile a partially voluntary organization.

Through our educat iona l webs i te www.papelnet.cl CMPC provides a valuable resource to the students of Chile and others abroad by providing a wide range of information relating to forests, paper and wood pulp.

001Fundación CMPC supports over 13,000 students and 300 teachers in 50 schools throughout Chile.

002The Good Neighbourhood Plan runs knitting and sewing courses for local women, as well as many other activities.

003La Sala del Arbol was inaugurated in the Jorge Alessandri Educational Park this year.

Through the years the firm's efforts have become increasingly focused on projects aimed at helping public schools to improve the quality of their education.

014CMPC and the Community

Business Development

017

CmpcS.A.

Empresas

A n n u a l R e p o r t 2 0 0 3

018 Forestry022 Pulp026 Paper and Folding Boxboard030 Tissue 034 Paper Products

MPC's Forestry area is in charged with the development and management of forest assets to support the industrial development of the group,

maximizing the present value of its forests while ensuring sustainability in the long term.

The timber produced by the company's forest plantations is principally used in our sawmills for the domestic and export markets and to supply pulpwood for CMPC's pulp and paper mills.

In Corrientes Province, Argentina, our subsidiary Bosques del Plata owns over 60,000 hectares of Taeda and Elliotti pine plantations. Approximately 6,000 hectares are planted annually, in order to achieved 100,000 hectares of plantations, to supply pulpwood for a future pulp mill in that location.

In Chile's extreme southern region of Aysén, CMPC has planted 15,511 hectares of Ponderosa pine and Douglas Fir in areas that have suffered heavy soil erosion.

CMPC Maderas operates three sawmills in Chile's VIIIth region -Bucalemu, Mulchén and Nacimiento- producing sawntimber out of Radiata pine. In addition, the remanufacturing plant in Los Angeles produces mouldings, solid panels and finger joints.

CMPC's forest assets increased by more than 53,000 planted hectares

during 2003.

BUSINESS DESCRIPTION

General ManagerPEDRO SCHLACK H.

Forestal Mininco S.A.



DirectorsERNESTO AYALA O.GONZALO GARCÍA B.JORGE GABRIEL LARRAÍN B.JOSÉ IGNACIO LETAMENDI A.MANUEL MARDONES R.

BUSINESS DEVELOPMENT

ForestryForestry

019

COver the course of the year, 16,042 hectares of new plantations were established in Chile: 11,655 of Pine, 3,472 of Eucalyptus (principally Globulus) and 915 of other species.

To this end we produced 29 million plants via vegetative propagation, more than tripling our production of Radiata pine plants with superior genetic characteristics. These are significantly more effective than plants produced via seedlings.

The total forest area damaged by fires in the 2002-2003 high risk season was 440 hectares.

In early 2003 CMPC acquired Forestal y Agrícola Monteáguila S.A. including 32,000 hectares of eucalyptus plantations in Chile's VIII and IX regions, along with 10,000 hectares of to-be-planted land.

In November 2003, CMPC acquired Forestal Coihueco S.A. including 8,000 hectares of principally Radiata pine and eucalyptus Nitens plantations.

Important progress was achieved in risk prevention this year that, for the first time in the history of Forestal Mininco, the additional risk premium payment has been reduced to zero from 2004. In view of this achievement, the Chilean Safety Association (ACHS) awarded us the "2003 Effort Award".

The Environmental Management System implemented by Forestal Mininco atISO 14,001 standard was audited and approved without observations by SGS. In December SGS also performed the certification audit for sustainable management under the CERTFOR Chile standard.

An historic agreement was signed among the forestry firms CMPC and Arauco, and the environmental groups ForestEthics, Greenpeace, Defensores del Bosque Chileno, Rainforest Action Network, NRDC, American Lands Alliance, Instituto Ecología Política,

003

001Major progress was made in risk prevention in 2003.

002CMPC Maderas increased production of sawntimber by 10.3% in 2003.

003Forestal Mininco successfully recertified its Environmental Management System under the ISO 14,001 standard.

001 002

Forestal Mininco certified its Safety and Occupational Health Management System under the OHSAS 18,001 standard.

In addition, Forestal Mininco manages 3,868 hectares belonging to Sociedad Inversora Forestal

020Forestry

Plantation Forest Assets as of December 31st 2003 (Hectares)

Company Pine Eucalyptus Other Species Areas to be planted Other Uses Total

Forestal Mininco 223.278 57.858 17.707 16.021 107.090 421.954

Forestal Crecex 66.871 23.415 337 6.183 36.461 133.267

Forestal Monteáguila 2.202 34.650 259 4.602 17.801 59.514

Subtotal Chile 292.351 115.923 18.303 26.806 161.352 614.735

Bosques del Plata 56.706 3.263 147 7.455 26.712 94.283

Total 349.057 119.186 18.450 34.261 188.064 709.018

Bosque Antiguo-Chile and Fundación Terram. The agreement was the result of the US retail company Home Depot bringing together the Chilean forestry firms and environmental groups at its offices in Atlanta to discuss the grounds for the campaign against Chilean wood in the US.

The agreement commits both parties to a defined and constructive process of native forest protection.

In the text of the agreement the NGOs publicly recognized CMPC and Arauco's leadership of the Chilean forestry industry and the high standards of plantation management in place.

This year there were almost no registered crimes against company equipment or personnel, but certain specific rural localities were the site of intense agitation, and significant company effort was required to allow normal business activity. It is important to mention the strong commitment from the government to persecute criminal activity.

CMPC Maderas increased production of sawn timber by 10.3% in 2003. At the Nacimiento Plant cutting edge electronic technology was incorporated into the production processes.

The financial results from our sawmill operations were weakened by a fall in prices in the US market resulting from excess supply, especially with regard to our highest value added products. Middle East demand remained strong, allowing us to attain record sawntimber export sales.

On Sunday the 9th of November a fire totally destroyed the building and sawmill machinery of the Mulchén Plant, which was not in operation that day. No one was hurt, and the machinery for associated processes such as the boiler, drying process, drymill and part of the reprocessing system escaped damage and remain in operation.

MPC Celulosa is a major international softwood and hardwood pulp producer. The Laja, Pacifico and Santa Fe mills produce over a million tons of

chemical pulp per annum, which is sold to over 200 clients in thirty countries in Europe, the Amer icas, As ia and Ocean ia . Approximately 20 percent of consolidated production is consumed in Chile, principally by CMPC subsidiaries.

The wood used in our mills is sourced exclusively from planted forest plantations owned by CMPC or other independent forestry companies that are all managed according to principles of sustainable forest management.

The Laja and Pacifico mills produce softwood pulp made from Radiata pine, the bulk of which is bleached pulp. However unbleached pulp is also produced, as well as fluff pulp which used in the manufacture disposable diapers and sanitary napkins.

Furthermore, the Laja mill has two paper machines in operation, producing printing and writing and sackraft paper.

The Santa Fe mill produces bleached hardwood eucalyptus pulp. This pulp is mainly used in the production of both printing and writing and tissue paper. Approximately 75 percent of this pulp is sold on international markets.

PulpPulp

CMPC Celulosa produced 1.143 million tons of market pulp in 2003.


General ManagerSERGIO COLVIN T.

CMPC Celulosa S.A.



DirectorsJORGE ARAYA D.ERNESTO AYALA O.JORGE GABRIEL LARRAÍN B.BERNARDO MATTE L.HERNÁN RODRÍGUEZ W.


023

CCMPC Celulosa produced 1.143 million tons of wood pulp in 2003, which compares favorably to the 1.065 million tons produced the previous year.

Our Laja Mill achieved record production levels with an output of saleable pulp of 360,000 tons, while the Pacifico Mill produced 460,000 tons completing, attaining this output level two months ahead of schedule according to the PROPAC improvement project's learning curve. Finally, Santa Fe output at 344,000 tons was slightly above the levels attained in 2002 despite the 18 day shut-down required by the PROSAK project.

During 2003 the Preliminary Study for the PROFAL 4 project of improvements at the La ja Mi l l was completed and the Environmental Impact Declaration was submitted to the relevant environmental authorities (CONAMA) in September 2003. Once authorization is obtained the project will be implemented in two phases. The first, requiring an investment of US$22.8 million, is a series of process modernizations, most notably a secondary effluent treatment stage. The second stage wi l l add oxygen delignification process at a cost of US$ 18.5 million.

A series of projects updating control systems in the caustification, bleaching and Paper Machine 12 processes have been successfully implemented, as well as the white liquor improvement project, which has reduced consumption of chemical products.

The annual stoppage at the Santa Fe Mill allowed the final implementation of the improvements associated with the PROSAK project. This project has increased production volumes to 360,000 tons per annum, reduced bleaching costs, improved pulp quality, and enhanced the process' environmental performance.

002

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CMPC Celulosa began direct purchasing of pine and eucalyptus timber from third parties.

The Environmental Impact Study (EIS) of our projected second line at the Santa Fe Mill, designed to produce 780,000 tons per annum at an estimated investment cost of US$ 700 million, was submitted to the authorities on September 30th. Official approval of the EIS is expected in the first semester of 2004.

Our project connecting the Pacifico and Santa Fe Mills to the power line that supplies the Laja Mill and Inforsa from the Charrúa node of the Interconnected Central System (Chile's main power grid) was completed in early December. A 220 kV substation was built at Santa Fe and a 42 km high voltage line was run between Pacifico and Santa Fe, as well as the necessary control and safety devices.

In late August the new turbo-generators began operation at both Pacifico and Laja. A 42 MW turbo-generator was installed at Laja to replace the GE turbo-generator in place, thus considerably increasing the mill's capacity for self-generation of electric power. Pacifico Mill now runs a 38MW turbo-generator that operates on the steam generated by the mill and it may potentially make use of a power boiler currently under consideration.

In June CMPC Celulosa began direct purchasing of pine and eucalyptus timber from third parties, a matter of importance at a time of rising timber demand due to the emergence of new plants coming on stream in Chile and higher woodchip demand from Japan. Eighthy percent of the pine and 35 percent of the eucalyptus used in our plants were sourced from third parties.

001The Environmental Impact Study (EIS) of a projected second line at the Santa Fe Mill was submitted in September.

002Several projects updating control systems in the caustification, bleaching and MP12 processes have been successful ly implemented at the Laja Mill.

003A turbo-generator was built at our Pacifico Mill which generates electrical power from steam generated by the production process.

024Pulp

PaperPaper

MPC is active in this business area through five subsidiaries, producing and marketing folding boxboard, corrugating materials (testliner and fluting),

newsprint, printing and writing paper, and wrapping paper.

INFORSA's Nacimiento plant produces newsprint that is sold throughout Latin America as well as in North America, the Caribbean, Asia and Europe.

Cartulinas CMPC operates folding boxboard plants in Maule (VIIth region) and Valdivia (Xth region). This output is brought to market in over 30 countries in Latin America, Asia, Europe and the United States.

Papeles Cordillera runs a plant in Puente Alto that is centred on manufacturing different grade of container board corrugated using recycled fibre as its principal raw material. The clients for this product are mainly located in Chile, while additional export markets are in Argentina, Ecuador and Peru.

SOREPA focuses on the collection of different types of waste paper and cardboard boxes for recycling in Empresas CMPC's paper mills and has facilities in Chile's major cities.

CMPC Papeles also owns EDIPAC, a paper merchant and distribution firm focusing on printing and writing papers, folding box board and others paper products.

Cartulinas CMPC performed well over the year both financially and

operationally.


General ManagerANTONIO ALBARRÁN R-C.

CMPC Papeles S.A.



DirectorsJORGE ARAYA D.ANDRÉS ECHEVERRÍA S.BERNARDO MATTE L.JUAN OBACH G.HERNÁN RODRÍGUEZ W.


INFORSA

This subsidiary has suffered from the low price cycle that has afflicted the industry since late 2001. The beginnings of a recovery in US newsprint consumption has allowed a moderate price rise, pushed forward mainly by US and Canadian producers facing difficulties due to the poor financial results of the past two years. It is important to highlight that prices in this cycle have been among the lowest in several decades.

INFORSA began exporting paper to new markets such as the United States, Mexico, Central America, England and several Asian countries in 2002, and has con-solidated its market presence this year. Taken together, these sales are greater in volume than the amount currently sold in South America.

Cartulinas CMPC

This subsidiary performed well over the year due to strong growth in export sales: these were 31 percent higher than in 2002.

The challenges implicit in exporting 80 percent of total sales require Cartulinas CMPC to focus on quality and costs. This is the driving force behind the Maule Plant's mechanical pulp modernization project, re-converting it to bleached thermo-mechanical pulp manufacturing.

The Valdivia Plant's paper machine also received technological updating, increasing the operating efficiency and production of a machine that exported 45 percent of its saleable production in 2003.

Total investment in these projects at the Maule and Valdivia plants amounted to US$ 20 million.

027

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001 002

003

Papeles Cordillera

This subsidiary performed strongly in 2003 with the consolidation of the "Minimill's" position in terms of both sales and output. Sales were 38 percent higher in 2003 as a result of the operational stability enjoyed by the machine and of the quality of the paper it manufactures, which is such that it now supplies local corrugated boxes producers, reducing their dependence on imported paper.

Moreover, Papeles Cordillera has increased its exports of corrugating materials to other box manufacturers in South America to approximately 35,000 tons with world class products.

SOREPA

SOREPA has continued to increase its operational volume by improving its processes, extending direct service to supermarkets and factories that generate waste paper and making use of its presence in Chile's principal urban centres.

EDIPAC

This subsidiary has maintained its leadership position in the paper, folding boxboard and paper products distribution market in the face of fierce competition.

001Papeles Cordillera has increased its exports of corrugating materials to other box manufacturers in South America.

002The Maule p lant has in i t ia ted a modernization project for its mechanical pulp machinery.

003In 2003 INFORSA consolidated its export position in new markets.

Papeles Cordillera performed strongly in 2003 with the consolidation of the "Minimill" in terms of both sales and output.

028Paper

ith mills in Chile, Argentina, Peru and Uruguay, CMPC Tissue produces and markets tissue products in the toilet paper category (E l i te, Confort ,

Higienol, Noble, Orquídea and Preferido), disposable handkerchiefs (Carilina de Elite and Elite), napkins (Elite, Nova and Sussex), and paper towels (Elite, Nova and Sussex).

In addition, the company markets the Babysec brand of disposable diapers and Confidence and Ladysoft sanitary napkins.

In Chile, CMPC Tissue has plants in Puente Alto and Talagante, while in Argentina operations are headed by the Zarate mill (the largest industrial tissue operation in South America) as well as a disposable diaper plant located at Naschel in San Luis province. Our Protisa and Ipusa subsidiaries (in Peru and Uruguay respectively) produce tissue products of various types.

Moreover, in these countries the company has set up a dedicated marketing and pro-duction structure that focuses on the needs of firms and organizations for specialized non-domestic products.

In Chile, Argentina and Uruguay CMPC is the market leader in tissue, while sustained growth in Peru has allowed us to place second in terms of market share. In disposable diapers, CMPC has achieved a significant market position.

CMPC Tissue received the "Best Supplier 2003" award from Chile's

Supermarket Association.


General ManagerJORGE MOREL B.

CMPC Tissue S.A.



DirectorsGONZALO GARCÍA B.JORGE HURTADO G.BERNARDO LARRAÍN M.BERNARDO MATTE L.HERNÁN RODRÍGUEZ W.


2003 witnessed a gradual recovery of tissue product sales in Argentina, with sales 20 percent higher than the previous year, almost attaining pre-crisis levels. Similarly, sales in Uruguay rose, although by less than in Argentina.

Sales growth in Peru continued, following the pattern of the preceding years, with the company further consolidating its position.

Sales of disposable diapers rose throughout the region, and especially in Uruguay where we have attained almost 50 percent market share with our Babysec Ultra and Babysec Tradicional brands. Other markets saw a sustained increase in both sales and market share despite strong competition.

In the second semester of 2003 CMPC entered the sanitary towel market with the Confidence and Ladysoft brands aimed at the middle and low end of the market. Initially, the products sold under this brand were purchased from third parties, but in 2004 they will be manufactured at the company's plant in Argentina where a machine was installed for this purpose in late 2003.

Especially worthy of note was the "Best Supplier" award CMPC Tissue received from Chile's Supermarket Association in 2003. This prize is the result of our sustained effort to provide outstanding service and strengthen our client relationships.

In Peru, Protisa's number 2 paper machine successfully completed its first year in operation, attaining over 90 percent of maximum designed production levels. It has replaced the lower capacity number 1 paper machine. Its production has been a major contribution to maintaining increased sales in Peru and reducing imports.

In Chile, modernization projects extending the working life and increasing the efficiency of paper machines 16 and 17 at our Puente Alto Plant were completed.

TissueTissue

031

W

In Brazil the CMPC office was instrumental in maintaining the market presence in Sao Paulo and Rio de Janeiro of products manufactured at the company's plants in Uruguay and Argentina.

001Regional sales rose in the disposable diaper business, and CMPC entered the regional sanitary napkins market in 2003.

002In Peru, the paper machine successfully completed its first year in operation.

0032003 saw the slow recovery of tissue product sales in Argentina.

In the second semester of 2003 CMPC entered the sanitary napkins market with the Confidence and Ladysoft brands.

001

032Tissue

Finally, the company entered the tissue paper market in Ecuador with its Elite brand products and sales of special brands to the country's main supermarket chain, capturing 10 percent of the market. We have also been active in the Bolivian and Paraguayan markets for several years.

003002

Paper ProductsPaper Products

his CMPC subsidiary operates through the following companies: Envases Impresos, Envases Roble Alto, Productos Austral, PROPA and Chimolsa in Chile;

Fabi Bolsas Industriales in Argentina, and FORSAC in Peru.

In the corrugated business CMPC owns two subsidiaries: Envases Impresos with a plant in Buin, focused on producing boxes for the fruit and salmon sectors; and Envases Roble Alto, with plants in Til Til and Quilicura producing boxes for the industrial and wine sectors.

Productos Austral manufactures notebooks and has successfully consolidated the position of its Austral, Mistral and Equalit brands. Additionally Productos Austral produces flexible packaging and office papers.

CMPC's involvement in the multiwall paper sack business is handled by subsidiaries in Chile, Argentina and Peru that supply their respective local markets, principally the cement and chemical industries. These subsidiaries also export to other countries in the region.

Chimolsa manufactures molded pulp trays for apple and avocado exports, as well as trays and cartons for eggs at its plant in Puente Alto.

CMPC corrugated box sales were 5.4 percent higher than in 2002.


General ManagerANDRÉS INFANTE T.




DirectorsJUAN CARLOS EYZAGUIRRE E.GONZALO GARCÍA B.PATRICIO GREZ M.EUGENIO HEIREMANS D.BERNARDO MATTE L.


035

TCorrugated Boxes

Envases Impresos and Envases Roble Alto have performed as expected, increasing their respective market shares.

Taking both firms together, corrugated boxes sales were 5.4 percent higher than in 2002.

The first stage of a project to increase corrugated boxes production capacity is currently in progress. Over the course of the year the Til Til Plant was enlarged and a corrugating machine was installed along with other conversion machinery. In addition, the Buin Plant was modernized. In 2004 the Buin II Plant will be built and equipped, as stipulated in the US$ 24 million investment plan for this business area.

Finally, the information systems of both subsidiaries were modernized with the introduction of SAP and a production programming system at a cost of US$ 1.6 million.

Productos Austral

Productos Austral has had another strong year in the office paper market, seeing its market share rise considerably. The Equalit brand saw sales growth of 23 percent, consolidating it as the market leader.

In the 2003 notebook season, Austral increased its market share as a result of a sales strategy focusing on its clients and on market conditions. For a third consecutive year notebooks were exported to Mexico.

001

003

Multiwall Sacks

PROPA

In Chile, PROPA'S main market remains the cement industry, which grew 4.6 percent as an industry in 2003.

Multiwall sack exports to third parties performed well over the year, making up 50 percent of total sales.

The year saw our first exports to the East Coast of the United States with the aim of diversifying our overseas sales.

In mid 2003 our Chillán Plant inaugurated a new fully automatic sack production line, which increased the plant's manufacturing capacity.

Thanks to this enlargement project, the plant's sack production reached a record level of over 120 million units.

FABI Argentina

The Argentine economy has shown signs of recovery, which has been evidenced in demand for multiwall sacks: the important cement sector showed a 30 percent increase in demand.

This recovery and strong exports have resulted in a major increase in sales: 29 percent up with respect to 2002.

Operational profit for FABI increased significantly due to sales growth and new product development which allowed entry into markets with higher margins.

001In Chile, PROPA'S main market remains the cement industry.

002In the 2003 notebook season Austral increased its market share once more.

003The first stage of a project to increase corrugated box production capacity is currently in progress.

Productos Austral's Equalit brand has had another strong year in the office paper market.

002

036Paper Products

Several programs were established for all our personnel with the aim of improving productivity and our production processes.

FORSAC PERU

In the internal market FORSAC PERU sales were very close to 2002 levels despite increasing market share in the cement market. This is attributable to stock reduction policies put in place by certain major clients.

On the other hand, export sales to Bolivia and Ecuador showed a 16 percent increase, with respect to 2002.

CHIMOLSA

In May CMPC bought 12 percent of Chilmolsa's shares from Huhtamaki, thus attaining full ownership of the company.

This was another strong year for Chimolsa: sales of moulded pulp trays for apples -the company's main product- grew 13 percent, approximately the same as overall market growth.

Sales of trays and cartons for eggs grew 3 percent despite a fall in egg production in Chile.

Chimolsa successfully strove through the year to obtain the ISO 9001-2000 certification.

Financial Analysis

039

CmpcS.A.

Empresas

A n n u a l R e p o r t 2 0 0 3

Detailed Analysis of CMPC’s Individual and Consolidated Financial Statements as of December 31, 2003.

Consolidated Operating Results

Consolidated operating profits for the year 2003 were Ch$ 181,101 million, well above operating profits in 2002, which amounted to Ch$ 134,041 million.

Wood pulp and folding boxboard exports increased in comparison to the previous year. Pulp prices have evidenced a modest recovery, as have newsprint and folding boxboard export prices.

Management and sales expenses show a slight increase on the previous year as a result of both increased export costs and the purchase of Forestal y Agrícola Monte Águila S.A. in 2003.

Consolidated Non-Operating Results

CMPC and its subsidiaries' consolidated non-operating result shows a loss of Ch$ 32,605 million for 2003, lower than the non-operating loss for the previous period which amounted to Ch$ 48,841 million.

The higher non-operating loss in 2002 was due to the Ch$ 17,991 million lost as the result of the devaluation of the Argentine and Uruguayan Pesos in 2002. This loss is shown as Exchange Differences in the Consolidated Income Statement.

Considering all the above, profits for the business year 2003 amounted to Ch$ 124,604 million after tax (post-tax profits for 2002 were Ch$ 67,309 million).

Consolidated Financial Ratios

The main Financial Ratios that relate to the Consolidated Income Statement are as follows:

• Asset turnover: indicates the relationship between consolidated total revenue and average total assets. In 2003 this ratio was 0.36, while in 2002 it was 0.34.

• Profit on consolidated revenue: profit as a proportion of operating revenue. This ratio was 12.5 % in 2003, up from 7.5 % in 2002.

• Annual return on equity: the ratio of profit for the period to average equity. Annual return amounted to 6.4 % in 2003 and 3.6 % in 2002.

• Earnings per share: amounted to Ch$ 623.02 per share in 2003 and to Ch$ 336.55 in 2002

• Return on dividends: the ratio of dividends paid during the year to the market share price at the end of the business year was 1.5 % in 2003 and 1.7% in 2002.

• Consolidated financial expense cover: profit before tax and interest payments divided by financial expenses. This figure was 5.8 in 2003 and 3.7 in 2002.

• Total inventory rotation: annual sales cost divided by average stock of goods and inputs. This rose to 4.9 in 2003 from 3.8 in 2002.

• Inventory duration: indicates for how long (on average) our inventory levels are able to cover sales at our average daily sales rate. This amounted to 72.9 days in 2003 and 94.3 days in 2002.

1. VALUATION OF ASSETS AND LIABILITIES

Assets and liabilities in the individual and consolidated financial statements are valued according to generally accepted accounting principles and standards, and the instructions issued by the Chilean Securities and Insurance Supervisor These principles and standards are described in detail in Note 2 of the consolidated financial statements.

The following criteria are worthy of note:

Time deposits and marketable securities are shown at their investment or acquisition cost, plus adjustments and interests accrued. The book value of these investments does not exceed their respective market values.

Trade accounts for sales and notes receivables are shown at their estimated realizable value and include deductions for provisions to cover bad and difficult to collect debts.

Inventories of manufactured goods are valued at direct production cost plus the cost of certain indirect inputs. This cost is below market value, as the sales price includes a profit margin.

Land, buildings, machinery and equipment are valued at inflation-adjusted cost and have been duly depreciated.

Our subsidiaries' fixed assets abroad (Argentina, Uruguay and Peru) are valued at historic cost in US dollars minus the appropriate depreciation charges.

Forest plantations are shown at their assessed value at the end of the accounting period. This valuation method aims to reflect in the accounts the higher asset and equity values that result from the natural growth of plantations.

Forest plantations due to be harvested within a year are shown in current assets under inventories.

Investments in related companies are made up of Empresas CMPC S.A.'s and its subsidiaries' share of the respective companies' equity.

Empresas CMPC S.A.'s and its subsidiaries' liabilities are shown according to the amounts committed for disbursement both in the short and long term.

Assets and liabilities in foreign currencies are shown in Chilean pesos converted at the relevant exchange rate at the close of the year.

The accounting standards applied are intended to describe the individual and consolidated financial position of Empresas CMPC S.A. and its subsidiaries in an informative manner. Consequently, there should be no significant differences between the financial or market value and the book value of assets as of December 31, 2003.

2. ANALYSIS OF INCOME STATEMENT AND ACTIVITY

2.1. Analysis of Consolidated Income Statement

Net income for the year amounted to Ch$ 124,604 million, significantly higher than the previous year's profits of Ch$ 67,309 million.

040Financial Analysis

041

Profits(millions of Chilean Pesos)

1999 2000 2001 2002 2003

124,

604

67,3

09

63,6

94

126,

414

47,7

25

totalled Ch$ 64,171 million in 2003 (69,167 million in 2002). All such amounts are after depreciation of fixed assets for Ch$ 82,181 million in 2003 (Ch$ 86,580 million in 2002), while a deduction of Ch$ 42,584 million in 2003 ($ 52,160 million in 2002) was made to the value of forest plantations due to harvesting.

Consolidated liabilities are at similar levels to consolidated assets, amounting to Ch$ 739,272 million in the year to December 31, 2003 (Ch$ 751,219 million in 2002) of which 27.7 % is made up of short term liabilities (34.5% in 2002) and 72.3% of long term liabilities (65.5% in 2002).

In 2003 the company emitted bonds for US $ 300 million in the United States. This capital was used in part to pay off debts, while the remainder will be used for future investments.

Equity increased by Ch$ 97,616 million, mainly due to profits in 2003. Other factors that bear on this figure are the increase in the value of forests owned by our subsidiaries, the subtraction of the dividends paid over the year, and the reduction in the value of harvested forests.

The main financial indicators relating to the Consolidated General Balance Sheet are as follows:

• Current Liquidity Ratio: illustrates how many times current assets cover current liabilities. This figure was 3.1 times in 2003 and 2.3 in 2002.

• Acid Test Ratio: indicates how many times liquid assets cover current liabilities, with this ratio at 2.1 in 2003 and 1.4 in 2002.

• Debt to Equity Ratio: debt as a proportion of equity. This figure was 0.37 in 2003 and 0.39 in 2002.

3.2. Analysis of CMPC's Separate Assets and Liabilities

The performance of the Parent Company's assets and liabilities is as follows:

In comparison to the previous year, current assets have declined by Ch$ 46,588 million in 2003, mainly due to a fall in the number of notes and accounts receivable from related companies amounting to Ch$ 46,851 million.

Fixed assets fell by Ch$ 506 million, as a result of depreciation charges for the period.

Under other assets, investments in related companies increased by Ch$ 152,958 million in 2003, as the result of increased investment in subsidiaries amounting to Ch$ 193,128 million. This is due to the acknowledgement of 2003 profits amounting to Ch$ 128,314 million, a net increase in the Forestry Reserve, a fall of Ch$ 15,902 million owing to harvesting, and the purchase of Forestal y Agrícola Monte Águila S.A. and Forestal Coihueco S.A. (ex-Simpson) which have a total proportional equity value of Ch$ 48,912 million. These items are counterbalanced by the negative item Increased investment value, which rose by Ch$ 27,831 million owing to the difference between the book value and the purchase price of the shares in the two firms acquired, and due to a fall in the Long term notes and accounts receivable from related companies item of Ch$ 12,162 million.

• Consolidated asset yield: profit as a proportion of average total assets was 4.5% in 2003 and 2.5% in 2002.

• Consolidated operational asset yield: the ratio of operating profit to operational assets. This was 7.3% in 2003, up from 5.6% in 2002. Fixed assets, stocks and accounts and accounts receivable are considered operational assets.

Summary of our Subsidiaries' Consolidated Income Statements

The Consolidated Income Statements of our subsidiaries (as described in the "Business Development" chapter) are summarized in the following table:

2.2. Analysis of CMPC's Separate Income Statement

Industrial, forestry and business activities are carried out by CMPC's subsidiaries, not by Empresas CMPC S.A. itself. Therefore, the appropriate financial statement for analysis is Empresas CMPC S.A. and its subsidiaries' consolidated financial statement.

The results for the year show a profit of Ch$ 124,604 million (Ch$ 67,309 million in 2002), which is principally composed of related companies' profits (Ch$ 128,314 million in 2003, and Ch$ 74,688 million in 2002).

3. ANALYSIS OF THE GENERAL BALANCE SHEET

3.1. Analysis of Consolidated Assets and Liabilities

The assets and liabilities of CMPC and its subsidiaries have been consolidated to December 31, 2003 and 2002.

Total consolidated assets amount to Ch$ 2,809,904 million (Ch$ 2,727,419 million in 2002) of which 22.6% are liquid assets (21.9% in 2002), 75.5% are fixed assets (74.7% in 2002), and 1.9% are other assets (3.4% in 2002).

The net increase in fixed assets amounts to Ch$ 82,277 million in 2003 (Ch$ 59,876 million in 2002). Investment in forest plantations and land amounted to Ch$ 88,913 million in 2003 (Ch$ 23,312 million in 2002), annual plantation growth is valued at Ch$ 58,486 million in 2003 (Ch$ 115,272 million in 2002) and industrial investment


043

Operating Revenue 198,784 375,336 295,487 219,852 123,777

Operating Costs (163,676) (199,372) (225,522) (141,366) (88,535)

Operating Results 1,351 113,921 42,807 19,063 13,669

Financial Results (334) (4,260) (176) (5,806) (2,525)

Non-operating Result (Loss) (2,416) (16,391) 1,100 (5,997) (2,787)

E.B.I.T.D.A. (*) 9,254 142,503 59,128 36,756 16,883

Net Income (461) 80,297 42,335 16,724 10,131

(*) Earnings before taxes, interest payments, depreciation, amortization and other extraordinary items

Equity(millions of Chilean Pesos)

1999 2000 2001 2002 2003

Consolidated Sales (millions of Chilean Pesos)

1999 2000 2001 2002 2003

993,

022

896,

714

876,

511

854,

667

716,

822

Investment in Fixed Assets (millions of Chilean Pesos)

1999 2000 2001 2002 2003

95,2

03

119,

204

92,4

79

153,

083

72,8

17

2,00

8,91

6

1,91

1,30

0

1,80

3,24

6

1,65

8,25

9

1,54

7,41

7

(In millions of Chilean Pesos)

ForestalMininco S.A.

and its subsidiaries

CMPCCelulosa S.A.

and its subsidiary

CMPCPapeles S.A.


CMPCTissue S.A.


CMPCProductos de

Papel S.A.and its

subsidiaries

5. RISK ANALYSIS AND EXCHANGE POSITION

Empresas CMPC S.A. exports approximately 51 % of total sales, principally to markets in Europe, Latin America, Asia and the United States. These sales are made in US dollars. In the case of domestic sales in Chile and by our subsidiaries in Argentina, Peru and Uruguay, sales are made in local currency indexed to the US dollar. Therefore, the proportion of Empresas CMPC S.A.'s revenue flow that is either in, or indexed to, US dollars amounts to over 70 % of total sales. Our expenses, both for raw materials and investments in fixed assets, are also mainly in, or indexed to, US dollars.

Only in very specific cases are export sales or payment commitments made in foreign currencies other than the US dollar. In order to avoid exchange rate risk in non-US dollar currencies, derivatives are utilized to fix the exchange rates in question. As of December 31, 2003 our main positions were forward sales worth $ 1.3 million euros to hedge machinery imports, and euro put options worth 1.5 million euros to hedge exports to Europe payable in euros.

Given that the company must regularly convert US dollars from its export earnings to cover outlays in Chilean pesos, CMPC occasionally sells short term US dollar futures. At the close of the year CMPC's net position in peso-US dollar futures contracts amounts to sales of US$ 5 million.

Considering CMPC's revenue flows are highly indexed to the US dollar, liabilities have been taken on in this currency. It has been company policy to reduce the accounting mismatch between assets and liabilities expressed in US dollars so as to minimize the extent to which exchange rate fluctuations affect profit for the year. Peso-US dollar forwards are utilized to this end, although at the end of 2003 no forward contracts are currently active.

In 2003 exchange rate fluctuations were less severe than in previous years, due both to the greater stability of the Argentinean and Uruguayan pesos and to the marked reduction in the working capital of our subsidiaries there. Empresas CMPC and its subsidiaries' Income Statements in 2001 and 2002 were adversely affected by non-operating losses due to the depreciation of the Argentinean and Uruguayan pesos, which caused a fall in the value of assets in those countries.

The Company actively handles the composition of its debt as regards the interest rate through interest rate derivatives in order to minimize the impact of fluctuation in market interest rates and to bring down financial costs. As of December 31, 2003, the composition of the Company's consolidated debt, as regards interest rates is 63% fixed rate and 37% floating rate. This combination ensures an average debt interest rate of 4.7 % in US dollars.

In 2003 current liabilities rose by Ch$ 8,179 million with regard to 2002, principally as a result of an increase in the unpaid dividends item.

Long-term liabilities are liabilities with our subsidiary CMPC Cartulinas S.A. and show almost no change on the previous year.

Equity increased by Ch$ 97,616 million chiefly due to profits for 2003, in addition to the acknowledgement of forest revaluation in subsidiaries net of charges reflecting the fall in value due to harvested, and after deduction of dividend payments in the current period.

4. CASH FLOW ANALYSIS

4.1. Consolidated Cash flow Analysis

Consolidated liquid financial investments and cash amount to Ch$ 222,556 million as of December 31, 2003 (Ch$ 143,082 million as of December 31, 2002).

Consolidated operating activities generated positive operational cash flows of Ch$ 250,088 million in 2003 (Ch$ 183,876 million in 2002).

Consolidated investment activities generated net negative flows (net use of funds) of Ch$ 194,665 million in 2003 (Ch$ 106,270 million in 2002). These flows are due to investment in fixed assets which totalled Ch$ 195,332 million in 2003 (Ch$ 112,113 million in 2002). Investment funds were principally directed towards the purchase of Forestal y Agrícola Monte Águila S.A. and Forestal Coihueco S.A., and towards increasing capacity at our Pacifico chemical pulp Mill.

Positive net consolidated financing flows for 2003 represent a net generation of funds to the value of Ch$ 60,020 million (in 2002 this flow was a net use of funds amounting to $ 14,831 million), owing to a US$ 300 million bond emission in the United States, the pre-payment of a debt for US$ 125 million and the relevant amortization for the business year.

4.2. Analysis of CMPC's Individual Cash Flow.

As mentioned above, forestry, trade, industrial and the main financial operations of the company are carried out through subsidiaries, therefore any informative analysis must focus on the consolidated financial statements. However, individual cash flow for the period to December 31, 2003, and 2002 of Empresas CMPC S.A. is shown below.

In the current period Empresas CMPC S.A.'s operating activities generated negative flows worth Ch$ 10,638 million (negative flows of Ch$ 16,764 million in 2002).

Parent company investment activities recorded positive flows worth Ch$ 46,163 million in 2003 (Ch$ 40,446 million in 2002), mainly from loan repayment by related companies net of fund use to acquire Forestal y Agrícola Monte Águila S.A. and Forestal Coihueco S.A.

Parent company financing activities generated negative flows worth Ch$ 35,678 million in 2003, (Ch$ 23,643 million in 2002), chiefly as a result of dividend payments (Ch$ 36,171 million in 2003 and Ch$ 23,346 million in 2002).

Final balance of cash and cash equivalents at the close of the year for Empresas CMPC S.A. amounted to Ch$ 31 million in 2003, and Ch$ 191 million in 2002.


045

Consolidated Current Ratio (times)

1999 2000 2001 2002 2003

Consolidated Net Flow of Operation (millions of Chilean Pesos)

1999 2000 2001 2002 2003

223,

220

198,

101

182,

055

196,

306

171,

402

3.10

2.30

2.07

1.80

2.20

Consolidated Capital Debt Ratio (times)

1999 2000 2001 2002 2003

0.370.

390.400.

42

0.46

EMPRESASCMPC S.A.

FORESTAL MININCO S.A.

99,99%

In Chile Abroad

INVERSIONESCMPC S.A.

99,99%

0,01%

CMPC TISSUE S.A.INVERSIONES PROTISA S.A.

COMERCIAL HIGIENE INTEGRAL S.A.

99,9%

0,1%

99,99%

99,99%

50%

SOREPA S.A.

0,01%

0,01%

50%

0,1%

CMPC PAPELES S.A.

EDIPAC S.A.

INFORSA

CRECEX S.A.

PAPELES CORDILLERA S.A.

CARTULINAS CMPC S.A.

99,9%

99,9%

99,99%

99,9%

0,1%

0,01%

0,1%

CMPC PRODUCTOSDE PAPEL S.A.

ENVASES ROBLE ALTO LTDA.

ENVASES IMPRESOS S.A.

PROPA S.A.

AUSTRAL S.A.

CHIMOLSA

99,9%

99,9%0,1%

99,9%

0,1%

0,1%

99,9%

0,1%

0,1%

99,95%

0,05%

CMPCCELULOSA S.A.

ABASTECIMIENTOSCMPC S.A.

PORTUARIA CMPC S.A.

PROPA CAYMAN LTD.100%

100%

99,9% FORSAC PERÚ S.A.(PERÚ)

17,11%

100%

LA PAPELERA DEL PLATA S.A. (ARGENTINA)

CMPC INVERSIONES DE ARGENTINA S.A.

TISSUE CAYMAN LTD.100%

100% 100% FORESTAL BOSQUES DEL PLATA S.A.

82,88%

PROTISA DO BRASIL LTDA.99,6% 0,4%

100% INVERSIONES CMPC CAYMAN LTD.

CMPC INVESTMENTS LTD.(CHANNEL ISLAND)

100%

100%

CMPC EUROPE LTD.(INGLATERRA)

CMPC ASIA LTD.(JAPÓN)

99,61%

97,06%

IPUSA(URUGUAY)

PAPELERA DEL RÍMAC S.A.(PERÚ)

100% PROTISA(PERÚ)

100%

100%

0,1%

2,94%

100%

FABI BOLSAS INDUSTRIALES S.A.

(ARGENTINA)

COMPAÑÍA PRIMUS DEL URUGUAY S.A.

CELULOSAS DEL URUGUAY S.A.

GESTUM INVERSIONES SL.(ESPAÑA)

CMPC USA INC.99%

93,48%

0,08%

6,44%

4

NASCHEL S.A.(ARGENTINA)

Ownership Structure

EMPRESAS CMPC S.A.

INVERSIONES CMPC S.A.

INMOBILIARIA PINARES S.A.

Symbology

CMPC CELULOSA S.A.

BICECORP S.A.8,57%

INVERSIONESEL RAULÍ S.A.

38,77%

MELOCOTÓN LTDA.25,0%

INMOBILIARIAPINARES S.A.

99,99%

FORESTAL Y AGRÍCOLA

MONTE ÁGUILA S.A.99,75%

FORESTAL COIHUECO S.A.

99,999%0,001%

5

0,01%

99,9%

99,9% 0,1%

81,95%

99,999%

0,001%5

33,34%

20%

20%

20%

20%

433,33%

CMPCMADERAS S.A.

CONTROLADORADE PLAGAS

FORESTALES S.A.

SEFORE LTDA.

20%

33,33%

13,774%

10,66%

86,226%

97,5%

18,35%

1%

4


4

5

2,5%


CMPC Tissue S.A.

CMPC Papeles S.A.

CMPC Celulosa S.A.

CMPC Forestal

6

CMPC TISSUE S.A.6

General Information

049

CmpcS.A.

Empresas

A n n u a l R e p o r t 2 0 0 3

050General Information

051

EQUITY

The Company's equity as of December 31, 2003, after annual restatement as provided by the law, amounts to ThCh$ 96,545,754 divided into 200 million shares.

EMPRESAS CMPC S.A.'s net worth as of December 31, 2003 amounts to ThCh$ 2,008,916,448.

OWNERSHIP OF THE SHARES ISSUED

In compliance with General Rule N° 30 issued by the Securities and Insurance Authority, we list the twelve largest shareholders, displaying the number of shares owned by each as of December 31, 2003.

Name Shares

Forestal Cominco S.A. 39,254,440

Forestal Constructora y Comercial del Pacífico Sur S.A. 38,432,339

Forestal O'Higgins S.A. 13,976,744

AFP Provida S.A. for Pension Funds 12,752,308

Forestal Bureo S.A. 8,068,615

AFP Habitat S.A. for Pension Funds 6,990,068

AFP Cuprum S.A. for Pension Funds 4,613,859

Inmobiliaria Ñague S.A. 4,145,628

AFP Summa Bansander S.A. for Pension Funds 4,037,757

AFP Santa María S.A. for Pension Funds 3,873,626

Coindustria Ltda. 3,577,021

Constructora Santa Marta Ltda. 3,309,907

The number and ownership of shares in Empresas CMPC S.A. belonging to companies that directly or through some type of relationship between them control 55.44% of the equity with full voting rights, is detailed below.

Name Shares

Forestal Cominco S.A. 39,254,440

Forestal Constructora y Comercial del Pacífico Sur S.A. 38,432,339

Forestal O'Higgins S.A. 13,976,744

Forestal Bureo S.A. 8,068,615

Inmobiliaria Ñague S.A. 4,145,628

Coindustria Ltda. 3,577,021

Forestal y Minera Ebro Ltda. 795,534

Forestal y Minera Volga Ltda. 712,069

Inmobiliaria y Forestal Chigualoco S.A. 523,112

Forestal Peumo S.A. 414,930

Forestal Calle Las Agustinas S.A. 311,792

Forestal Choapa S.A. 188,222

Others 480,780

All the shareholders listed above belong to a same corporate group, but do not have a formal joint action agreement.

Final controllers are the following natural persons: Mr. Eliodoro Matte L., Identity Nº 4,436,502-2, Mrs. Patricia Matte L., Identity Nº 4,333,299-6, and Mr. Bernardo Matte L., Identity Nº 6,598,728-7.

Control of the above-mentioned companies is shared equally by the final controllers.

SHARE TRANSACTIONS

The Company's share transactions by related shareholders in 2002 were as follows:

Majority Shareholders Number of Shares Unit Price AmountPurchase/(Sale) Ch$ Th$

Forestal y Constructora del Pacífico Sur S.A. 274,748 a) 6,193.30 1,701,597

Inversiones Industriales Colina S.A. (41,034) 8,424.00 345,670

Director

Manuel Mardones Restat (5,292) 6,700.00 35,456

Relatives of a Director:

Antonio Berguecio González 190 6,950.00 1,321

Carlos José Marín Correa (106,000) 11,050.00 1,171,300

Eliodoro Matte Capdevila (1,500) 6,970.00 10,455

Guillermo Marín Correa (123,361) 11,050.00 1,363,139

Jorge Matte Capdevila (1,600) 10,901.00 17,442

M. Josefina Marín Correa (108,547) 11,050.00 1,199,444

M. Loreto Marín Correa (123,361) 11,050.00 1,363,139

Marta Marín Correa (136,907) 11,050.00 1,512,822

Macarena Berguecio González 190 6,950.00 1,321

Matilde Correa de González (572) 6,950.00 3,975

Pilar Capdevila Honorato (1,100) 8,600.00 9,460

Vicente Berguecio González 192 6,950.00 1,334

Some relationship to a Director:

Compañía de Rentas Epulafquen Limitada 3,000 6,850.00 20,550

Inversiones Amolanas Limitada 11,298 6,695.26 75,643

Rentas Las Rocas Limitada 108,547 11,050.00 1,199,444

Rentas Kiev 136,907 11,050.00 1,512,822

Rentas Padua 123,361 11,050.00 1,363,139

Rentas San Ramón 123,361 11,050.00 1,363,139

Sociedad Civil Rentas Santa Blanca 106,000 11,050.00 1,171,300

Notes:

a) Shares acquired only as a financial investment

b) In 2002 only Mr. Eliodoro Matte Capdevila and Mr. Jorge Matte Capdevila sold 1,500 and 1,400 shares respectively.


053

QUARTERLY STATISTICS OF SHARE TRANSACTIONS

Quarter Units Amount Average PriceCh$ Ch$

1st Quarter 2001 1,592,005 8,077,256,966 5,073,64

2nd Quarter 2001 3,346,098 16,988,568,032 5,077,13

3rd Quarter 2001 3,208,435 17,284,785,849 5,387,30

4th Quarter 2001 3,411,502 20,097,251,877 5,891,03

1st Quarter 2002 2,756,626 17,203,531,899 6,240,79

2nd Quarter 2002 1,289,668 8,329,916,411 6,458,96

3rd Quarter 2002 3,140,888 20,933,818,200 6,664,94

4th Quarter 2002 3,270,675 20,400,980,033 6,237,54

1st Quarter 2003 2,983,658 19,216,931,903 6,440,73

2nd Quarter 2003 3,956,835 29,585,049,495 7,476,95

3rd Quarter 2003 3,536,218 34,071,376,073 9,634,98

4th Quarter 2003 4,678,243 51,803,839,115 11,073,35

Note:

Statistics include information from the Santiago Stock Exchange, the Electronic Exchange of Chile and the Brokers' Exchange.

REMUNERATION AND EXPENSES OF THE BOARD AND COMMITTEE OF DIRECTORS, AND MANAGEMENT REMUNERATION

Under the provisions of Law 18,046, the Annual General Meeting of Shareholders of Empresas CMPC S.A. held on April 25 2003 agreed, as they did the previous year, that the remuneration of the Board of Directors shall be 1% of the regular dividends paid during the year 2003, duly restated, shared out equally among them, with the Chairman entitled to a double share.

As of December 31, 2003, a provision of ThCh$ 362,323 was set up for this purpose, corresponding to 1% of the dividends paid during the period.

The Board of Directors' share for the year 2002 amounted to ThCh$ 227,963 (historical), and was paid during the first half of 2003, of which ThCh$ 45,407 were paid to the Chairman, Mr. Eliodoro Matte, and ThCh$ 28,495 to each of the Directors: Messrs. Patricio Grez, Jorge Marín, Jorge G. Larraín, Manuel Mardones and Bernardo Matte.

Furthermore, Mr. Eliodoro Matte received ThCh$ 62,290 (ThCh$ 61,194 in 2002) for services unrelated to his work as a Director.

On the other hand, remuneration paid by subsidiaries during 2003 to Directors who also sit on the parent company board amounted to ThCh$ 215,793 (Th$ 222,891 in 2002), and were paid to the following directors: Messrs. Ernesto Ayala Th$ 28,459 (Th$ 38,264 in 2002), Eliodoro Matte Th $ 72,328 (Th$ 70,836 in 2002), Bernardo Matte Th$ 58,107 (Th$ 56,918 in 2002), Jorge G. Larraín Th$ 28,459 (Th$ 29,034 in 2002), Manuel Mardones Th$ 14,222 (Th$ 13,919 in 2002) and Patricio Grez Th$ 14,218 (Th$ 13,920 in 2002).

The Committee of Directors established under Law 18,046 complies with the authority and duties established in Article 50 Bis of said Law. The Committee of Directors is made up of Messrs. Ernesto Ayala, Patricio Grez, and Jorge Marin, and the fees paid to the members of said Committee amount to ThCh$ 2,027 each. No other expenses have been recorded during the period.

The expenses of the Board of Directors for 2002 only include travel expenses and amount to ThCh$ 5,764 (Th$ 4,142 in 2002).

Total gross remuneration received by the Company's Managers amounts to ThCh$ 1,506,683 in 2003 (ThCh$ 1,113,893 in 2002).

The executive staff has an incentive plan consisting of an annual bonus whose size depends on profits and on meeting the Company's operational budget. The amount of this variable component of remuneration is included in the above figure.

During 2003 staff severance indemnities for years of service to senior executives amounted to Th$ 64,605. No such payments were made in 2002.

FINANCIAL STATEMENTS

EMPRESAS CMPC S.A.'s Financial Statements for the year to December 31, 2003 are submitted to shareholders and have been prepared according to the Rules issued by the Securities and Insurance Authority. These require the inclusion of the proportion corresponding to EMPRESAS CMPC S.A. of the assets and profit/loss of related companies at the close of the current period in the assets and profit/loss statement of EMPRESAS CMPC S.A. These Financial Statements show a net profit of ThCh$ 124,603,846 which may be entirely distributed as dividends, and includes amortization for the higher value of investments in related companies for ThCh$ 1,728,382 as per Note N°13 to the Consolidated Financial Statements.

DISTRIBUTION OF PROFITS

In accordance with General Rule Nº 30, issued by the Securities and Insurance Authority, the dividends paid per share in the last five years is shown below:

Year 1999 Ch$ 25,00 per share





As agreed in the Annual General Meeting of Shareholders held on April 25, 2003, the Company paid final dividend N° 227 of Ch$ 56 per share in May 2003, debited to profits for the year 2002.

The dividend policy agreed by the Annual General Meeting of Shareholders mentioned above, consisted of the payment of two provisional dividends in September 2003 and January 2004, with the final dividend to be determined by the Meeting of Shareholders and paid in May 2004, such that total dividend payments amount to 40% of 2003 profits. On the 4th of December 2003 the Board decided to pay provisional dividend N° 229 of $80 per share, debited to profits for 2003 and paid on the 8th of January 2004

According to the legal provisions in force, the Shareholders' Meeting must determine how the profits for the period are to be distributed and dividends allocated.

PERSONNEL

As of December 31, 2003, the company's personnel amounted to 8,573 people, divided as follows:

Company Manager and Professionals Workers TotalMain Executives and Technicians

Forestal Mininco S.A. 44 366 848 1,258

CMPC Celulosa S.A. 58 343 818 1,219

CMPC Papeles S.A. 43 477 1,125 1,645

CMPC Tissue S.A. 62 564 1,902 2,528

CMPC Productos de Papel S.A. 44 270 1,414 1,728

Empresas CMPC S.A. 8 97 90 195

Totals 259 2,117 6,197 8,573

RELEVANT FACTS

a. The CMPC Board decided at an extraordinary session on the 27th of February 2003 to buy 80,542,993 Forestal y Agricola Monte Aguila S.A shares from Compañía Shell Forestal Limitada. Of these shares, 64,731,940 belonged to Shell Forestal Ltda. and 15,811,053 to Enex S.A., together making up 99.75% of the share capital of Monte Aguila S.A. and of the debts Monte Aguila S.A. had with regard to Shell Forestal Ltda at the date of the purchase.

The price paid for the aforementioned shares and loans amounted to US$ 100 millon.

b. Empresas CMPC S.A. has become guarantor to and co-debtor of its subsidiary "Inversiones CMPC S.A." of the Cayman Islands as a result of the latter's bond emission in the United States of America.

The emission was for a total of US$ 300,000,000, payable in 10 years at 4.875 % per annum. The principal is payable at the end of the ten year period, while the interest is payable every semester.

This capital was used in part to pay off debts accrued by our subsidiaries, while the remainder will be used for future investments.


055

DENDORSEMENT OF THE ANNUAL REPORT

The Directors and the Chief Executive Officer of EMPRESAS CMPC S.A. listed below declare themselves liable regarding the truth of all the information included in this Annual Report, and sign hereafter.

ELIODORO MATTE LARRAÍNChairman

R.U.T. 4.436.502-2

ERNESTO AYALA OLIVA PATRICIO GREZ MATTEDirector Director

R.U.T. 487.554-0 R.U.T. 1.854.776-7

MANUEL MARDONES RESTAT JORGE G. LARRAÍN BUNSTERDirector Director

R.U.T. 1.468.225-2 R.U.T. 4.102.581-6

JORGE E. MARÍN CORREA BERNARDO MATTE LARRAÍNDirector Director

R.U.T. 7.639.707-4 R.U.T. 6.598.728-7

ARTURO MACKENNA IÑIGUEZChief Executive Officer

R.U.T. 4.523.287-5

Consolidated Financial Statements

057

CmpcS.A.

Empresas

A n n u a l R e p o r t 2 0 0 3

058 Consolidated Balance Sheet060 Consolidated Statement of Income061 Consolidated Statement of Cash Flows 063 Notes to the Consolidated Financial Statements111 Report of Independent Accountants

December 31, 2003 and 2002 (Translation of the original in Spanish)

Ch$ Chilean pesosThCh$ Thousands of Chilean pesos

US$ United States dollars ThUS$ Thousands of United States dollars

UR$ Uruguayan pesosPS$ Peruvian Soles

J¥ Japanese yens SKr Swedish crowns DM Deutsche marks

Ptas. Spanish pesetas A$ Argentinean pesos UF The Unidad de Fomento is a Chilean inflation index-linked, peso-denominated unit, set

daily in advance on the basis of the previous month's inflation rate.

112

Overseas Representatives

113

CMPC FORESTAL

BeneluxKoninklijke Eduard Van Leer B.V.Jodenbreestraat 152-1541011 NS AmsterdamHolland, Belgium, LuxemburgTel. : (31-20) 622 2324Fax : (31-20) 624 4500Tlx. : 11267 LEEMr. Goderd H. GraaflandMr. Martin S. Den Butter

CMPC Asia LimitedToto Bldg. 6F -5-1-4,Toranomon - Minato-ku,Tokyo 105-0001 JapanTel. : (81-3) 5733 2570Fax : (81-3) 3432 3005Mr. Patricio Arenas

JapanSakin CorporationToto Bldg. 6F-5-1-4,Toranomon - Minato-ku,Tokyo 105-0001 JapanTel. : (81-3) 5733 2570Fax : (81-3) 3432 3005Mr. Kenji Hatogai SatoMr. Yoichi (Nick) Nishida

KoreaDupoong Corporation287, 11, Yangjae-DongSocho-Ku SeoulKorea 137-130Tel. : (822) 575 6761-4Fax : (822) 577 4963-4Mr. S.H. Ahn

Middle East United AgenciesP.O. Box 2212DubaiUnited Arab Emirates, Oman, Qatar, KuwaitTel. : (971-4) 332 2443Fax : (971-4) 332 2553Tlx. : 45587 UNAGN EMwww.uadubai.comMr. Vijay Nihalani

MexicoComiexport S.A. de C.V.Chichen Itza Nº 4955Colonia Mirador del Sol,Zapopan, JaliscoMexicoTel. : (52-3) 628 9780Fax : (52-3) 125 0379Mr. Pedro Arellano

North AfricaSherik Exp & Imp4, Adib StreetAlexandriaEgyptTel. : (203) 597 2896Fax : (203) 597 1463 /

38514650639Mr. Murat Pasic

SpainRamón Zarandona GarcíaEliz Atea 8 - 2º A48280 Lekeitio Bizcaia SpainTel. : (34-94) 684 0007Fax : (34-94) 684 3189Mr. Ramon Zarandona Garcia

TaiwanCOPC International (Asia) Ltd.22F-1, 447, Sec 3, Win Hsin Road, Taichung, Taiwan, R.O.CTaiwanTel. : (886-4) 2296 8736Fax : (886-4) 2296 8430 /

2297 9620Mr. Peter Chang

United KingdomPrice& Pierce Softwoods LimitedCavendish House, 40 Goldsworth Road,Woking Surrey GU21 1JTEnglandTel. : (44 1483) 221 800Fax : (44 1483) 726 203Mr. Stephen Pitt

CMPC CELULOSA S.A.

CMPC Europe Limited5 Dukes GateActon Lane London W4 5DXTel. : (44-20) 899 69960Fax : (44-20) 899 69967

ArgentinaProductos Forestales S.A.PROFORSALaprida 3278 piso 2, of. 431642 San Isidro, Buenos AiresTel. : (54-11) 4735 2733Fax : (54-11) 4735 2740

AustraliaSilvania Resources, Inc.1820 N. Corporate Lakes Blvd.Suite 307Weston, Florida 33326USATel. : (1-954) 385 4890Fax : (1-425) 944 1836

AustriaGUSCO Handel - G. Schürfeld & Co.Mönckebergstrasse 31D-20095 HamburgGermanyTel. : (49-40) 333 040Fax : (49-40) 333 04100

Benelux Countries Koninklijke Eduard Van Leer B.V.Jodenbreestraat 152 -1541011 NS AmsterdamHollandTel. : (31-20) 622 2324Fax : (31-20) 622 7558

Euro Fibres S.A.18 Avenue LavoisierB-1300 WavreBelgiumTel. : (32-10) 23 74 50Fax : (32-10) 23 74 52

BoliviaHein Ltda.Avda. Arce 2396La Paz Tel. : (591-2) 244 2786

244 0945Fax : (591-2) 244 1188

BrazilClaudio Maresca, RepresentanteRua Itapicuru 369 - piso 10Conj. 1003, Perdizes05006 -000 Sao Paulo - SPTel. : (55-11) 3864 1119Fax : (55-11) 3675 7519

ChinaChina International Tourism & Trade Co., Ltd.(CITTC)2F International Convention CenterN° 8 Beichendonglu Beijing 100101Tel. : (86-10) 8497 3322Fax : (86-10) 8497 3339

CellMark AB, Shanghai OfficeRoom 1901, 205 South Mao Ming RoadRui Jin BuildingShanghai 200020Tel. : (86-21) 6473 0266Fax : (86-21) 6473 0030

ColombiaHerzig & Cía. S.A.Carrera 50 N 6-41MedellínTel. : (57-4) 255 2122Fax : (57-4) 285 5805

Eastem EuropeW. Heinzel A.G.Wagramer Strasse 28-30Viena A-1223AustriaTel. : (43-1) 260-110Fax : (43-1) 263 6363

EcuadorAlter Cia Ltda.Almagro 1550 y PraderaEdificio P.A. Kingman, piso 4BQuitoTel. : (593-2) 290 5531Fax : (593-2) 256 4571

FranceLarsen & Danglade72, Rue La Boetie75008 ParisTel. : (33-1) 565 97799Fax : (33-1) 422 59725

GermanyGUSCO Handel - G. Schürfeld & Co.Mönckebergstrasse 31D-20095 HamburgTel. : (49-40) 333 040Fax : (49-40) 333 04100

IndiaCellMark India Pvt. Ltd.3rd Floor, Mustafa Bldg.7 Sir P.M. RoadMumbai 400 001Tel. : (91-22) 2266 1912Fax : (91-22) 2266 1914

IndonesiaCellMark Interindo Trade Pt.JI. Raya Jatiwaringin N° 54Pondok, Gede17411 JakartaTel. : (62-21) 848 0130Fax : (62-21) 848 0140

ItalyGei & Heidenreich S.R.L.Piazza Castello 2020121 MilanTel. : (39-02) 801 137Fax : (39-02) 862 874

W. Pauly & C. S.r.l.Via Vittor Pisani 520124 MilanTel. : (39-02) 670 78028Fax : (39-02) 6697 159

JapanHirom CorporationToto Bldg. 6th. Fl.5-1-4 Toranomon Minato-kuTokyo 105-0001Tel. : (81-3) 5733 5893Fax : (81-3) 5733 5894

KoreaHeungbo Industrial Co., Ltd.10th Fl.CCMM Bldg., 12 Yoido-DongYoungdungpo-GuSeoul, 150-010Tel. : (82-2) 783 7400 Fax : (82-2) 783 7401

MexicoPaxell International S.A. de CV.Fuente de Pirámides N° 1-506Tecamachalco Mex.53950 MexicoTel. : (52-55) 293 1403Fax : (52-55) 293 1377

PeruInunsa S.A.Av. Mariategui # 218Lima 11Tel. : (51-1) 471 8990Fax : (51-1) 470 6061

PortugalSanches da Gama & Cía. Lda.Rua Tomas Ribeiro, 50 5th. Floor1050-231 LisboaTel. : (351-21) 313 9260Fax : (351-21) 357 6572

South AfricaDennis C. Money Esq.c/o BimacP.O. Box 47186Parklands 2120JohannesburgTel. : (27-11) 788 1910Fax : (27-11) 788 6001

SpainNorthem Pulp Cellulose Sales S.A.Almagro 2128010 MadridTel. : (34-91) 310 1526Fax : (34-91) 319 1910

SwitzerlandGUSCO Handel - G. Schürfeld & Co.Mönckebergstrasse 31D-20095 Hamburg - GermanyTel. : (49-40) 333 040Fax : (49-40) 333 04100

TaiwanBeauflex International Corp.5 FL. No 250 Wen Lin North RoadTaipeiTel. : (886-2) 2827 1188Fax : (886-2) 2827 1177

ThailandCellMark (Thailand) Co. Ltd.2024/139-140 Rimtangrodfai RoadPrakanong, Bangkok 10250Tel. : (66-2) 333 1300Fax : (66-2) 333 1299

United KingdomF.G. Evans & Co. (Pulp) Ltd.12 Parade Court, Marlow RoadBourne EndBucks, SL8 5SFTel. : (44-16285) 30661Fax : (44-16285) 31237

USAInternational ForestProducts Corp.One Patriot PlaseFoxboro, MA 02035Tel. : (1-508) 698 4600Fax : (1-508) 698 1500

UruguayArturo Nogueira Representaciones18 de Julio 1044 piso 2, Esc. 204MontevideoTel. : (598-2) 902 0630Fax : (598-2) 902 0630

VenezuelaCellMark Pulp & Paper Inc.C/O Rero, C.A.Torre Phelps, piso 19, of. A.Plaza VenezuelaCaracas, 1010-ATel. : (58-212) 781 9501/2476Fax : (58-212) 781 5932/6976


SALES OFFICE:ArgentinaCartulinas CMPC ArgentinaIntendente Rabanal 31001437 Capital FederalBuenos AiresTel. : (54-11) 4630 0290 Fax : (54-11) 4630 [email protected]

REPRESENTATIVES:BrazilKnemitz International Ltda.Rua Borba Gato, 331 Bloco G sala 191CEP 04747-030 Alto da Boa Vista -Sao Paulo-SPTelephone/Fax : (55-11) 5522 [email protected]

MexicoFederico EscotoTamuin N° 2Col. San Jerónimo, AculcoCP 10400Mexico D.C.Tel. : (52-55) 5595 35 04 Móvil: (52-55) 21 09 09 [email protected]

PeruInunsa S.A.C.Av. Maritegui 218 Lima 11Tel. : (51-1) 471 8990 Fax : (51-1) 470 6061

(51-1) 910 [email protected]

Southeast Asia Roxcel Handelges. mbH Thurngasse 10 A - 1090 Viena AustriaTel. : (43-1) 40156201 Fax : (43-1) [email protected]

UruguayA. Nogueira RepresentacionesAv. 18 de Julio 1044, P-2, of. 204MontevideoTel. : (598-2) 901 5066 Fax : (598-2) 902 [email protected]

VenezuelaCellMark Inc.Av. Principal del BosqueEdificio Suzet Planta Baja of. 1 y 2Urbanización El BosqueCaracasTel. : (58-212) 953 8064 Fax : (58-212) 763 [email protected]

CMPC TISSUE S.A.

BoliviaProesaAv.Arce 2847,La PazTel. : (591-2) 243 0642Fax : (591-2) 241 [email protected]. Luis Roberto Urquizo

EcuadorDistribuidor Zona La CostaMaxin S.A.Mapasingue Este, calle 4ta NS 122 y Vía Daule Post Box 09-01-7013 GuayaquilTel. : (593-4) 235 2000Fax : (593-4) 235 [email protected]. Rodrigo Campos

Sierra Distribution agentIntermedia C.A. InmomediaVía a Llano s/n (Ciudadela Alegría)Post Box: 17-1106153Tel. : (593-2) 282 0760Fax : (593-2) 282 [email protected]. Juan Najas

ParaguayTrovato CISACalle Central 1340AsunciónTel : (595-21) 210 556Fax : (595-21) 214 [email protected] Ing. Marco Trovato

Ramirez Diaz de Espada Industrial y Comercial S.A.E.C.A.Raul Diaz de Espada y CurupaytyFernando de la Mora ParaguayTel. : (595-21) 518 1000Fax : (595-21) 518 [email protected]. Juan M. Pozzan

CMPC PRODUCTOS DE PAPEL S.A.

ENVASES IMPRESOS S.A. CHIMOLSA S.A.Argentina, Brazil and UruguayRaul Scialabba Soldado de la Independencia 14171426 Buenos AiresTel. : (54-1) 786 3007Fax : (54-1) 786 [email protected]

PeruImexagro S.A.C.Reinaldo Avendaño /Jorge AvendañoCalle Los Jazmines 125Urb. Valle Hermoso - SurcoLimaTel. : (51-1) 275 5002Fax : (51-1) 275 [email protected]

FABI ARGENTINA - CHIMOLSA S.A.UruguayP.R.I. y AsociadosLeyenda Patria 3012, of. 401C.P. 11300 MontevideoTel. : (5982) 711 8753

(5989) 442 8848Fax : (5982) 711 8753 [email protected]. Fernando Incerti

INDUSTRIAS FORESTALES S.A.INFORSA

ArgentinaWahren ArgentinaCorrientes 456, piso 12, of. 123C1043 AARBuenos AiresTel. : (54-11) 4322 0772Fax : (54-11) 4394 [email protected]. Gustavo [email protected]. Pedro Wahren

BoliviaHein Ltda.Avenida Arce 2396La PazTel. : (591-2) 442 786 - 440 945Fax : (591-2) 441 188Post Box de correo 1811, La [email protected]. Carlos Hein

BrazilCía. T. Janer Com. E Ind. Av. Henry Ford 811 03109-901 Sao Paulo SPTel. : (55-11) 6165 8300/8331/8395/8398Fax : (55-11) 6165 8432/ 8433, 6915 [email protected] www.tjaner.com.br Mr. Luiz Carlos Baralle

China, Hong Kong and VietnamEurocell International Ltd.4002 Central Plaza, 18 Harbour Road, Hong KongTel. : (852) 2511 2282Fax : (852) 2507 [email protected]. Louis Chan

ColombiaInversanes LimitadaCalle 31A N° 128-84Bodega N°10Santa Fe de BogotaTel. : (57-1) 413 3858-413 4065Fax : (57-1) 413 [email protected]. Juan Camilo Sandino

Dominican Republic and Puerto RicoJorge Santelli Inc.3 Westfield LaneWhite Plains, NY 10605USATel. : (914) 428 8583Fax : (914) 328 [email protected]. Jorge Santelli

EcuadorQuitoAlter Cia. Limitada. Almagro 1550 y Pradera,Edificio P.A. KingmanPiso 4 BTel. : (593-2) 290 5531Fax : (593-2) 254 [email protected]. Esteban Perez

GuayaquilJGB Representaciones Córdova 810, Esq. Victor M. RendónPiso 17, oficina 2Tel. : (593-4) 300 734Fax : (593-4) 313 [email protected]. Julio Guzman

India, Thailand and KoreaEurocell Asia Pte Ltd10 Anson Road # 15-10 International Plaza Singapore 079903Tel. : (65) 6837 2275Fax : (65) 6837 [email protected] Mr. Volker Hasemann

MexicoSOMA Comercializadora, S.A. de C.V.Insurgentes Sur 953 104-ACol. Nápoles, C.P. 03810Mexico D.F.Tel. : (52) 55 5536 6603Fax : (52) 55 5523 [email protected]. Fernando Sanchez de Ovando

ParaguayPypa S.R.L.Roque Centurión Miranda 1042 con Melvin Jones, Barrio ManoraAsunciónTelefono/Fax : (595-21) 662 [email protected]. Rodolfo Serrano

PeruKintos S.A.Jirón Juno102Urbanización La CampiñaChorrillosLima 9Tel. : (51-1) 252 3343Fax : (51-1) 467 [email protected]. Alfredo Granda

United KingdomInternational Forest Products (UK)Winchombe HouseBartholomew StreetNewbury, BerkshireRG 14 5BNTel. : (01635) 581 732Fax : (01635) 581 [email protected]. Jonathan Heywood

USAAnticosti, LLC668 Wyckoff AvenueWyckoff, New Jersey 07481Tel. : (201) 891 5454Fax : (201) 891 [email protected]. Bill Parilla

UruguayArturo Nogueira Representaciones Avda. 18 de Julio N° 1044, of. 204MontevideoTel. : (598-2) 901 5066Fax : (598-2) 902 [email protected]. Selina Nogueira

Venezuela Inversiones Catorce SRL Avda. Libertador, Edificio La Linea, Torre A, piso 1, Caracas 1050Tel. : (58-2) 793 3308Fax : (58-2) 782 3802Mr. Adan [email protected]. Dagoberto Romer

ChinaBeijingChina International Tourism & Trade Co. Ltd. (CITTC)2 F International Convention Center8 BeichendongluUbeijing 100101Tel. : (8610) 8497 3322 Fax : (8610) 6493 [email protected]

Hong KongGreat China Papers Co., Ltd.2105 MassMutual Tower, 38 Gloucester Rd., WanchaiTel. : (852) 2865 3618 Fax : (852) 2865 [email protected]

ColombiaJ.A. Guevara RepresentacionesCarrera 127 N° 9 - 45, casa #7CaliTelefono/Fax: (57-2) 555 [email protected]

Costa Rica, El Salvador and Panama Jorosa250 metros al Norte del Supersaretto Apartamento #4San JoseTel. : (506) 289 7736 Fax : (506) 289 [email protected]

EcuadorAlter y Cía. Ltda.Almagro 1550 y PraderaEdif. P.A. Kingman, piso 4BQuitoTel. : (593-2) 290 55 31 Fax : (593-2) 254 70 [email protected]

J.G.B. Representaciones (PROPAPEL)Córdova 810 y Victor M. Rendón - piso 17, of. 2GuayaquilTel. : (593-4) 2300 734 Fax : (593-4) 2313 [email protected]

EnglandPROFOR (UK) Ltd.44 Dartford RoadSevenoaks TN13 3TQKentTel. : (44-1732) 456 699 Fax : (44-1732) 743 [email protected]

European CommunityGusco Handel G. Schürfeld + Co.Mönckebergstrasse 3120095 HamburgTel. : (49-40) 333040 Fax : (49-40) [email protected]

GuatemalaCellMark Inc.50 Avda. B 0-46Zona 11, Molino de Las FloresCiudad de GuatemalaTel. : (50-2) 431 20 92 Fax : (50-2) 438 04 [email protected]

Overseas Representatives

In Chile Abroad

ABN AMRO ABN AMRO Bank

Banco BICE Banca Commerciale Italiana

Banco Crédito e Inversiones Banca Natzionale del Lavoro

Banco de Chile Banco Bilbao Vizcaya Argentaria

Banco Santander - Santiago Banco Central Hispanoamericano

Banco Security Banco de Crédito del Perú

BancoEstado Banco de Galicia y Buenos Aires

BankBoston Banco Santander Central Hispano

BBVA Bank of America

Citibank BankBoston

Corpbanca Barclays Bank

Deutsche Bank Chile Bayerische Landesbank

Dresdner Bank Lateinamerika BNP Paribas

HSBC Bank USA Brown Brothers Harriman

JP Morgan Chase Bank Caja Madrid

Scotiabank Sud Americano Citibank

Credit Lyonnais

DEG Deutsche Investitions und Entwicklungsgesellschaft

Deutsche Bank

Dresdner Bank

Export Development Canada

Goldman Sachs

HSBC Bank

ING Bank

JPMorgan Chase Bank

Landesbank Schleswig-Holstein International

Mizuho Corporate Bank

Morgan Stanley Dean Witter

N.M. Rothschild & Sons

Nordea Bank

Rabobank

Royal Bank of Canada

Sanpaolo IMI

Société Générale

The Bank of Nova Scotia

The Bank of Tokyo-Mitsubishi

The Fuji Bank

UBS Warburg

General InformationBankers

EMPRESAS CMPC S.A.

Chilean Public Liability Company incorporated by public deed on February 5, 1920.

Authorized by Supreme Decree Nº 589 of March 12, 1920. Listed in the Trade Registry for 1920 on page 366 Nº 208. Listed with the Registry of Securities on March 31, 1982 under Nº 0115.

OFFICES:

General ManagementAgustinas 1343, P. 9Tel. : 56 (2) 441 2000Fax : 56 (2) 671 1957Telex 240530 PAPEL CLPost Code 6500587Post Box 297, Correo CentralSantiagoR.U.T. 90.222.000-3

Share RegistryAgustinas 1343, EntrepisoTel. : 56 (2) 441 2000Fax : 56 (2) 697 0539Post Code 6500587Post Box 297, Correo CentralSantiago

INVERSIONES CMPC S.A.Agustinas 1343Tel. : 56 (2) 441 2000Fax : 56 (2) 671 0621Telex 240530 PAPEL CLPost Box 297, Correo CentralSantiago

SUBSIDIARIES IN CHILE


General Management Los Canelos 79, San Pedro de la PazTel. : 56 (41) 503 300Fax : 56 (41) 373 431Post Box [email protected]ón

Agustinas 1343, P. 4Tel. : 56 (2) 441 2000Fax : 56 (2) 672 9054Post Box 297, Correo CentralSantiago

Avenida Alemania 751Tel. : 56 (43) 405 300Fax : 56 (43) 312 701Post Box 399Los Ángeles

Avda. Rudecindo Ortega 02351Tel. : 56 (45) 730 400Fax : 56 (45) 408 099Temuco

9 1/2 Oriente 1482Tel. : 56 (71) 225 180Fax : 56 (71) 225 180Talca

CMPC MADERAS S.A.

General ManagementAgustinas 1343, P. 4Tel. : 56 (2) 441 2000Fax : 56 (2) 696 8833

696 5437Post Box 297, Correo [email protected]@cmpc.clSantiago

Head OfficeAvda. Alemania 751Tel. : 56 (43) 405 500Fax : 56 (43) 312 750Post Box 30 - DLos Ángeles

Remanufacturing MillPanamericana Sur Km. 494 s/n (1 Km. interior cruce La Mona)Tel. : 56 (43) 405 520

321 977Fax : 56 (43) 323 372Post Box 30 - DLos Ángeles

Mulchén MillPanamericana Sur Km. 540 s/nTel. : 56 (43) 405 540

561 371Fax : 56 (43) 561 225Post Box 152Mulchén

Bucalemu MillPanamericana Sur Km. 471(1,5 Km Camino Laja)Tel. : 56 (43) 405 530

431 156Fax : 56 (43) 431 156Cabrero

Nacimiento MillRecinto Industrial s/nTel. : 56 (43) 405 550 Tel./Fax : 56 (43) 511 460Fax : 56 (43) 511 374 Post Box 1799Nacimiento

INMOBILIARIA PINARES S.A.Avda. Alemania 751Tel. : 56 (43) 405 500Fax : 56 (43) 312 750Post Box 30 - DLos Ángeles

SERVICIOS FORESTALES ESCUADRÓN LTDA.Avda. Alemania 751Tel. : 56 (43) 405 370Fax : 56 (43) 349 245Post Box 24 - DLos Ángeles

FORESTAL COIHUECO S.A.Agustinas 1343, P. 4Tel. : 56 (2) 441 2000 Fax : 56 (2) 672 9054Post Box 297, Correo CentralSantiago

FORESTAL Y AGRÍCOLA MONTE ÁGUILA S.A.

General ManagementAv. Francisco Encina s/n, PaillihueTel. : 56 (43) 631 000 Fax : 56 (43) 320 497Post Box [email protected] Ángeles

Hacienda RucamanquiRucamanqui s/nTel./Fax : 56 (43) 404 709

56 (43) 404 773Tucapel

Coronel MillAv. Costanera s/n, SchwagerTel. : 56 (41) 711 026 Fax : 56 (43) 711 275Post Box 136Coronel

CMPC CELULOSA S.A.

General Management Agustinas 1343, P. 3Tel. : 56 (2) 441 2030Fax : 56 (2) 698 2179Post Box 297, Correo [email protected]@celulosa.cmpc.clSantiago

Pacifico MillAv. Jorge Alessandri 001Mininco, Comuna CollipulliTel. : 56 (45) 293 300Fax : 56 (45) 293 305Post Box 11 - DAngol

Laja MillBalmaceda 30Tel. : 56 (43) 334 000Fax : 56 (43) 334 015Post Box 108Laja

Santa Fe MillAv. Julio Hemmelmann 670Tel. : 56 (43) 403 800Fax : 56 (43) 403 830Post Box 1797Nacimiento

CMPC PAPELES S.A.Agustinas 1343, P. 5Tel. : 56 (2) 441 2000Fax : 56 (2) 695 5290Post Box 297, Correo CentralPost Code [email protected]


General ManagementAgustinas 1343, P. 5Tel. : 56 (2) 441 2020Fax : 56 (2) 672 3450Post Code [email protected]

Valdivia MillAv. Jose Manuel Balmaceda 8500Tel. : 56 (63) 214 791Fax : 56 (63) 216 976Post Box 5 - DValdivia

Maule Mill Ruta L-25, 28500 Yerbas Buenas Tel. : 56 (71) 237 631

56 ( 2) 440 3000Fax : 56 (71) 237 633

56 ( 2) 440 3004Post Box 119 - TalcaLinares

Puente Alto Dispatch WarehouseEyzaguirre 01098Tel. : 56 (2) 367 5400Fax : 56 (2) 850 1118Post Box 23Puente Alto, Santiago

Talcahuano Dispatch WarehouseJuan Antonio Ríos 185 interiorTel. : 56 (41) 544 524

542 241Talcahuano

San Antonio Dispatch WarehouseHijuela 1-B Ruta 78Cruce CartagenaTel. : 56 (35) 201 541

201 542San Antonio

PAPELES CORDILLERA S.A.Eyzaguirre 01098Tel. : 56 (2) 367 5700Fax : 56 (2) 850 1118Post Box 23Puente Alto, Santiago

INDUSTRIAS FORESTALES S.A. INFORSA

General ManagementAgustinas 1357, P. 9Tel. : 56 (2) 441 2050Fax : 56 (2) 441 2890Post Box 9201, Correo [email protected]

MillAv. Julio Hemmelmann 330Tel. : 56 (43) 631 300Fax : 56 (43) 511 444Post Box 1791Nacimiento

FORESTAL CRECEX S.A.Agustinas 1357, P. 9Tel. : 56 (2) 441 2050Fax : 56 (2) 441 2890Santiago

EMPRESA DISTRIBUIDORA DE PAPELES Y CARTONES S.A. EDIPACJose Ananías 207Tel. : 56 (2) 375 2400Fax : 56 (2) 375 [email protected], Santiago

Copiapó 1039Tel./Fax : 56 (2) 222 1544Santiago

Limache 4627Tel. : 56 (32) 676 025Fax : 56 (32) 676 167Viña del Mar

Paicaví 3025Tel./Fax : 56 (41) 480 490Concepción

Avda. Rudecindo Ortega 02305Tel. : 56 (45) 220 473Fax : 56 (45) 221 267Temuco

SOCIEDAD RECUPERADORA DE PAPEL S.A. SOREPA

General ManagementVenecia 3200Tel. : 56 (2) 473 7000Fax : 56 (2) 473 7042Post Box [email protected] Joaquin, Santiago

Pudahuel Mill Camino Renca Lampa, Parcela 3Parcelación El BosqueTel. : 56 (2) 601 9340Fax : 56 (2) 601 9331Pudahuel, Santiago

CMPC TISSUE S.A

General ManagementAgustinas 1343, P. 6Tel. : 56 (2) 441 2000Fax : 56 (2) 623 [email protected]

Tissue Chile Management Puente Alto Mill Eyzaguirre 01098Tel. : 56 (2) 366 6400Fax : 56 (2) 364 1713Puente Alto, Santiago

Talagante Mill Camino a Isla de Maipo 0297Tel. : 56 (2) 815 2020Fax : 56 (2) 815 4551Talagante

INVERSIONES PROTISA S.A.Agustinas 1343Tel. : 56 (2) 441 2000Fax : 56 (2) 623 8539Santiago

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General Information

CMPC PRODUCTOS DE PAPEL S.A.Agustinas 1343, P. 6Tel. : 56 (2) 441 2000Fax : 56 (2) 698 1990Post Box 297Santiago

CHILENA DE MOLDEADOS S.A. CHIMOLSAJose Luis Coo 01162Tel. : 56 (2) 360 0401Fax : 56 (2) 850 3110Post Code 7710568Post Box 208, Puente [email protected]

PROPA S.A.

Management & SalesHuerfanos 1376, P. 9Tel. : 56 (2) 441 2161Fax : 56 (2) 698 1990Post Box 2413, Correo [email protected]

MillLongitudinal Norte Km.3 s/nTel. : 56 (42) 272 405Fax : 56 (42) 271 958Chillán

PRODUCTOS AUSTRAL S.A.Avda. Zañartu 1049Tel. : 56 (2) 375 2222Fax : 56 (2) 375 2100Post Box 3113, Correo [email protected]Ñuñoa, Santiago

ENVASES IMPRESOS S.A.

Management & MillCamino Alto Jahuel 0360Tel. : 56 (2) 471 1300Fax : 56 (2) 821 5988Buin, Santiago

ENVASES ROBLE ALTO LTDA.

Management & SalesLo Echevers 221Tel. : 56 (2) 444 2400Fax : 56 (2) 444 [email protected], Santiago

Quilicura Mill Ojos del Salado 0711Tel. : 56 (2) 444 2400Fax : 56 (2) 444 2453Quilicura, Santiago

Til Til Mill Camino Cerro Blanco de Polpaico 100Tel. : 56 (2) 846 6060Fax : 56 (2) 846 6120

ABASTECIMIENTOS CMPC S.A.Agustinas 1343 - EntrepisoTel. : 56 (2) 441 2000Fax : 56 (2) 672 [email protected]

PORTUARIA CMPC S.A.Alcalde René Mendoza 190 LirquénTel. : 56 (41) 922 200Fax : 56 (41) 922 202Post Box [email protected]

RELATED COMPANIES

BICECORP S.A.Teatinos 220, P. 5Tel. : 56 (2) 692 2000Fax: 56 (2) 698 0803Santiago

SOCIEDAD HIDROELÉCTRICA MELOCOTÓN LTDA.Teatinos 220, P. 5Tel. : 56 (2) 692 2004Telex 340090 BICE CZSantiago

INVERSIONES EL RAULÍ S.A.Teatinos 280, P. 3Tel. : 56 (2) 675 0110Fax : 56 (2) 675 [email protected]

CONTROLADORA DE PLAGAS FORESTALES S.A.Camino Público Los Ángeles Laja s/nTel. : 56 (43) 320 017Fax : 56 (43) 320 018Post Box [email protected] Ángeles

OVERSEAS SUBSIDIARIES

CMPC INVESTMENTS LTD.P.O. Box 472, St. Peters HouseLe Bordage, St. Peter PortGuernsey GY1 6AX,Channel Islands

CMPC EUROPE LIMITED

RepresentativeClaudio Ojeda Strauch5 Dukes GateActon Lane ChiswickLondon W4 5DXTel. : 44 (20) 8996 9960Fax : 44 (20) 8996 9967London, England

CMPC ASIA LIMITED

RepresentativePatricio Arenas LópezToto Building 6th Fl.5 - 1 - 4 Toranamon Minato - ku, TokyoTel. : 81 (3) 5733 2570Fax : 81 (3) 3432 3005Japan

CMPC INVERSIONES DEARGENTINA S.A.Suipacha 1111, P.18Tel. : 54 (11) 4630 0100Fax : 54 (11) 4630 0111Post Code C1008AAWBuenos Aires, Argentina

LA PAPELERA DEL PLATA S.A.

General ManagementAv. Intendente Francisco Rabanal 3120Tel. : 54 (11) 4630 0100Fax : 54 (11) 4630 [email protected] Aires, Argentina

Zárate MillCamino de la Costa Brava Km. 7Tel. : 54 (03) 487 428300Fax : 54 (03) 487 427116Zárate, Buenos AiresArgentina

Corepa MillPaysandú 601Tel. : 54 (11) 4207 7985Fax : 54 (11) 4207 8220Wilde, Buenos AiresArgentina

Córdoba MillLizardo Novillo Saravia 400Barrio IponaTel./Fax: 54 (0351) 4610108

4610112Córdoba, Provincia de Córdoba Argentina

Naschel Mill9 de Julio s/n e Islas MalvinasTel./Fax: 54 (2656) 491019Naschel, San LuisArgentina

FORESTAL BOSQUES DEL PLATA S.A.Suipacha 1111, P. 18Tel. : 54 (11) 4630 0100

4918 1535Fax : 54 (11) 4630 0111

4630 0110Post Code [email protected] Aires, Argentina

FABI BOLSAS INDUSTRIALES S.A.

Management & SalesVirasoro 2656, EdificioUruguay IIITel./Fax : 54 (11) 4737 1001Post Code 1643, Beccar Provincia Buenos [email protected] Aires, Argentina

Hinojo MillCalle 5 s/n - (7310)Hinojo - OlavarríaTel./Fax: 54 (22) 8449 1036

8449 1150Buenos Aires, Argentina

NASCHEL S.A.

General ManagementAv. Intendente Francisco Rabanal 3120Tel. : 54 (11) 4630 0180Fax : 54 (11) 4630 0170Buenos Aires, Argentina

Naschel MillPringles entre Belgrano y 25 de MayoTel. : 54 (26) 5649 1004Fax : 54 (26) 5649 1046Naschel, San LuisArgentina

PAPELERA DEL RIMAC S.A.Av. Santa Rosa 550, Santa AnitaTel. : 51 (1) 362 5070Fax : 51 (1) 362 [email protected], Peru

PRODUCTOS TISSUE DEL PERÚ S.A.Av. Santa Rosa 550, Santa AnitaTel. : 51 (1) 362 5070Fax : 51 (1) 362 [email protected], Perú

FORSAC PERÚ S.A.Av. Gerardo Unger 5339,Los OlivosTel. : 51 (1) 485 0510Fax : 51 (1) 485 [email protected], Perú

GESTUM INVERSIONES, S.L.Velázquez 1728001 MadridTel. : 34 (91) 426 0700Fax : 34 (91) 426 0701Spain

PROTISA DO BRASIL LTDA.Rua Albuquerque Lins 6358° Andar c.j. 81 y 84 Tel./Fax: 55 (11) 3661 0000Post Code 06787 - 480Barrio Santa CeciliaSao Paulo, Brazil

IPUSA S.A.Av. España s/nCiudad de Pando - CanelonesTel. : 59 (82) 292 2240Fax : 59 (82) 292 1358Post Code [email protected]

COMPAÑÍA PRIMUS DEL URUGUAY S.A.Av. España s/nCiudad de Pando - CanelonesTel. : 59 (82) 292 2240Fax : 59 (82) 292 1358Post Code 91000Uruguay

CELULOSAS DEL URUGUAY S.A.Av. España s/nCiudad de Pando - CanelonesTel. : 59 (82) 292 2240Fax : 59 (82) 292 1358 Post Code 91000Uruguay

CMPC USA, INC.3330 Cumberland Blvd., Suite 500Atlanta, GA 30339Tel. : 1 (770) 933 6237Fax : 1 (770) 933 6238USA

INVERSIONES CMPC CAYMAN LTD.P.O. BOX 309, Ugland HouseSouth Church StreetGeorge TownGrand Cayman, Cayman Islands

PROPA CAYMAN LTD.P.O. Box 309, Ugland HouseSouth Church StreetGeorge TownGrand Cayman, Cayman Islands

TISSUE CAYMAN LTD.P.O. Box 309, Ugland HouseSouth Church StreetGeorge TownGrand Cayman, Cayman Islands

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