SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
October 6, 2004
Commission File Number 1-12752
Glassworks of Chile
(Translation of registrant's name into English)
Hendaya 60
Las Condes
Santiago, Chile
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): ______
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes [ ] No [X]
Cristalchile
NYSE: CGW
Santiago: CRISTALES
www.cristalchile.com
CONTACT IN SANTIAGO:
Ricardo Dunner
Head of Investor Relations
PH: (562 787-8855
FAX: (562) 787-8800
EMAIL: ir@cristalchile.cl
FECU (Standardized Quarterly Financial Report)
1. IDENTIFICATION
1.01.05.00 Firm Name CRISTALERIAS DE CHILE S.A.
1.01.04.00 Company RUT 90331000-6
1.00.01.10 Starting date 1/1/2004
1.00.01.20 Closing date 03/31/2004
1.00.01.30 Type of Currency Chilean Pesos
1.00.01.40 Type of Financial Statements Individual
ASSETS
2.0 FINANCIAL STATEMENTS
2.01 BALANCE SHEET
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
ASSETS NOTE No. 03-31-04 03-31-03
------ -------- -------- --------
5.11.00.00 TOTAL CURRENT ASSETS 100,541,571 111,227,932
5.11.10.10 Cash 1,370,222 975,794
5.11.10.20 Time deposits 41 4,630,507 16,429,870
5.11.10.30 Marketable securities (net) 4 53,866,117 59,218,019
5.11.10.40 Debtors from sales (net) 5 16,457,533 15,630,357
5.11.10.50 Documents receivable (net) 5 886,438 1,785,525
5.11.10.60 Sundry debtors (net) 5 645,858 978,504
5.11.10.70 Doc. & accts receivable related Co. 6 1,998,353 2,461,660
5.11.10.80 Inventories (net) 7 5,994,512 5,944,490
5.11.10.90 Recoverable taxes 8 1,876,287 853,045
5.11.20.10 Prepaid expenses 356,831 398,419
5.11.20.20 Deferred taxes 8 447,736 474,170
5.11.20.30 Other current assets 10-11 12,011,177 6,078,079
5.11.20.40 Leasing contracts (net) 0 0
5.11.20.50 Leasing assets (net) 0 0
5.12.00.00 TOTAL FIXED ASSETS 75,150,640 72,895,740
5.12.10.00 Land 12 1,495,201 1,497,493
5.12.20.00 High rises & infrastructure 12 22,551,878 22,076,137
5.12.30.00 Machinery & equipment 12 103,814,809 85,435,389
5.12.40.00 Other fixed assets 12 7,682,161 14,077,566
5.12.50.00 Positive goodwill from technical
revaluation of fixed assets 12 6,573,793 7,675,631
5.12.60.00 Depreciation (minus) 12 (66,967,202) (57,866,476)
5.13.00.00 TOTAL OTHER ASSETS 177,904,452 182,381,340
5.13.10.10 Investment in related companies 14 143,881,104 144,225,456
5.13.10.20 Investment in other companies 0 0
5.13.10.30 Negative goodwill 16 1,840,523 2,011,178
5.13.10.40 Positive goodwill (minus) 0 0
5.13.10.50 Long-term debtors 5 122,386 161,203
5.13.10.60 Doc. & accts receivable related Co. 6 20,666,868 22,598,303
5.13.10.65 Long-term deferred taxes 0 0
5.13.10.70 Intangibles 0 0
5.13.10.80 Amortization (minus) 0 0
5.13.10.90 Other 18 11,393,571 13,385,200
5.13.20.10 Long-term leasing contracts (net) 0 0
5.10.00 TOTAL ASSETS 353,596,663 366,505,012
LIABILITIES
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
LIABILITIES NOTE No. 03-31-04 03-31-03
----------- -------- -------- --------
5.21.00.00 TOTAL CURRENT LIABILITIES 14,867,540 15,342,195
5.21.10.10 Short-term oblig. Banks & Fin. Inst. 0 0
5.21.10.20 Short-term portion - Long-term oblig.
Banks & Financial Institutions 19 129,318 445,744
5.21.10.30 Obligations with the public (notes) 0 0
5.21.10.40 Short-term portion oblig with public 759,861 748,203
5.21.10.50 Long-term oblig. due within 1 year 0 0
5.21.10.60 Dividends payable 40,453 77,453
5.21.10.70 Accounts payable 1,858,882 2,127,914
5.21.10.80 Notes payable 1,504,799 4,142,922
5.21.10.90 Sundry creditors 859,954 1,357,827
5.21.20.10 Notes & accts payable related Co. 6 180,281 146,591
5.21.20.20 Provisions 23 6,872,724 4,653,758
5.21.20.30 Withholdings 895,484 743,989
5.21.20.40 Income tax 0 0
5.21.20.50 Earned income 0 0
5.21.20.60 Deferred taxes 0 0
5.21.20.70 Other current liabilities 34 1,765,784 897,794
5.22.00.00 TOTAL LONG-TERM LIABILITIES 108,287,797 114,076,231
5.22.10.00 Oblig with Banks & Financial Inst. 21 30,820,500 36,578,000
5.22.20.00 Long-term oblig with public (bonds) 68,965,362 68,812,760
5.22.30.00 Long-term notes payable 0 0
5.22.40.00 Long-term sundry debtors 152,863 242,381
5.22.50.00 Long-term notes & accts. payable 6 0 0
related companies
5.22.60.00 Long-term provisions 23 6,001,842 6,063,280
5.22.70.00 Long-term deferred taxes 8 2,347,230 2,379,810
5.22.80.00 Other long-term liabilities 0 0
5.23.00.00 MINORITY INTEREST 0 0
5.24.00.00 TOTAL EQUITY 230,441,326 237,086,586
5.24.10.00 Paid-in capital 27 65,396,749 64,749,257
5.24.20.00 Reserve capital revaluation 27 (326,984) 323,746
5.24.30.00 Premium in sale of own shares 27 27,735,005 27,736,385
5.24.40.00 Other reserves 27 7,084,586 10,040,408
5.24.50.00 Retained earnings (addition of codes
5.24.51.00 to 5.24.56.00) 27 130,551,970 134,236,790
5.24.51.00 Reserve future dividends 27 122,544,319 115,487,218
5.24.52.00 Accrued profits 27 5,441,098 14,428,510
5.24.53.00 Accrued losses (minus) 0 0
5.24.54.00 Profit (loss) for the year 27 2,566,553 4,321,062
5.24.55.00 Prov. dividends (minus) 0 0
5.24.56.00 Accr. deficit dev. period 27 0 0
5.20.00.00 TOTAL LIABILITIES 353,596,663 366,505,012
INCOME STATEMENT
2.02 INCOME STATEMENT
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
INCOME STATEMENT NOTE No. 03-31-04 03-30-03
---------------- -------- -------- --------
5.31.11.00 OPERATING RESULTS 4,289,249 5,849,682
5.31.11.10 Gross Margin 5,596,365 7,085,487
5.31.11.11 Sales 15,386,996 17,448,464
5.31.11.12 Costs (minus) (9,790,631) (10,362,977)
5.31.11.20 Adm. & sales expenses (minus) (1,307,116) (1,235,805)
5.31.12.00 NON-OPERATING RESULTS (1,239,126) (499,176)
5.31.12.10 Interest income 522,448 433,497
5.31.12.20 Income from invmnts Rel. Co. 14 1,121,653 1,054,518
5.31.12.30 Other non-operating income 28 131,864 89,874
5.31.12.40 Loss invmnts Rel. Co. (-) (2,446,551) (1,942,221)
5.31.12.50 Amortization neg. goodwill (-) 16 (42,639) (42,641)
5.31.12.60 Interest expenses (minus) (1,157,853) (1,234,535)
5.31.12.70 Other non-operat expenses (-) 28 (251,990) (231,038)
5.31.12.80 Price level restatement 29 153,682 37,729
5.31.12.90 Exchange differences 30 730,260 1,335,641
5.31.10.00 RESULTS BEFORE INCOME TAX 3,050,123 5,350,506
AND EXTRAORDINARY ITEMS
5.31.20.00 INCOME TAX 8 (483,570) (1,029,444)
5.31.30.00 EXTRAORDINARY ITEMS 0 0
5.31.40.00 PROFIT (LOSS) BEFORE 2,566,553 4,321,062
MINORITY INTEREST
5.31.50.00 MINORITY INTEREST 0 0
5.31.00.00 NET INCOME (LOSS) 2,566,553 4,321,062
5.32.00.00 Amortization of positive goodwill 0 0
5.30.00.00 INCOME (LOSS) FOR THE YEAR 6 2,566,553 4,321,062
DIRECT CASH FLOW STATEMENT
2.03 CASH FLOW STATEMENT
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
DIRECT CASH FLOW STATEMENT NOTE No. 03-31-04 03-31-03
-------------------------- -------- -------- --------
5.41.11.00 NET FLOW FROM OP. ACT. 9,978,872 10,025,362
5.41.11.10 Collection from sales debtors 22,658,674 24,484,071
5.41.11.20 Interests received 2,080,278 1,461,445
5.41.11.30 Dividends & other distributions funds received 1,031,758 90,258
5.41.11.40 Other income 182,680 134,617
5.41.11.50 Payments to suppliers & personnel (-) (11,941,128) (12,327,841)
5.41.11.60 Interest paid (minus) (1,999,006) (1,813,381)
5.41.11.70 Income tax paid (minus) (577,728) (765,784)
5.41.11.80 Other expenses 33 (52,481) (177,830)
5.41.11.90 V.A.T. & other taxes (1,403,815) (1,060,193)
5.41.12.00 CASH FLOW FINANCING ACTIVITIES (952,972) (1,337,904)
5.41.12.05 Proceeds from share issue 0 0
5.41.12.10 Loans received 0 0
5.41.12.15 Obligations with the public 0 0
5.41.12.20 Secured loans from related companies 0 0
5.41.12.25 Other loans from related companies 0 0
5.41.12.30 Other financing resources 0 0
5.41.12.35 Dividends paid (minus) (947,653) (1,337,904)
5.41.12.40 Capital distributions (minus) 0 0
5.41.12.45 Repayment of loans (minus) 0 0
5.41.12.50 Payment of obligations with the public (-) 0 0
5.41.12.55 Repayment of secured loans from rel Co. (-) 0 0
5.41.12.60 Repayment other loans from related Co. (-) (5,319) 0
5.41.12.65 Share issue payment (minus) 0 0
5.41.12.70 Payment of issue publ oblig (minus) 0 0
5.41.12.75 Other financing payments (minus) 33 0 0
5.41.13.00 CASH FLOW FROM INVESTING ACTIVITIES (1,605,749) (3,363,292)
5.41.13.05 Sale of fixed assets 1,012 56,713
5.41.13.10 Sale of permanent investments 0 0
5.41.13.15 Sale of other investments 33 0 0
5.41.13.20 Proceeds secured loans to related Comp. 0 0
5.41.13.25 Proceeds other loans to related companies 0 889,139
5.41.13.30 Other investment income 33 0 967,805
5.41.13.35 Incorporation of fixed assets (minus) (1,605,021) (5,258,623)
5.41.13.40 Capitalized interests payment (minus) 0 0
5.41.13.45 Permanent Investments (minus) 0 0
5.41.13.50 Investments in financial instruments (minus) 0 0
5.41.13.55 Other loans to related companies (minus) (1,345) 0
5.41.13.60 Other loans to related companies (minus) (395) (6,646)
5.41.13.65 Other distrib of funds on invest activities (-) 33 0 (11,680)
5.41.00.00 TOTAL NET CASH FLOW FOR THE PERIOD 7,420,151 5,324,166
5.42.20.00 EFFECT OF INFLATION ON CASH & CASH EQUIV. 300,368 (404,304)
5.41.00.00 NET CHANGE IN & CASH EQUIVALENT 7,720,519 4,919,862
5.42.00.00 CASH & CASH EQUI AT BEGINNING OF PERIOD 59,699,915 73,628,508
5.43.00.00 CASH & CASH EQUIV BALANCE AT END OF PERIOD 67,420,434 78,548,370
INCOME STATEMENT RECONCILIATION
CONCILIATION BETWEEN CASH FLOW GENERATED BY THE OPERATION'S
ACTIVITIES AND THE INCOME STATEMENT FOR THE YEAR
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
CASH FLOW - INCOME STATEMENT RECONCILIATION NOTE No. 03-31-04 03-31-03
------------------------------------------- -------- -------- --------
5.50.10.00 Profit (Loss) for the year 2,566,553 4,321,062
5.50.20.00 Profit in sale of assets 0 7,268
5.50.20.10 (Profit) Loss in sale of fixed assets 0 7,268
5.50.20.20 Profit in sale of investments (minus) 0 0
5.50.20.30 Loss in sale of investments 0 0
5.50.20.40 (Profit) Loss in sale of other assets 0 0
5.50.30.00 Non-cash losses (gains) 5,493,462 4,464,732
5.50.30.05 Depreciation for the year 12 2,589,390 2,301,568
5.50.30.10 Amortization of intangibles 202,815 198,949
5.50.30.15 Write-offs and provisions 2,200,346 1,517,635
5.50.30.20 Accrued earnings from investments in related
companies (minus) 14 (1,121,653) (1,054,518)
5.50.30.25 Accrued losses from investments in related Co. 14 2,446,551 1,942,221
5.50.30.30 Negative goodwill amortization 16 42,639 42,641
5.50.30.35 Positive goodwill amortization (minus) 0 0
5.50.30.40 Price level restatement 29 (153,681) (37,729)
5.50.30.45 Net exchange difference 30 (730,259) (1,335,641)
5.50.30.50 Other non-cash credits to results (minus) (8,188) (8,188)
5.50.30.55 Other non-cash debits to results 25,502 897,794
5.50.40.00 Changes in Assets affecting cash flow (incr) decreases 2,429,973 2,309,958
5.50.40.10 Debtors from sales 3,279,156 2,932,298
5.50.40.20 Inventory (1,255,165) (274,506)
5.50.40.30 Other assets 405,982 (347,834)
5.50.50.00 Changes in liabilities affecting cash flow
increases (decr) (511,116) (1,077,658)
5.50.50.10 Accounts payable related to results for the year (321,433) (526,311)
5.50.50.20 Interests payable (927,559) (695,004)
5.50.50.30 Income tax payable (net) 234,310 347,635
5.50.50.40 Other accounts payable related to non-oper results 485,139 3,399
5.50.50.50 VAT and other taxes payable (net) 18,427 (207,377)
5.50.60.00 Profit (Loss) of minority interest 0 0
5.50.00.00 NET OPERATING CASH FLOW 9,978,872 10,025,362
01. Registration In The Securities Register
1. IDENTIFICATION OF THE COMPANY AND REGISTRATION IN THE SECURITIES REGISTER
The company is registered in the Securities Register under N 061 and is
supervised by the Securities and Insurance Commission.
02. Applied Accounting Criteria
a) Accounting Period
These financial statements correspond to the period between January 1 and
March 31 of 2004 and 2003.
b) Preparation basis of financial statements:
These individual financial statements as of March 31, 2004 and 2003 have been
prepared on the basis of generally accepted accounting principles and specific
norms issued by the S.V.S., with the former prevailing in case of
discrepancies.
Investments in subsidiaries are recorded on one line in the general balance
sheet at their net worth and, therefore, they have not been consolidated line
by line. This treatment does not modify the net income of the fiscal year nor
the net worth.
These financial statements have been issued only for purposes of making an
individual analysis of the Company and, in consideration thereof, shall be
read together with the consolidated statements, which are required by
generally accepted accounting principles.
c) Presentation Basis
For comparison purposes, the financial statements and figures included in the
disclosures for the 2003 fiscal year are presented at its nominal value, since
the variation in the C.P.I. for the period was zero (0%).
d) Adjustment for Currency Devaluation (Price Level Restatement)
Financial statements have been corrected monetarily on the basis of
considering the variation in the purchasing power of the currency which
occurred in the 2004 fiscal year, which was -0.5% (0.5% in 2003).
For financial purposes, effective variations occurred on each month of 2003
and 2004 with respect to March 2003 and 2004 have been considered. For tax
purposes negative variations occurred in some months of 2003 and 2004 with
respect to March 2003 and 2004 have been equaled to zero, according to
instructions of the Chilean IRS, not significantly affecting financial
statements.
e) Conversion Basis
Balances in foreign currency and indexed currency units have been converted to
pesos at the indicated parities:
2004 2003
Ch$ Ch$
---------- ----------
U.S. Dollar 616.41 731.56
Pound Sterling 1,136.24 1,156.25
Swiss Franc 486.59 540.65
EURO 758.38 797.34
Unidad de Fomento 16,820.82 16,783.60
f) Marketable Securities and Time Deposits
Transactions in fixed income instruments are shown at the return value of the
investment, which does not exceed the market value as of March 31, 2004.
Investments in stock are shown at the lowest value between the corrected cost
and market value.
Time deposits are shown at the value of the investment, plus adjustments and
interest accrued as of the date of the fiscal year.
Investments in Mutual Funds are valued at the liquidation value at the close
of the fiscal year.
g) Inventory
Inventory of finished products has been valued as of March 31, 2004 and 2003
at the direct production cost, duly updated, and raw materials and materials
at the cost of the last purchase or its corrected cost. Those valuations do
not exceed the net liquidation value.
h) Bad Debts (Uncollectables)
The parent company and subsidiaries have made provision for bad debts that is
deducted from debtors for sales. The criterion adopted to estimate them is the
age of the balances.
i) Fixed Assets
Fixed assets are shown at purchase cost plus legal and regulatory revaluations
accumulated until March 31, 2004 and 2003.
j) Depreciation of Fixed Assets
Depreciation of this property is calculated on updated values, according to
the straight-line depreciation system, considering the estimated useful life
of the property.
k) Assets in Leasing
None.
l) Sales Transactions with Leaseback
None.
m) Intangibles
As of March 2003 and 2004 there is no balance under this item.
n) Investments in Related Companies
Investments in stock and rights in related companies have been valued
according to the percentage of the holding that corresponds to the Company in
the equity of its affiliates (VPP), according to procedures established for
these purposes by circular 368 of the Securities and Insurance Commission.
o) Negative and Positive Investment Goodwill:
Negative and positive investment goodwill have arisen when comparing the price
paid for the investment made and the proportional value that corresponds to
that investment in the net worth of the company.
Negative goodwill amortizations are carried out over a twenty-year period.
As of March 31, 2004 and 2003 there was no positive investment goodwill.
p) Operations with buyback and sellback agreement
Financial instruments acquired with a sellback agreement are shown at their
purchase value plus interest and adjustments accrued at the closing of the
fiscal year, and they are classified in Other Current Assets, in the terms
established in Circular No. 768 of the Securities and Insurance Commission.
q) Deferred Taxes and Income Tax
The company has complied with deferred taxes, in accounting terms, as
established in Technical Bulletin No. 60 and the norms indicated in Circular
1466 of the S.V.S.
Income tax is recorded in the accounting on the basis of the calculation of
net taxable income determined according to norms established in the Income Tax
Law.
r) Severance payment
The parent company has established a reserve for all of the personnel's
severance payment, according to the union contracts signed with their workers.
This reserve is shown at the present value of the obligation.
s) Sales
The company recognizes the income from its operations on an accrued basis
according to generally accepted accounting principles.
t) Derivative Contracts
The company maintains Future contracts in foreign currency, which have been
recorded as established in Technical Bulletin 57 of the Accountants
Association of Chile.
u) Computer Software
The company develops computer software with its own resources, and it also
acquires computer packages from third parties. Disbursements for its own
development are charged to results as they are generated. Computer packages
are recorded in Fixed Assets and amortized in 36 months.
v) Research and Development Expenses
The company records expenses for this concept directly in results as they are
generated.
w) Cash Flow Statement:
According to current regulations of the Securities and Insurance Commission
and the Accountants Association of Chile, in preparing the cash flow
statement, the Company has considered time deposits, fixed rate mutual fund
investments and deposits with maturities under 90 days as cash.
Such cash flows related to the Company's line of business, interest paid,
interest income received, dividends received, and all such that is not defined
as investment or Financing is included under the heading "Flow Originating in
Activities of the Operation."
Income by time deposits and agreements with maturity more than 90 days has
been clasified in the item "Investments in Financial Instruments".
03. Accounting Changes
As of March 31, 2004 and 2003, there have not been any changes in the
accounting criteria that affect the individual financial statements.
04. Marketable Securities
As of March 31, 2004, this item is composed by the following investments:
a) Investments in bonds and Fixed Rate Instruments in the amount of Th Ch$
49,982,182 and 24,917,945 Euros, mainly corresponding to investments in
State Bonds and bonds of financial institutions in USA, Germany, Holland,
Collateralized Bonds of Private Companies in USA (guaranteed by accounts
receivable) and USA Mortgage Bonds with state guarantee.
b) Th Ch$ 4,133,777 in shares.
c) Th Ch$ 25,552 in investment funds.
As of March 31, 2003, this item is composed by the following investments:
a) Investments in bonds and Fixed Rate Instruments in the amount of Th Ch$
55,361,469 mainly corresponding to investments in State Bonds and bonds
of financial institutions in USA, Germany, Holland, Collateralized Bonds
of Private Companies in USA (guaranteed by accounts receivable) and USA
Mortgage Bonds with state guarantee.
b) Th Ch$ 3,830,015 in shares.
c) Th Ch$ 26,535 in investment funds.
CRISTALERIAS DE CHILE S.A.
NOTE 4 -MARKETABLE SECURITIES- BALANCE COMPOSITION
Book Value
Type of Security 03-31-2004 03-31-2003
------------------------------- ----------- -----------
Stock 4,133,777 3,830,015
Bonds 49,706,788 55,361,469
Mutual fund shares 0 0
Investment fund shares 25,552 26,535
Public tender promissory notes 0 0
Mortgage bonds 0 0
Interests bonds Celulosa Arauco 0 0
Total Marketable Securities 53,866,117 59,218,019
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - SHARES
Unit Market
Number of Share Market Investment Corrected
R.U.T. Company Name Shares Percentage Value Value Cost
----------- ------------------------------------- --------- ---------- ------ ---------- ---------
96.512.200-1 Bodegas y Vinedos Santa Emiliana S.A. 63,642,856 9.9980 90 5,727,857 4,133,777
Value Investment Portfolio 5,727,857 4,133,777
Adjustment Reserve 0
Book value, Investment Portfolio 4,133,777
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - FIXED RATE INSTRUMENTS
Book Value
Par ------------------- Market
Type of Security Value Amount Rate % Value Reserve
------------------------------------------------------ --------- ---------- ------ ---------- -------
Financial Institutions bonds (USA, Germany and Holland) 21,676,997 21,676,997 0.56 21,676,997 0
US treasury bonds 16,721,713 16,721,713 1.44 16,721,713 0
Mortgage bonds USA, with state guarantee 6,115,179 6,115,179 1.44 6,115,179 0
Call Deposit 5,218,451 5,218,451 0.56 5,218,451 0
TOTAL 49,732,340 49,732,340 49,732,340 -
Note:
(1) The investements were made in U.S. Dollars (62%) and EUROS (38%) with custody abroad.
(2) These investments can be rescued within 48 hours warning.
(3) Rate for period from 01-01-2004 to 03-31-2004.
05. Short-Term and Long-Term Debtors
At March 31, 2004 and 2003 there are balances of short-term debtors of Th Ch$
17,989,829 and Th Ch$ 18,394,386, respectively.
In addition there is a balance of Th Ch$ 122,386 for Long-Term debtors in 2004
(Th Ch$ 161,203 in 2003).
As of March 31, 2004 and 2003 the company has established a reserve for bad
debts of Th Ch$ 143,127 in 2004 (Th Ch$ 143,127 in 2003), which is deducted
from Debtors for Sales.
The balance of Short-term Debtors is shown net of the reserve for bad debtors
and customer advances.
CRISTALERIAS DE CHILE S.A.
NOTE 5 -SHORT AND LONG TERM DEBTORS
Current Assets
----------------------------------------------------------------------------
Over 90 days
Up to 90 days up to 1 year Total Current (net) Long Term
--------------------- --------------------- --------------------- ---------------------
Item 03-31-2004 03-31-2003 03-31-2004 03-31-2003 Subtotal 03-31-2004 03-31-2003 03-31-2004 03-31-2003
----------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Debts from Sales 15,752,978 15,029,889 847,682 743,595 16,600,660 16,457,533 15,630,357 0 0
Estimate of non-
collectable debt - - - 143,127 - - - -
Documents receivable 762,934 1,712,512 123,504 73,013 886,438 886,438 1,785,525 0 0
Estimate of bad debtors - - - - - - - - -
Misc. debtors 613,565 929,579 32,293 48,925 645,858 645,858 978,504 122,386 161,203
Estimate of bad debtors - - - - - - - - -
Total Long Term Debtors 122,386 161,203
06. Balances and Transactions with related entities
I. Balances receivable in the Short-Term as of March 31, 2004 and 2003 amount
Th Ch$ 1,998,353 and Th Ch$ 2,461,660, respectively. In addition, in the
Long-Term a balance of Th Ch$ 20,666,868 and Th Ch$ 22,598,303 is recorded,
respectively, which correspond to Th Ch$ 19,809,006 in 2004 (Th Ch$
20,601,055 in 2003) for the sale of Rayen Cura S.A.I.C. shares to the
subsidiary Cristalchile Inversiones S.A., equivalent to UF 1,177,648,
without interests and Th Ch$ 857,862 in 2004 (Th Ch$ 1,997,248), which
correspond to loans granted to Red Televisiva Megavision S.A.
Detail of outstanding credits from related companies:
1) Loan to Red Televisiva Megavision S.A.
Annual Rate 6.26%, UF adjustability
07.05.2006 17,000 UF Th Ch$ 285,954
01.05.2007 17,000 UF Th Ch$ 285,954
07.05.2007 17,000 UF Th Ch$ 285,954
3) There are balances for invoicing of Sales with the following related
companies with expiration under 90 days:
2004 2003
Th Ch$ Th Ch$
--------- ---------
S.A. Vina Santa Rita 1,789,039 1,761,674
Vina Carmen S.A. 18,795 0
Vina Los Vascos S.A. 169,953 78,594
Servicios y Consultorias Hendaya S.A. 210 253
Rayen Cura S.A.I.C. 5,435 0
--------- --------
Total 1,983,432 1,840,521
As of March, 2003, there was a receivable balance correspond to a loan
granted to CristalChile Comunicaciones S.A. for Th Ch$ 14,225.
II. Balances Payable in the Short-Term amount Th Ch$ 180,281 in 2004 and Th
Ch$ 146,591 in 2003, which correspond to invoicing with maturity under 90
days:
2004 2003
Th Ch$ Th Ch$
--------- ---------
S.A. Vina Santa Rita 151,237 124,165
Ediciones Financieras S.A. 2,954 2,830
Vina Los Vascos S.A. 13,204 1,109
Cia. Electro Metalurgica S.A. 3,185 2,124
--------- ---------
TOTAL 170,580 130,228
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCE AND TRANSACTIONS WITH RELATED COMPANIES
DOCUMENTS AND ACCOUNTS RECEIVABLE
R.U.T. Company Short Term Long Term
---------- ------------------------------ ------------------------- -------------------------
03-31-2004 03-31-2003 03-31-2004 03-31-2003
---------- ---------- ---------- ----------
86547900-K S.A. VINA SANTA RITA 1,789,039 1,761,674 0 0
79952350-7 RED TEL. MEGAVISION S.A. 13,575 606,914 857,862 1,997,248
89150900-6 VINA LOS VASCOS S.A. 169,953 78,594 0 0
96721580-5 CRISTACHILE COMUNICACIONES S.A. 1,346 14,225 0 0
96972440-5 CRISTALCHILE INVERSIONES S.A. 0 0 19,809,006 20,601,055
83032100-4 SERV. Y CONSULTORIAS HENDAYA S.A. 210 253 0 0
96566900-0 NAVARINO S.A. 0 0 0 0
96640360-8 QUEMCHI S.A. 0 0 0 0
87941700-7 VINA DEL CARMEN S.A. 18,795 0 0 0
86881400-4 ENVASES CMF S.A. 0 0 0 0
0-E RAYEN CURA S.A.I.C. 5,435 0 0 0
TOTAL 1,998,353 2,461,660 20,666,868 22,598,303
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
DOCUMENTS AND ACCOUNTS PAYABLE
R.U.T. Company Short Term Long Term
---------- -------------------------------- ------------------------- -------------------------
03-31-2004 03-31-2003 03-31-2004 03-31-2003
---------- ---------- ---------- ----------
86547900-K S.A. VINA SANTA RITA 151,237 124,165 0 0
89150900-6 VINA LOS VASCOS S.A. 13,204 1,109 0 0
96972440-5 CRISTALCHILE INVERSIONES S.A. 7,947 9,917 0 0
96721580-5 CRISTALCHILE COMUNICACIONES S.A. 937 0 0 0
96539380-3 EDICIONES FINANCIERAS S.A. 2,954 2,830 0 0
86755600-1 BAYONA S.A. 0 0 0 0
96608270-4 CIECSA S.A. 817 6,446 0 0
79753810-8 CLARO Y CIA. 0 0 0
90320000-6 CIA. ELECTROMETALURGICA S.A. 3,185 2,124 0 0
83032100-4 SERV. Y CONSULTORIAS HENDAYA S.A. 0 0 0 0
TOTAL 180,281 146,591 0 0
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
TRANSACTIONS
03-31-2004 03-31-2003
------------------------ --------------------------
Company R.U.T. Relationship Description of Amount Effect on Amount Effect on
Transaction Results Results
(Debit/Credit) (Debit/Credit)
----------------------- ----------- --------------- -------------- --------- -------------- --------- --------------
CRISTALCHILE 96721580-5 Subsidiary Adjustments 0 0 33 33
COMUNICACIONES
CRISTALCHILE
INVERSIONES S.A. 96972440-5 Subsidiary Credit return 0 0 881,208 0
Subsidiary Adjustments 116,799 -116,799 45,692 45,692
Account 0 0 38 0
Payments
S.A. VINA SANTA RITA 86547900-K Subsidiary Container 1,372,476 328,926 1,359,758 384,482
Sales
Subsidiary Packaging 130,671 0 107,747 0
sales
Subsidiary Materials 127,117 123 105,327 102
purchased
Subsidiary Leasings 177 177 43,732 17,785
several
SERV. Y CONS. 83032100-4 Controlling Dividends paid 85,190 0 119,267 0
HENDAYA S.A. stockholder
Controlling Received 259,192 -259,192 256,708 -256,708
stockholder services
Controlling Given services 4,615 4,615 5,034 5,034
stockholder
CIA. ELECTROMETALURGICA 90320000-6 Controlling Dividends paid 326,700 0 457,380 0
S.A. stockholder
Controlling Materials 2,676 0 1,800 0
stockholder purchased
CLARO Y CIA. 79753810-8 With the Legal assesment 5,914 -5,914 4,911 -4,911
Chairman
NAVARINO S.A. 96566900-0 Indirect Given services 2,531 2,531 2,506 2,506
subsidiary
RED TELEVISIVA 79952350-7 Related with Interests 13,575 13,575 36,272 36,272
MEGAVISION S.A. Subsidiary
Related with Adjustments 5,058 -5,058 6,040 6,040
Subsidiary
QUEMCHI S.A. 96640360-8 Indirect Loaned services 2,545 2,545 3,135 3,135
affiliate
CIA. SUDAMERICANA DE 90160000-7 Indirect Carrier 2,774 0 113,503 0
VAPORES S.A. affiliate services
BAYONA S.A. 86755600-1 Controlling Dividends paid 88,688 0 124,163 0
stockholder
VINA LOS VASCOS S.A. 89150900-6 Indirect Direct sales 204,434 48,994 141,924 40,130
affiliate
Indirect Materials 18,179 0 7,531 0
affiliate purchased
VINA CARMEN S.A. 87941700-7 Subsidiary Offices and 18,795 18,795 0 0
establishments
rented
EDICIONES FINANCIERAS 96793770-3 Indirect Received 2,603 -2,603 0 0
S.A. affiliate services
RAYEN CURA S.A.I.C. 0-E Indirect Direct Sales 32,003 9,241 37,895 0
affiliate
07. Inventory
The balance of the inventory item as of March 2004 and 2003 corresponds to
finished products and materials that are valued as described in Note 2 g). A
detail of its composition is shown below:
2004 2003
Th Ch$ Th Ch$
---------- ---------
Finished Products 3,578,344 2,350,612
Raw Materials and Fuel 1,018,554 1,611,679
Materials and spare parts
to be consumed 952,789 1,049,208
Materials in transit 444,825 932,991
---------- ---------
TOTAL 5,994,512 5,944,490
08. Deferred taxes and income taxes
A) DEFERRED TAXES.
Accumulated balances of deferred taxes for temporary differences, and their
composition in the income tax account for effects of fiscal year results and
recognition of deferred taxes, are presented on the attached charts.
Estimated amortization periods of deferred taxes have been estimated on the
average at 1 years for Short-Term Assets, 4 for Long-Term Assets, and 14 for
Long-Term Liabilities.
B) INCOME TAX
The Company established tax provisions of 17% of First Cateogry Income Tax in
2004 and 16.5% in 2003, and 35% as single tax under Art. 21, for the 2004 and
2003 fiscal years.
Credits against taxes are shown deducting the payable obligation.
The itemized list is the following:
2004 2003
Th Ch$ Th Ch$
---------- -----------
Fiscal year income tax reserve (784,680) (912,701)
Single tax reserve (3,023) (2,646)
---------- -----------
SUBTOTAL (787,703) (915,347)
Credits:
Monthly reserve payments 565,805 771,723
Training expenditure 59 60
Credit from donations 0 0
Recoverable VAT 0 0
---------- -----------
CREDIT SUBTOTAL 565,864 771,783
INCOME TAX TOTAL 0 0
VAT Tax Credit previous fiscal year 2,098,126 996,609
TOTAL TAXES TO BE ---------- -----------
RECOVERED 1,876,287 853,045
C) TAXABLE PROFIT FUND
The company showed the following taxable profits to be distributed:
2004 2003
Thou Ch$ Thou Ch$
---------- -----------
Generated to 31.12.1983:
Profit Adjustment 1,909,034 1,909,034
Generated since 01.01.1984:
Without Credit 1,927,678 1,072,115
With 10% First Category Credit 22,604 22,694
With 15% First Category Credit 85,494,024 92,502,240
With 16% First Category Credit 14,420,569 16,906,651
With 15% Additional Rate Credit 722 722
With 16.5% First Category Credit 7,535,097 5,950,023
With 17% First Category Credit 4,612,724 0
----------- -----------
SUBTOTAL TAX PROFITS 114,013,418 116,454,445
Non-income revenues 6,798,030 6,825,087
----------- -----------
Total earnings to distribute 120,811,448 123,279,532
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
DEFERRED TAXES
03-31-2004 03-31-2003
--------------------------------------- -----------------------------------------
Item Asset Deferred Liability Deferred Asset Deferred Liability Deferred
Tax Tax Tax Tax
---------------------- ------------------ ------------------ ----------------- ---------------------
Short Long Short Long Short Long Short Long
term Term Term Term Term Term Term Term
-------- ------- ------ --------- ------- -------- ------- ----------
Temporary Differences
Reserve non-
collectable accounts 24,331 0 0 0 23,616 0 0 0
Expected revenue 0 0 0 0 0 0 0 0
Vacation reserve 45,326 0 0 0 29,949 0 0 0
Amortization intangibles 0 0 0 0 0 0 0 0
Leased assets 0 0 0 0 0 0 0 0
Manufacturing expenses 0 0 0 0 0 0 0 0
Fixed asset depreciation 0 0 0 4,599,989 0 14,781 0 4,484,098
Severance 1,510 143,689 0 0 2,131 148,063 0 0
Other events 0 0 0 0 0 0 53,357 583,339
Packaging reserve 174,115 0 0 0 172,496 0 0 0
Machinery repair reserve 0 0 0 0 0 0 0 0
Furnace repair reserve 0 646,311 0 0 193,105 354,571 0 0
Refractories obsolescence
reserve 6,967 0 0 0 6,762 0 0 0
Spare parts obsolescence
reserve 100,106 0 0 0 97,163 0 0 0
Deferred customs duties 116,369 20,334 0 75,915 2,305 592 0 83,578
Accumulated depreciation
automoviles 0 18,596 0 0 0 0 0 0
Unrealized profit 32,440 7,993 0 0 0 61,912 0 0
Fixed asset, molds 0 0 0 248,990 0 0 0 276,739
Lower valued bonds 0 0 53,428 522,707 0 0 0
OTHERS
Complementary accounts-net
amortization 0 7,820 0 2,271,268 0 19,783 0 2,487,808
Valuation reserve 0 0 0 0 - -
Total 501,164 829,103 53,428 3,176,333 527,527 560,136 53,357 2,939,946
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
INCOME TAX
ITEM 03-31-2004 03-31-2003
---------------- ---------- ----------
Current tax costs (tax reserve) -787,703 -915,347
Adjustment tax cost (previous year) 0 0
Effect on assets or liabilities
from deferred tax of fiscal year 360,760 -87,429
Tax benefit from tax losses 0 0
Effect of amortization of complementary
accounts of deferred assets and -56,627 -26,668
liabilities
Effect on assets or liabilities of
deferred tax for changes in 0 0
evaluation reserve
Other debits or credits in the account 0 0
---------- ----------
Total -483,570 -1,029,444
09. Short-term and long-term leasing contracts and leasing assets (note
required only for leasing companies defined in circular No. 939 of 1990).
As of March 31, 2004 and 2003, there are no transactions for this concept.
10. Other current assets
As of March 31, 2004, investments in financial instruments for Th Ch$
11,687,366, with resale agreements, valued as stated in note 2 p) for Th Ch$
8,905,923 corresponding to agreements in pesos, and agreements in US$ under 90
days for Th$ 2,781,443.
On March, 2004 Th Ch$ 323,811 are included corresponding to issuance expenses
and rate placement difference of bonds series C and D.
As of March 31, 2003, there was a balance of investments in financial
instruments, with resale agreements, valued as stated in note 2 p) for Th
Ch$ 5,754,702 corresponding to agreements in pesos for Th Ch$ 3,220,677, and
agreements in US$ under 90 days for Th$ 2,534,025.
There was a balance for Th Ch$ 323,377 which correspond of expenses for the
issue of bond series C and D.
11. Information on operations involving purchase agreements, sales
agreements, sale with buyback agreement, and purchase with sellback
agreement of commercial paper or bearer securities
Information about these transactions is presented on attached charts.
CRISTALERIAS DE CHILE S.A.
NOTE 11 - Information on operations involving purchase agreements, sales
agreements, sale with buyback agreement, and purchase with sellback agreement
of commercial paper or bearer securities Sale Operations with buyback
agreement (VRC) and Purchase with resale agreement (CRV)
Original Price Rate Final Value Document ID Market
Dates Counterpart Currency Set Value
Code ----------------------- -------------------- -------- --------- ----- ----------- ----------- ----------
Start End
---------- ----------
CRV 03.31.2004 04.07.2004 BANCO SANTANDER DOLLAR 2,781,443 1.65 2,725,913 PRD-PDBC 2,781,443
CRV 03.26.2004 04.01.2004 SANTANDER INVESTMENT Pesos 3,500,000 0.11 3,500,770 PDBC-PRD 3,500,642
CRV 03.29.2004 04.02.2004 BANCO DE CHILE Pesos 1,460,000 0.18 1,460,350 PRC 1,460,175
CRV 03.30.2004 04.05.2004 SANTANDER INVESTMENT Pesos 2,120,000 0.15 2,120,636 PRC-BCD 2,120,106
CRV 03.31.2004 04.06.2004 BCO. CRED. INV.
CORREDORES BOLSA Pesos 1,825,000 0.16 1,825,584 BCP-PDBC 1,825,000
12. Fixed Assets
Fixed Assets:
The Fixed Assets are shown at purchase cost plus the legal and regulatory
revaluations accumulated as of March 31, 2004 and 2003.
The items that make up the Company's fixed assets as of March 31, 2004 and
2003 include mainly Land, Industrial Constructions, Infrastructure Works,
Machinery and Equipment distributed in the Padre Hurtado Plant.
Technical Reappraisal and Adjustment of Accounting Values
The company carried out a technical reappraisal of its fixed assets in 1979.
Likewise, in June 1986 it adjusted those assets. Both operations were carried
out according to the provisions established in Circular Letters No. 1529 and
No. 550 respectively of the Securities and Insurance Commission.
The effects of these operations, including write-offs of property, are shown
on the attached chart.
Depreciations:
The charge against results for this item is Th Ch$ 2,589,390 in 2004 and Th
Ch$ 2,301,569 in 2003.
The detail is shown on an attached chart.
FIXED ASSETS
-------------------------------
2004 2003
Th Ch$ Th Ch$
------------ ------------
LAND
Land & mining claims 1,495,201 1,497,493
Subtotal land 1,495,201 1,497,493
Subtotal land 1,495,201 1,497,493
CONSTRUCTIONS & INFRASTRUCTURE
High rises and industrial const. 13,312,757 13,301,928
Facilities 9,213,040 8,748,126
Housing developments 26,081 26,083
Subtotal constructions & 22,551,878 22,076,137
infrastrucrture
Accumulated depreciation (10,142,152) (8,859,417)
Depreciation for the fiscal year (324,059) (318,503)
Subtotal depreciation (10,466,211) (9,177,920)
SUBTOTAL CONSTRUCTIONS &
INFRASTRUCTURE 12,085,667 12,898,217
MACHINERY & EQUIPMENT
Machinery 55,817,770 47,730,021
Furnaces 46,032,554 35,912,456
Furniture and Materials 1,345,809 1,224,294
Tools 408,311 349,151
Vehicles 210,365 219,467
Subtotal Machinery & equipment 103,814,809 85,435,389
Accumulated depreciation (49,200,324) (40,775,943)
Depreciation for the fiscal year (2,213,446) (1,931,177)
Subtotal depreciation (51,413,770) (42,707,120)
Subtotal machinery & equip 52,401,039 42,728,269
OTHER FIXED ASSETS
Spare parts 5,608,473 5,394,574
Imports in transit 146,511 773,449
Works underway 945,553 7,079,643
Lots in Pirque and Leyda 447,233 472,652
Other 534,391 357,248
Subtotal other assets 7,682,161 14,077,566
TOTAL FIXED ASSETS 135,544,049 123,086,585
TOTAL ACCUMUL. DEPREC. (59,342,476) (49,635,360)
TOTAL DEPREC FOR F. YEAR (2,537,505) (2,249,680)
TOTAL NET FIXED ASSETS 73,664,068 71,201,545
TECHNICAL REVALUATION AND ADJUSTMENT OF ACCOUNTING VALUES
2004 2003
Th Ch$ Th Ch$
---------- ----------
LAND
Land and mining claims 311,360 311,374
Subtotal land and mining claims net 311,360 311,374
CONSTRUCTIONS & INFRASTRUCTURE
High rises and industrial constructions 6,221,315 6,221,626
Facilities 41,118 41,120
Subtotal Constructions 6,262,433 6,262,746
Accumulated depreciation (5,035,336) (4,828,036)
Depreciation for the fiscal year (51,885) (51,889)
Subtotal depreciations (5,087,221) (4,879,925)
Subtotal Constuctions & Infrastucture net 1,175,212 1,382,821
MACHINERY & EQUIPMENT
Furnaces 0 526,694
Machinery 0 574,817
Tools 0 0
Furniture and Materials 0 0
Subtotal Machinery & equipment 0 1,101,511
Accumulated depreciation 0 (1,101,511)
Depreciation for the fiscal year 0 0
Subtotal depreciation 0 (1,101,511)
Subtotal machinery & equip 0 0
Total Net Technical Revaluation 1,486,572 1,694,195
TOTAL REVALUATED ASSET 6,573,793 7,675,631
TOTAL ACCUMULATED DEPRECIATION (5,035,336) (5,929,547)
TOTAL DEPRECIATION FOR YEAR (51,885) (51,889)
TOTAL NET 1,486,572 1,694,195
13. Sales transactions with leaseback
These type of transactions were not carried out as of March 31, 2004 and 2003.
14. Investments in related companies
The Company has valued its investments in related companies according to the
norms indicated in note 2 n).
CIECSA S.A.
On April 20, 2000 the Shareholders of Ciecsa S.A. agreed to increase its
equity by the equivalent to UF 359,921 through the issue of 343,750,000 shares
that were fully subscribed by Cristalchile S.A. On April 18, 2003 the
subscription was paid. On August 26, 2003 it was agreed to increase
CIECSA's capital by Th Ch$ 910,000, through the issue of 36,400,000 shares
totally suscribed and paid by Cristalchile, with which the participation in
the subsidiary increased to 98.45%.
CRISTALCHILE INVERSIONES S.A.
This company was formed at the end of 2001 in which Cristalerias de Chile S.A.
has a 99.99% share of the equity. Cristalchile Inversiones S.A., in turn,
registers a 40% investment in Rayen Cura S.A.I.C., a company constituted in
the city of Mendoza, Republic of Argentina.
On January 31, April 25 and June 30 of 2003 Rayen Cura S.A.I.C. made capital
reimbursements of part of a capital increase paid on April 29, 2002.
Reimbursed amounts totaled Th US$ 2,600.
As of March 31 the financial statements of Rayen Cura S.A.I.C. have recognized
an exchange rate of $ 2.84 Argentine pesos per US Dollar. CristalChile
Inversiones S.A., in turn, has adjusted the financial statements of Rayen Cura
S.A.I.C. in order to acknowledge the variation occurred from $2.91 Argentine
pesos (exchange rate used as of December 31, 2003) and $2.84 Argentine pesos
per US dollar as of March 31, 2004.
As an effect of the result of this affiliate and the conversion of the
financial statements of Rayen Cura S.A.I.C., according to chilean normative,
CristalChile Inversiones S.A., has recognized a Th Ch$ 237,283 income as of
March 31, 2004, and a Th Ch$ 167,109 income as of March 31, 2003.
On the other hand, the dollar exchange rate variation during the 2004 and 2003
fiscal years originated a Th Ch$ 697,051 credit in 2004 and a Th Ch$ 278,770
credit in 2003 in the item Other Equity Reserves, for the investment in Rayen
Cura S.A.I.C. and from the negative goodwill produced by the purchase of
shares of that company.
CRISTALCHILE COMUNICACIONES S.A.
On September 29, 2004 the Shareholders agreed to increase the company's
equity by issuing 3,861,538 shares, without nominal value, at a value of Ch$
650 each, which represents Th Ch$ 2,510,000.
Such increase was suscribed and paid by Cristalerias de Chile S.A., with which
its participation in the company's equity reaches 99.998%.
S.A. VINA SANTA RITA
As of March 31, 2004, the company has registered an unrealized income of Th
Ch$ 101,619 (Th Ch$ 52,896 in 2003), corresponding to container sales to the
the subsidiary S.A. Vina Santa Rita.
As of March 31, 2004, the accumulated balance for this item totaled Th Ch$
298,224 (Th Ch$ 358,116 in 2003).
CRISTALERIAS DE CHILE S.A.
NOTE 14 - INVESTMENTS IN RELATED COMPANIES
DETAIL OF INVESTMENTS
Country Investment Number of Shareholder Company Net
R.U.T. Company of Control Shares (Percentage) Equity Income
Origin Currency --------------------- ----------------------- ----------------------
03-31-2004 30-31-2003 03-31-2004 03-31-2003 03-31-2004 03-31-2003
---------- ---------------- ------- --------- ----------- ---------- ---------- ---------- ---------- ---------- ----------
96721580-5 Cristalchile Chile Peso 105,074,698 99.99820 99.99820 68,554,402 71,342,238 -2,150,868 -1,504,834
Comunicaciones
S.A.
86547900-K S.A. Vina Santa Chile Peso 493,959,797 54.09700 54.09700 80,970,562 81,035,529 1,382,606 1,204,929
Rita S.A.
86881400-4 Envases CMF S.A. Chile Peso 28,000 50.00000 50.00000 32,865,650 32,696,854 372,423 546,135
96608270-4 Ciecsa S.A. Chile Peso 689,301,305 98.44580 98.27370 18,042,622 13,531,106 -300,380 -444,879
96767580-6 Constructora Chile Peso 800,000 80.00000 80.00000 4,690 5,823 -15 -306
Apoger S.A.
96826870-8 Inmobiliaria Don Chile Peso 3,817 38.17000 38.17000 -118 34 0 0
Alberto S.A.
96972440-5 Cristalchile Chile Peso 9,999 99.99000 99.99000 -3,059,590 -465,023 187,512 134,635
Inversiones S.A.
TOTAL
Invest-
Country ment Result of Income not Book value
R.U.T. Company of Control Accrual VPP Realized of Investment
Origin Currency --------------------- ----------------------- ---------------- -----------------------
03-31- O3-31- 30-31- 03-31- 03-31- 03-31- 03-31- 03-31
2004 2003 2004 2003 2004 2003 2004 2003
---------- --------------- ------ -------- ---------- ---------- ----------- ----------- -------- ------- ---------- ------------
96721580-5 Cristalchile Chile Peso -2,150,828 -1,504,804 66,402,318 71,340,811 0 0 66,402,318 71,340,811
Comunicaciones
S.A.
86547900-K S.A. Vina Chile Peso 747,948 651,830 44,550,601 43,837,790 298,224 358,116 44,252,377 43,479,674
Santa
Rita S.A.
86881400-4 Envases
CMF S.A. Chile Peso 186,212 273,067 15,969,037 16,348,427 0 0 15,969,037 16,348,427
96608270-4 Ciecsa S.A. Chile Peso -295,711 -437,172 17,466,559 13,297,519 212,883 245,646 17,253,676 13,051,873
96767580-6 Constructora Chile Peso -12 -245 3,740 4,658 0 0 3,740 4,658
Apoger S.A.
96826870-8 Inmobiliaria Chile Peso 0 0 -45 13 0 0 -45 13
Don Alberto
S.A.
96972440-5 Cristalchile Chile Peso 187,493 129,620 1 0 0 0 1 0
Inversiones
S.A.
TOTAL 144,392,211 144,829,218 511,107 603,762 143,881,104 144,225,456
15. Investments in other companies
As of March 31, 2004 and 2003 there are no investments in other companies.
16. Goodwill Amortization
NEGATIVE GOODWILL
Stock purchases made on years 1993 and 1999 of S.A. Vina Santa Rita and Ciecsa
S.A., have produced negative goodwill whose net balance to be amortized as of
March 31, 2004 totaled Th Ch$ 1,840,523 (Th Ch$ 2,011,178 in 2003).
POSITIVE GOODWILL
As of March 31, 2004 and 2003 there are no transactions for this concept.
CRISTALERIAS DE CHILE S.A.
NOTE 16 - GOODWILL ON INVESTMENTS
Negative Goodwill
03-31-2004 03-31-2003
---------------------- -------------------------
Balance Balance
Amount of Amount of
R.U.T. Company Name Amortiz. Negative Amortiz. Negative
this period Goodwill this period Goodwill
---------- --------------- ----------- --------- ------------- -----------
86547900-K S.A. Vina
Santa Rita 12,482 543,761 12,482 593,717
96608270-4 Ciecsa S.A. 30,157 1,296,762 30,159 1,417,461
TOTAL 42,639 1,840,523 42,641 2,011,178
17. Intangibles
As of March 31, 2004 and 2003 there are no values for these concepts.
18. Other (Assets)
As of March 31, 2004, the sum of Th Ch$ 8,272,222 (Th Ch$ 9,817,535 in 2003)
for investments in Bonds of Celulosa Arauco y Constitucion S.A., equivalent to
US$ 13,420,000 at an annual rate of 6.95%, with maturity on March 15, 2005, is
included in Other Long-term Assets and Th Ch$ 46,601 (Th Ch$ 170,716 in 2003)
for overprice paid in the acquisition of these bonds, which are amortized in
the same term of their maturity.
Considering that there is the intention of maintaining the Celulosa Arauco y
Constitucion S.A. bonds until their maturity on September 15, 2005, the
valuation and registration of the bonds fulfills the provisions in Circular
Letter No. 368 of the S.V.S., as Long-term Fixed Rate Instruments according to
the investment value, plus interests and adjustments accrued at the end of the
fiscal year.
As of March 31, 2004 there is a balance for issuance expenses of bond series C
and D of Cristalerias for Th Ch$ 854,826 (Th Ch$ 982,322 in 2003), and the
negative goodwill produced as a result of their placement of Th Ch$ 2,219,922
(Th Ch$ 2,414,627 in 2003).
19. Short-term obligations with banks and financial institutions
a) Short-term obligations with Banks and Financial Institutions (5.21.10.10).
As of March 31, 2004 and 2003, there are not short-term bank obligations.
b) Long-term obligations with Banks and Financial Institutions (5.21.10.20).
A list of operations is shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 19 - OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS, SHORT TERM
Type of Currency and Readjustment Index
Other
Foreign
Dollars Euros Yens Currencies U.F.
R.U.T. Bank or Financial ---------------- ------------- --------------- -------------- --------------
Institution
03-31- 03-31- 03-31- 03-31- 03-31- 03-31- 03-31- 03-31- 03-31- 3-31-
2004 2003 2004 2003 2004 2003 2004 2003 2004 2003
----- ----------------- ------- ------- ------ ----- ------ ------ ------ ----- ------ -----
Short term (code: 5.21.10.10)
Long Term - Short Term (code: 5.21.10.20)
0-E J.P Morgan Chase Bank 129,318 445,744 0 0 0 0 0 0 0 0
Others 0 0 0 0 0 0 0 0 0 0
TOTAL 129,318 445,744 0 0 0 0 0 0 0 0
Capital amount due 0 0 0 0 0 0 0 0 0 0
Average annual interest rate 1.9875 2.675 0 0 0 0 0 0 0 0
Percentage oblig. foreign curr. (%) 100.0000
Percentage oblig. foreign curr. (%) 0.0000
Non adjustable $ Total
R.U.T. Bank or Financial ---------------- ------------------
Institution
03-31- 03-31- 03-31- 03-31-
2004 2003 2004 2003
----- ----------------- ------- ------- ------ -------
Short term (code: 5.21.10.10)
Short term (code: 5.21.10.10)
Long Term - Short Term (code: 5.21.10.20)
0-E J.P Morgan Chase Bank 0 0 129,318 445,744
Others 0 0 0 0
TOTAL 0 0 129,318 445,774
Capital amount due 0 0 0 0
Average annual interest rate 0 0 0 0
Percentage oblig. foreign curr. (%)
Percentage oblig. foreign curr. (%)
20. Other Current Liabilities
As of March 31, 2004, a positive balance of Th Ch$ 1,765,784 (Th Ch$ 897,794
in 2003) in favor of financial institutions was produced, as a consequence of
Future Contracts subscribed by the Company, more detail of these is shown in
note 34 Derivative Contracts.
21. Long term liabilities with banks and financial institutions
The obligations with banks and financial institutions are presented on the
charts attached.
CRISTALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Long-term Obligations With Banks and Financial Institution
Maturity
-----------------------------------------------------------------------------------
More than 10 years
----------------------
Bank or Adjustment From 1 From 2 From 3 From 5
Financial index to 2 to 3 to 5 to 10 Amount Term
R.U.T. Institution currency M$ M$ M$ M$ M$
------ ---------------------- ------------- -------- ---------- ---------- ---------- ---------- ----------
0-E J.P. Morgan Chase Bank Dollars - 15,410,250 15,410,250 - - -
Euros - - - - - -
Yen - - - - - -
UF - - - - - -
Non-adj.Ch$ - - - - - -
Others - - - - - -
Total - 15,410,250 15,410,250 - - -
Porcentaje de obligaciones en moneda extranjera 100.00%
Porcentaje de obligaciones en moneda nacional 0.00%
Closing date Closing date
Maturity Current period Previous period
------------- ---------------------------- ---------------
Total Total
Long-Term Average Long-Term
Bank or Adjustment at closing of annual at closing of
Financial index Financial interest Financial
R.U.T. Institution currency Statements rate Statements
------ ---------------------- ------------- ------------- -------- ---------------
0-E J.P. Morgan Chase Bank Dollars 30.820.500 1.9875 36.578.000
Euros - - -
Yen - - -
UF - - -
Non-adj.Ch$ - - -
Others - - -
Total 30.820.500 36.578.000
Porcentaje de obligaciones en moneda extranjera
Porcentaje de obligaciones en moneda nacional
22. Short-term and long-term obligations with the public
(promissory notes and bonds)
As of March 31, 2004, there are obligations with the public for bonds
issued of UF 4,100,000, equivalent to Th Ch$ 68,965,362 (Th Ch$ 68,812,760 in
2003) divided in series C1, C2, D1 and D2, with a 4.75% annual interest in
series C and 5.80% in series D, presented in the long term.
In the short term there is a balance of Th Ch$ 759,861 (Th Ch$ 748,203 in
2003) corresponding to accrued interests for UF 45,173.81.
Bond series C has a maturity of 6 years with amortizations beggining 2 years
from the date of issuance. Bond series D up to 21 years with amortizations
after 6 years.
Cristalerias de Chile S.A.
NOTE 22: SHORT-TERM AND LONG-TERM OBLIGATIONS WITH PUBLIC (PROMISSORY
NOTES AND BONDS)
BONDS
REGISTRATION OR SERIES CURRENT INDEXING INTEREST FINAL
IDENTIFICATION No. FACE VALUE UNIT OF BOND RATE MATURITY
OF INSTRUMENT
------------------------------- ------------ ---------- ------------ -------- ----------
LONG-TERM BONDS-CURRENT PORTION
296-09.07.02 C1 Interests 0 UF 4.75 07-15-2004
296-09.07.02 C2 Interests 0 UF 4.75 07-15-2004
296-09.07.02 D1 Interests 0 UF 5.80 07-15-2004
296-09.07.02 D2 Interests 0 UF 5.80 07-15-2004
TOTAL CURRENT PORTION
LONG-TERM BONDS
296-09.07.02 C1 1,500,000 UF 4.75 07-15-2008
296-09.07.02 C2 500,000 UF 4.75 07-15-2008
296-09.07.02 D1 1,900,000 UF 5.80 07-15-2023
296-09.07.02 D2 200,000 UF 5.80 07-15-2023
LONG-TERM TOTAL
INSTALLMENTS PAR VALUE
-------------------------- ------------------------
REGISTRATION OR ISSUE
IDENTIFICATION No. INTEREST AMORTIZATION IN CHILE OR
OF INSTRUMENT SERIES PAYMENT PAYMENT 09-30-2004 09-30-2003 ABROAD
------------------------------- ------------ ----------- ------------ ---------- ---------- -----------
LONG-TERM BONDS-CURRENT PORTION
296-09.07.02 C1 Interests SEMI-ANNUAL SEMI-ANNUAL 250,078 246,241 LOCAL
296-09.07.02 C2 Interests SEMI-ANNUAL SEMI-ANNUAL 83,359 82,080 LOCAL
296-09.07.02 D1 Interests SEMI-ANNUAL SEMI-ANNUAL 385,812 379,893 LOCAL
296-09.07.02 D2 Interests SEMI-ANNUAL SEMI-ANNUAL 40,612 39,989 LOCAL
TOTAL CURRENT PORTION 759,861 748,203
LONG-TERM BONDS
296-09.07.02 C1 SEMI-ANNUAL SEMI-ANNUAL 25,231,230 25,175,400 LOCAL
296-09.07.02 C2 SEMI-ANNUAL SEMI-ANNUAL 8,410,410 8,391,800 LOCAL
296-09.07.02 D1 SEMI-ANNUAL SEMI-ANNUAL 31,959,558 31,888,840 LOCAL
296-09.07.02 D2 SEMI-ANNUAL SEMI-ANNUAL 3,364,164 3,356,720 LOCAL
LONG-TERM TOTAL 68,965,362 68,812,760
23. Provisions and Write-offs
Provisions:
As of March 31, 2004, the Company has short-term provisions of Th Ch$
6,872,724 and Th Ch$ 4,653,280 in 2003.
In the Long-term, provisions are recorded of Th Ch$ 6,001,842 as of March 31,
2004 and Th Ch$ 6,063,280 as of March 31, 2003.
In the annexed chart a detail of provisioned amounts is presented.
a) Bad Debt Reserves:
The Company has established a reserve for bad debts of Th Ch$ 143,127, and Th
Ch$ 143,127, respectively, as of March 31, 2004 and 2003.
This provision is deducted from the balance of debtors from sales, as stated
in note 5.
b) Vacation Provision:
The company has established a provision for the total cost of vacations
pending as of March 31, 2004 and 2003, as established in Technical Bulletin
No. 47 of the Accountants Association of Chile.
The net balance for this item amounts Th Ch$ 266,627 as of March 31, 2004 (Th
Ch$ 181,508 in 2003).
c) Provision for Furnace Reconstruction:
This provision is established throughout the useful life of the refractories
of each smelting furnace so their repair will not distort the result of the
fiscal year when the repairs are made.
The Company has established a provision for this item in the amount of Th Ch$
3,801,830 and Th Ch$ 3,268,385 as of March 31, 2004 and 2003, respectively.
An itemized list of the amounts provisioned is shown in the attached chart.
Cristalerias de Chile S.A.
Note Provisions and Write-offs 03/31/2004 03/31/2003
------------------------------ ---------- ----------
Short term
Packing for Client Return 965,535 1,024,731
Furnace Reconstruction 1,935,527 1,170,334
Board Share 359,723 879,269
Reserve Spare Parts 438,189 463,350
Legal Holiday 266,627 181,508
Severance Pay 182,055 171,373
Provision Subsidiary Losses 2,177,064 464,977
Provision Indirect Expenses 230,043 252,961
Other Provisions 317,961 45,255
--------- ---------
Total Short Term 6,872,724 4,653,758
Long term
Severance Pay 4,135,539 3,965,229
Furnace Reconstruction 1,866,303 2,098,051
--------- ---------
Total Long-Term 6,001,842 6,063,280
--------- ---------
24. Severance Payments
The reserve for severance payments to personnel is included at its current
value, as expressed in note 2 r). As of March 31, 2004 it totals Th Ch$
4,317,594 (Th Ch$ 4,136,602 in 2003).
As of March 31, 2004 and 2003 the parent company has paid severance payments
of Th Ch$ 70,729 and Th Ch$ 802 respectively, chargeable against the reserve.
25. Other long-term liabilities
As of March 31, 2004 and 2003 there are no values for this concept.
26. Minority interest
Not applicable to individual financial statements.
27. Changes in Equity
Activity in 2004 and 2003
The activity of the capital and reserve accounts in the fiscal years ended on
March 31, 2004 and 2003, are shown in the attached charts.
The detail of the item Other Reserves is the following:
2004 2003
--------- ---------
Th Ch$ Th Ch$
Future capital increases 4,671,348 4,464,029
Reserve for adjustment of value 1,486,571 1,694,196
of fixed assets
Adjustment for conversion difference 1,143,830 4,099,356
in investment in Rayen Cura S.A.I.C.
Difference VPP Sodex (217,163) (217,173)
--------- ----------
TOTAL OTHER RESERVES 7,084,586 10,040,408
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NET WORTH
Reserve Reserve
Paid-in capital Premium in Other Future
Items Capital revaluation sale of shares Reserves Dividends
----------------------------------------------- ----------- ----------- -------------- ----------- -----------
Balances as of 03-31-2004
Initial balance 65,396,749 0 27,874,377 6,421,900 123,160,119
Distribution result previous fiscal year 0 0 0 0 0
Final dividend previous fiscal year 0 0 0 0 0
Capital increases with cash stock issue 0 0 0 0 0
Reserves and/or Profits Capitalization 0 0 0 0 0
Development period Accumulated deficit 0 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 694,795 0
Eventual Dividend 0 0 0 0 0
Owner's equity Revaluation 0 -326,984 -139,372 -32,109 -615,800
Fiscal Year Result 0 0 0 0 0
Provisional Dividends 0 0 0 0 0
Final balances 65,396,749 -326,984 27,735,005 7,084,586 122,544,319
Balances as of 03-31-2003
Initial balance 64,749,257 0 27,598,393 9,713,099 114,912,655
Distribution result previous fiscal year 0 0 0 0 0
Final dividend previous fiscal year 0 0 0 0 0
Capital increases with cash stock issue 0 0 0 0 0
Reserves and/or profit Capitalization 0 0 0 0 0
Development period accumulated deficit 0 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 278,744 0
Owner's equity revaluation 0 323,746 137,992 48,565 574,563
Fiscal Year Result 0 0 0 0 0
Provisional Dividends 0 0 0 0 0
Final balances 64.749.247 323,746 27,736,385 10,040,408 115,487,218
Updated balances 64.749.257 323,746 27,736,385 10,040,408 115,487,218
Accumulated Provisional Devel. Fiscal
Items Results Dividends Period Deficit Year Result
----------------------------------------------- ----------- ----------- -------------- -----------
Balances as of 03-31-2004
Initial balance 0 0 0 0
Distribution result previous fiscal year 6,426,520 0 0 0
Final dividend previous fiscal year -958,080 0 0 0
Capital increases with cash stock issue 0 0 0 0
Reserves and/or Profits Capitalization 0 0 0 0
Development period Accumulated deficit 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 0
Eventual Dividend 0 0 0 0
Owner's equity Revaluation -27,342 0 0 0
Fiscal Year Result 0 0 0 2,566,553
Provisional Dividends 0 0 0 0
Final balances 5,441,098 0 0 2,566,553
Balances as of 03-31-2003
Initial balance 0 0 0 0
Distribution result previous fiscal year 17,660,662 0 0 0
Final dividend previous fiscal year -3,303,936 0 0 0
Capital increases with cash stock issue 0 0 0 0
Reserves and/or profit Capitalization 0 0 0 0
Development period accumulated deficit 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 0
Owner's equity revaluation 71,784 0 0 0
Fiscal Year Result 0 0 0 4,321,062
Provisional Dividends 0 0 0 0
Final balances 14,428,510 0 0 4,321,062
Updated balances 14,428,510 0 0 4,321,062
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN EQUITY - NUMBER OF SHARES
SERIES No. No. No.
SHARES SHARES SHARES
SUBSCRIBED PAID WITH VOTING
--------------- ---------- ---------- -----------
SINGLE 64,000,000 64,000,000 64,000,000
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH - CAPITAL (AMOUNT - TH CH$)
SERIES SUBSCRIBED PAID-IN
CAPITAL CAPITAL
--------------- ---------- ----------
SINGLE 65,396,749 65,396,749
28. Other Non-operating Income and Expenses
As of March 31, 2004 non-operating income amounted Th Ch$ 131,864 and Th Ch$
89,874 in 2003.
Non-operating expenses amounted to Th Ch$ 251,990 as of March 31, 2004 and Th
Ch$ 231,038 in fiscal year 2003.
More detail is shown in annexed chart.
Non-operating Income and Expenses
CRISTALERIAS DE CHILE S.A.
NOTE 28: OTHER NON-OPERATING INCOME AND EXPENSES
2004 2003
Th Ch$ Th Ch$
------- ------
INCOME
Offices and establishments rental 38,699 31,081
Sale of materials 4,591 4,753
Agricultural Division 0 20,846
Amortization of non-realized profits 8,188 8,188
Others Income 80,386 25,006
TOTAL NON-OPERATING INCOME 131,864 89,874
EXPENSES
Professional advice 154,309 156,592
Other expenses 85,140 63,755
Insurances 12,541 10,691
TOTAL NON-OPERATING EXPENSES 251,990 231,038
29. Price-level Restatement
As a result of the application of price-level restatement as described in Note
2 d), a net credit to results was generated in the 2004 and 2003 fiscal year
of Th Ch$ 153,682 and Th Ch$ 37,729 respectively.
Additional Balance-itemized information is shown in the annexed chart.
Cristalerias de Chile S.A.
NOTE 29: ADJUSTMENT FOR PRICE LEVEL RESTATEMENTS
ASSETS (CHARGES)/CREDITS ADJUSTABILITY 03-31- 03-31-
INDEX 2004 2003
----------------------------------------- ----------- --------- ---------
Consumer
Price
INVENTORY Index -9,907 50,850
FIXED ASSET CPI -382,974 372,056
INVESTMENTS IN RELATED COMPANIES CPI -742,591 732,936
MARKETABLE SECURITIES CPI -20,773 18,997
SHORT TERM DEBTORS CPI -808 800
ACCOUNTS RECEIVABLE RELATED COMPANIES UFI -121,857 51,766
LONG-TERM DEBTORS UF -983 725
LONG TERM DEPOSIT CPI 0 0
SHORT TERM DEBTORS UF 867 809
OTHER NON-MONETARY ASSETS CPI -25,154 15,280
EXPENSE AND COST ACCOUNTS CPI -280,253 190,942
TOTAL (CHARGES)/CREDITS - -1,584,433 1,435,161
LIABILITIES (CHARGES)/ CREDITS
NET WORTH CPI 1,141,608 -1,156,651
ACCOUNTS RECEIVABLE RELATED COMPANIES UF 33 -5
SHORT-TERM RESERVES CPI -364 -5,234
SHORT -TERM CREDITORS CPI 0 0
LONG-TERM RESERVES CPI -3,554 -20,061
PUBLIC OBLIGATION UF 406,638 -161,868
LONG-TERM CREDITORS CPI 196 -109
NON-MONETARY LIABILITIES CPI 12,547 373
INCOME ACCOUNTS CPI 181,011 -53,877
TOTAL (CHARGES)/ CREDITS - 1,738,115 -1,397,432
(LOSS) PROFIT FROM ADJUSTMENT FOR PRICE LEVEL RESTATEMENT 153,682 37,729
30. Exchange Differences
A net credit to results was produced due to exchange differences of Th Ch$
730,260 in 2004 and a net credit of Th Ch$ 1,335,641 in 2003.
According to the provisions in Circular Letter 1560 of the SVS of 09/20/2001,
the net effect of the adjustment of adjustable assets and liabilities in
foreign currency on results deducting the effect of inflation is presented in
this item.
Further information is shown on the table attached.
Cristalerias de Chile S.A.
NOTE 30: EXCHANGE DIFFERENCES
ITEM CURRENCY AMOUNT
---------------------------
03-31-2004 03-31-2003
------------------------------------ --------------- ----------- ----------
FIXED (CHARGES) /CREDITS
AVAILABLE DOLLARS 2,200 -144
MARKETABLE SECURITIES DOLLARS 1,118,588 974,083
MARKETABLE SECURITIES EUROS 334,861 0
TIME DEPOSITS DOLLARS 43,797 -102,492
INVENTORY DOLLARS 2,862 49,811
BONDS INSTALLMENT DOLLARS 305,398 231,941
SUNDRY DEBTORS DOLLARS 2,385 0
OTHER ASSETS DOLLARS 81,368 6,482
EFFECT OF FUTURE CONTRACT DOLLARS -16,757 1,142,534
EFFECT OF INFLATION DOLLARS 135,607 -170,436
TOTAL (CHARGES) /CREDITS 2,010,309 2,131,779
LIABILITIES (CHARGES) /CREDITS
SHORT- TERM BANK LOANS DOLLARS 0 0
NOTES PAYABLE DOLLARS -58,933 -2,528
NOTES PAYABLE OTHER CURRENCY 0 0
SUNDRY CREDITORS - SHORT TERM DOLLARS -25,108 -13,638
LONG- TERM BANK LOANS DOLLARS -1,130,500 -647,500
SHORT-TERM RESERVES DOLLARS 0 -58,133
LONG-TERM RESERVES DOLLARS -136,718 -28,590
SUNDRY CREDITORS - LONG TERM DOLLARS -4,387 -3,505
OTHER LIABILITIES DOLLARS 75,597 -42,244
ADJUSTMENT FUTURE CONTRACTS DOLLARS 0 0
INFLATIONARY EFFECT DOLLARS 0 0
TOTAL (CHARGES)/ CREDITS -1,280,049 -796,138
(LOSS) PROFIT FROM EXCHANGE DIFFERENCE 730,260 1,335,641
31. Extraordinary Items
As of March 31, 2004, there are no transactions for this item.
32. Expenses incurred in the sale of shares and debt instruments
On August, 2002 the company placed bond series C1, C2, D1 and D2 for UF
4,100,000, which resulted in expenses and rate placement difference which
balance as of March 31, 2004 amounts Th Ch$ 3,398,559 (Th Ch$ 3,720,326 in
2003). Amortization is being done according to the maturity of each series.
Classified under current assets there are Th Ch$ 323,811 (Th Ch$ 323,377 in
2003) and Th Ch$ 3,074,748 (Th Ch$ 3,396,949 in 2003) under other long-term
fixed assets.
As of March 31, 2004 and 2003, the charge to results for their amortization
amounts Th Ch$ 81,679 and Th Ch$ 80,986, respectively.
33. Cash Flow Statement
An itemized list is included in the attached chart.
CRISTALERIAS DE CHILE S.A.
CASH FLOW STATEMENT
1. The following is the detail of the item OTHERS:
2004 2003
------- -------
Th Ch$ Th Ch$
541.11.40 Other income received
Insurance severance 0 0
Discount for Custom Duties 7,376 0
Accountent Return 0 133,416
Adjustment Received 128,298 0
Other income 47,006 1,201
Total 182,680 134,617
541.11.80 Other expenses paid
Exchange differences 26,047 168,532
Donations 26,794 7,770
Other expenses 0 1,528
Total 52,841 177,830
541.13.30 Other investment income
Maturity of future contracts 0 967,805
0 967,805
541.13.65 Other investment disbursements
Purchase of shares 0 11,680
Total 0 11,680
Following are financing and investment activities that did not generate cash
flow during the fiscal year, but that commit future cash flows:
ITEM Amount Th Ch$ Maturity
-------------------------- ------------- --------------------
Dividend No.157 (1,612,800) April-2004
Payable investment imports (113,317) Second Semester 2004
-----------
TOTAL (1,726,117)
34. Derivative Contracts
As of March 31 2004 and 2003 the parent company has signed future purchase and
sell contracts in foreign currency of Th US$ 37,600 in 2004 (purchases of Th
US$ 109,600 in 2003) subject to the regulations of Chapter VII of the
Compendium of International Exchange Regulations of the Central Bank of Chile
and Chapter 13-2 of the compilation of Regulations of Banks and Financial
Institutions.
As of March 31, 2004 there was a difference in favor of financial institutions
of Th Ch$ 1,765,784, classified under Other Current Liabilities.
As of March 31, 2003 there was a difference in favor of financial institutions
of Th Ch$ 897,794 classified under Other Current Assets.
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS
DESCRIPTION OF CONTRACTS
----------------------------------------------
PROTECTED ITEM
OR TRANSACTION
--------------
TYPE OF TYPE OF VALUE OF MATURITY OR PURCHASE/
DERIVATIVE CONTRACT CONTRACT EXPIRATION SPECIFIC SALE
DATE ITEM POSITION NAME AMOUNT
----------- -------- ---------- ----------- ------------- --------- ---- ------
FR CI 23,177,016 THIRD 2004 EXCHANGE RATE P - 0
FR CI 21,327,786 THIRD 2004 EXCHANGE RATE S - 0
ACCOUNTS AFFECTED
---------------------------------------------------------
ASSETS/LIABILITY EFFECT ON RESULT
-------------------------- --------------------------
TYPE OF TYPE OF VALUE OF VALUE OF
DERIVATIVE CONTRACT CONTRACT PROTECTED
ITEM NAME AMOUNT REALIZED NOT REALIZED
----------- -------- ---------- ----------- -------------- --------- ---------- -------------
FR CI 23,177,016 0 LIABILITIES 2,729,917 -2,729,917 0
FR CI 21,327,786 0 ASSETS 964,133 964,133 0
Analysis of Forward Contracts in foreign currency as of 03.31.2004
DATE
---------------------------
FUTURE PROFIT
VALUE (Loss)
INSTITUTION Investment Maturity US$ Th Ch$
--------------------------------- ---------- -------- ----------- ------------
Purchases:
Citibank N.A. 09-08-03 09-02-04 2,000,000 (145,571)
Deutsche Bank (Chile) S.A 09-04-03 09-03-04 15,000,000 (1,180,180)
Bank Boston 09-10-03 09-06-04 2,000,000 (146,198)
Deutsche Bank (Chile) S.A. 09-08-03 09-07-04 2,000,000 (146,792)
Deutsche Bank (Chile) S.A. 09-08-03 09-07-04 1,800,000 (130,394)
Deutsche Bank (Chile) S.A. 09-10-03 09-09-04 2,800,000 (204,072)
Deutsche Bank (Chile) S.A. 09-10-03 09-09-04 2,000,000 (147,546)
Banco Chile 09-11-03 09-06-04 3,000,000 (201,578)
Banco Chile 09-15-03 09-09-04 3,500,000 (214,027)
Banco Santander 09-15-03 18-08-04 3,500,000 (213,561)
Total 37,600,000 (2,729,917)
Sales:
Bank Boston 10-14-03 09-09-04 4,800,000 146,643
Banco Santander 10-21-03 09-07-04 2,000,000 66,740
Deutsche Bank (Chile) S.A. 10-22-03 09-09-04 2,000,000 62,325
Banco Santander 10-22-03 09-09-04 1,500,000 47,342
Citibank N.A. 10-22-03 09-07-04 1,800,000 56,120
Deutsche Bank (Chile) S.A. 10-23-03 09-02-04 2,000,000 50,879
Banco Santander 10-23-03 09-03-04 6,000,000 154,770
Deutsche Bank (Chile) S.A. 10-24-03 09-03-04 2,000,000 44,999
Deutsche Bank (Chile) S.A. 10-24-03 09-03-04 2,000,000 45,504
Deutsche Bank (Chile) S.A. 10-24-03 09-03-04 1,000,000 23,257
Deutsche Bank (Chile) S.A. 10-24-03 09-03-04 1,000,000 23,509
Banco Santander 10-27-03 09-03-04 2,000,000 45,820
Deutsche Bank (Chile) S.A. 10-27-03 09-03-04 1,000,000 23,985
Deutsche Bank (Chile) S.A. 10-28-03 08-16-04 1,000,000 22,504
Banco Santander 10-28-03 08-16-04 2,500,000 57,081
Banco Santander 10-28-03 09-06-04 2,000,000 48,618
Deutsche Bank (Chile) S.A. 11-06-03 09-06-04 1,000,000 16,177
Banco Santander 11-12-03 09-06-04 1,000,000 15,576
Deutsche Bank (Chile) S.A. 11-18-03 09-06-04 1,000,000 12,285
Total 37,600,000 964,133
TOTAL 0 (1,765,784)
As of March 2003 there were dollar purchase contracts of US$ 109,600,000.
35. Contingencies and Restrictions
CONTINGENCIES AND COMMITMENTS
As of March 31, 2004, there is a guarantee delivered in the amount of Th Ch$
7,885 (Th Ch$ 7,868 in 2003), according to the detail in the attached chart.
LAWSUITS OR OTHER LEGAL ACTIONS THE COMPANY IS INVOLVED IN
As of March 31, 2004 and 2003 there are no lawsuits and other legal actions
pending.
RESTRICTIONS
I. SYNDICATED LOAN
In relation to the syndicated loan subscribed with JP Morgan Chase Bank and
other 8 creditor banks for US$ 50 million, there are certain financial
obligations mentioned as follows:
a) TOTAL CONSOLIDATED DEBT TO CAPITALIZATION RATIO
Cristalerias de Chile S.A will not allow the Total Consolidated Debt to
Capitalization Ratio exceed the 0.45 to 1.0 ratio at any time.
Capitalization is defined as the sum of Net Worth plus Minority Interest plus
total consolidated debt.
b) TOTAL CONSOLIDATED DEBT TO EBITDA RATIO
Cristalerias de Chile S.A will not allow the Net Consolidated Debt to EBITDA
ratio to exceed the 2.5 to 1.0 ratio at any time.
Consolidated EBITDA is defined as the following: operating income plus
depreciation and amortization, plus non-cash charges (as long as they have
been deduced when determining operating income) and cash income from interests
minus non-cash credits (as long as they have been added when determining
operating income), in each case for each period.
c) INTEREST COVERAGE RATIO
Cristalerias de Chile S.A. will not allow the Interest Coverage Ratio to be
lower than the following ratios during the following periods: 3.5 from January
01 2001 to December 31, 2003; 4.0 from January 01, 2004 onwards.
Interest coverage at the day of determination is defined as the ratio between
unconsolidated EBITDA for the period of four consecutive fiscal quarters that
end on or most recently ended before, that date; and interest expenses for
that period.
d) NET EQUITY
Cristalerias de Chile S.A. should maintain a minimum amount of UF 10,000,000
at any time.
As of March 2004 and 2003 Cristalerias de Chile S.A. complies with 100% of the
restrictions agreed with the creditor banks.
II. BOND ISSUE
The bond issue contract signed on May 29, 2002 with Banco de Chile as the
bonds owners' representative, establishes among others the following
obligations:
a) Financial Indicators
Individual Balance: Indebtedness not higher than 1.2 times.
Consolidate Balance: Indebtedness not higher than 1.4 times.
b) Insurances for the Company and its subsidiaries' fixed assets.
c) The operations refered to by art. 44 and 89 of law 18,046 must be
carried out according to the conditions that these establish.
d) Other minor restrictions related with the bond issue contract.
Cristalerias de Chile S.A. complies with 100% of restrictions agreed with the
bonds' creditors.
OTHER CONTINGENCIES
As of March 31, 2004 and 2003, management is not aware of any other
contingencies that could affect the company.
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - DIRECT GUARANTEES
BALANCES PENDING
PAYMENT AS OF
CLOSING DATE
DEBTOR ASSETS COMMITTED OF FINANCIAL STATEMENTS
----------------------------- ---------------------- -------------------------
CREDITOR OF NAME RELATIONSHIP TYPE OF BOOK
GUARANTEE GUARANTEE TYPE VALUE 03/31/2004 03/31/2003
----------------- --------------- ------------ ------------ ---------- ---------- ----------- -----------
EDIFICIO CRISTALERIAS DE COMMERCIAL DEPOSIT FLOOR 7.885 7.885 7,868
METROPOLIS AGF CHILE S.A.
DEBTOR RELEASE OF GUARANTEES
--------------- ----------------------------------------------------------------------
CREDITOR OF NAME
GUARANTEE 03/31/2005 ASSETS 03/31/2006 ASSETS 03/31/2007 ASSETS
----------------- --------------- ---------- --------- ---------- --------- ---------- ---------
EDIFICIO CRISTALERIAS DE - - - - 7,885 -
METROPOLIS AGF CHILE S.A.
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - INDIRECT GUARANTEES
BALANCES PENDING
PAYMENT AS OF
CLOSING DATE
DEBTOR ASSETS COMMITTED OF FINANCIAL STATEMENTS
----------------------------- ---------------------- -------------------------
CREDITOR OF NAME RELATIONSHIP TYPE OF BOOK
GUARANTEE GUARANTEE TYPE VALUE 03/31/2004 03/31/2003
----------------- --------------- ------------ ------------ ---------- ---------- ----------- -----------
Societe de Rayen Cura Affiliate Solidary - - 2,130,312 3,371,028
Participations S.A.
Financieres et
Industrielles
Envases CMF Cristalerias Affiliate Solidary - - 224,261 329,357
de Chile S.A.
DEBTOR RELEASE OF GUARANTEES
--------------- ----------------------------------------------------------------------
CREDITOR OF NAME
GUARANTEE 03/31/2005 ASSETS 03/31/2006 ASSETS 03/31/2007 ASSETS
----------------- --------------- ---------- --------- ---------- --------- ---------- ---------
Societe de Rayen Cura 710,104 - 710,104 - 710,104 -
Participations S.A.
Financieres et
Industrielles
Envases CMF Cristalerias - - - - 224,261 -
de Chile S.A.
36. Guarantees obtained from third parties
As of March 31, 2004 and 2003 the company has received guarantees from third
parties, which are shown below:
ITEM 2004 2003
------------------------------------------------ ------- ------
Th Ch$ Th Ch$
Real Estate Lease Security Bank (UF 304) 5,114 5,102
Real Estate Lease to Telecomunicaciones
and Servicios Cono Sur Ltda. (UF 130) 0 2,182
Real Estate Lease AGF Building (UF 365.9) 6,155 6,141
Real Estate Lease Metropolis Building (UF 189.2) 3,182 3,175
Suppliers Sight Drafts 1,674 1,675
------- ------
TOTAL 16,125 18,275
37. Local and Foreign Currency
Charts are attached showing the foreign currency balance as of March 31, 2004
and 2003.
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - ASSETS
Amount
----------------------------
ITEMS Currency 03-31-2004 03-31-2003
-------------------------- --------------- ----------- -----------
Current Assets
CASH Non-adjust Ch$ 1,214,370 848,275
CASH Dollars 155,852 127,519
TIME DEPOSITS Dollars 1,178,299 7,495,778
TIME DEPOSITS Non-adjust. Ch$ 3,452,208 8,934,092
MARKETABLE SECURITIES Adjustable Ch$ 4,133,777 3,830,015
MARKETABLE SECURITIES Dollars 30,809,517 55,361,469
DEBTORS FROM SALES Non-adjust. Ch$ 16,457,533 15,630,357
DOCUMENTS RECEIVABLE Non-adjust. Ch$ 886,438 1,785,525
MISCELLANEOUS DEBTORS Adjustable Ch$ 264,838 809,645
MISCELLANEOUS DEBTORS Non-adjust. Ch$ 254,285 156,541
MISCELLANEOUS DEBTORS Dollars 126,735 12,318
DOC.&ACTS. REC. REL. CO'S. Non-adjust. Ch$ 1,984,778 1,840,521
DOC.&ACTS. REC. REL. CO'S. Adjustable Ch$ 13,575 621,139
STOCK Adjustable Ch$ 4,402,696 3,295,288
STOCK Dollars 1,591,816 2,649,202
TAXES TO BE RECOVERED Adjustable Ch$ 1,876,287 853,045
EXPENSES PAID IN ADVANCE Dollars 356,831 398,419
DEFERRED TAXES Non-adjust Ch$ 447,736 474,170
OTHER CURRENT ASSETS Non-adjust Ch$ 9,033,071 3,347,825
OTHER CURRENT ASSETS Dollars 2,781,443 2,534,025
OTHER CURRENT ASSETS Adjustable Ch$ 196,663 196,229
MARKETABLE SECURITIES Non-adjust Ch$ 25,552 26,535
MARKETABLE SECURITIES Euros 18,897,271 0
Fixed Assets
FIXED ASSETS Adjustable Ch$ 75,150,640 72,895,740
Other Assets
INVESTMENT REL. CO'S. Adjustable Ch$ 143,881,104 144,225,456
NEG. INVESTMENT GOODWILL Adjustable Ch$ 1,840,523 2,011,178
LONG-TERM DEBTORS Adjustable Ch$ 122,386 161,203
L-T DOC. REC. REL. CO'S. Adjustable Ch$ 20,666,868 22,598,303
OTHERS Dollars 8,318,823 9,988,251
OTHERS Adjustable Ch$ 2,219,922 2,414,627
OTHERS Non-adjust Ch$ 854,826 982,322
Total Assets
Non-adjust Ch$ 34,610,797 34,026,163
Dollars 45,319,316 78,566,981
Adjustable Ch$ 254,769,279 253,911,868
Euros 18,897,271 0
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - CURRENT LIABILITIES
ITEM Currency Up to 90 days
---------------------------------- ---------------- ------------------------------------------------------------
03-31-2004 03-31-2003
------------------------ ---------------------------
Amount Avg.Annual Amount Avg.Annual
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
----------- ---------- ----------- ----------
Long-Term Obligations Dollars 129,318 1.9875 445,744 2.675
1-year maturity
Long-Term Obligations with public Adjustable Ch$ 333,437 4.75 328,321 4.75
Adjustable Ch$ 426,424 5.80 419,882 5.80
Dividend Payable Non-adjust. Ch$ 40,453 - 77,453 -
Accounts Payable Non-adjust. Ch$ 1,858,882 - 2,127,914 -
Documents Payable Dollars 1,504,799 - 4,142,922 -
Miscellaneous Creditors Dollars 684,524 11.06 770,446 12.25
Miscellaneous Creditors Non-adjust. Ch$ 175,430 - 587,381 -
Doc. and Accts. Payable rel Co Adjustable Ch$ 1,754 - 6,446 -
Doc. and Accts. Payable rel Co Non-adjust. Ch$ 178,527 - 140,145 -
Reserves Adjustable Ch$ 0 - 0 -
Reserves Dollars 0 - 0 -
Reserves Non-adjust. Ch$ 4,755,142 - 3,312,051 -
Withholding Non-adjust. Ch$ 895,484 - 743,989 -
Other Current Liabilities Adjustable Ch$ 1,765,784 - 897,794 -
Deferred taxes Non-adjust. Ch$ 0 0
Total Current Liabilities Dollars 4,084,425 - 6,256,906 -
Adjustable Ch$ 761,615 - 754,649 -
Non-adjust. Ch$ 7,903,918 - 6,988,933 -
ITEM Currency 90 Days to 1 Year
---------------------------------- ---------------- ------------------------------------------------------------
03-31-2004 03-31-2003
------------------------ ---------------------------
Amount Avg.Annual Amount Avg.Annual
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
----------- ---------- ----------- ----------
Long-Term Obligations Dollars - - - -
1-year maturity
Long-Term Obligations with public Adjustable Ch$ - - - -
Adjustable Ch$ - - - -
Dividend Payable Non-adjust. Ch$ - - - -
Accounts Payable Non-adjust. Ch$ - - - -
Documents Payable Dollars - - - -
Miscellaneous Creditors Dollars - - - -
Miscellaneous Creditors Non-adjust. Ch$ - - - -
Doc. and Accts. Payable rel Co Adjustable Ch$ - - - -
Doc. and Accts. Payable rel Co Non-adjust. Ch$ - - - -
Reserves Adjustable Ch$ 182,055 - 171,373 -
Reserves Dollars 1,935,527 - 1,170,334 -
Reserves Non-adjust. Ch$ - - - -
Withholding Non-adjust. Ch$ - - - -
Other Current Liabilities Adjustable Ch$ - - - -
Deferred taxes Non-adjust. Ch$
Total Current Liabilities Dollars 1,935,527 - 1,170,334 -
Adjustable Ch$ 182,055 - 171,373 -
Non-adjust. Ch$ 0 - 0 -
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES CURRENT
PERIOD 03-31-2004
ITEM Currency 1-3 Years 3-5 years
----------------------------- ---------------- ----------------------------- ----------------------------
Amount Average Amount Average
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
------------- ------------- ------------ -------------
Obligations with Banks and Dollars 15,410 1.9875 15,410,250 1.9875
Financial Institutions
Obligations with public bond Adjust. Ch$ 21,026 4.75 12,615,615 -
Serie C
Obligations with public bond Adjust. Ch$ 0 - 75,965 5.8
Serie D
Deferred Custom duties Dollars 119,614 11.6 0 -
Long-term Creditors Adjust. Ch$ 33,249 - 0 -
Long-term Reserves Dollars 1,866,303 - 0 -
Long-term Reserves Adjust. Ch$ 4,135,539 - 0 -
Deferred Taxes Non-adjust. Ch$ 2,347,230 - 0 -
Total Long-term Liabilities
Dollars 17,396,167 - 15,410,250 -
Adjust. Ch$ 25,194,813 - 12,691,580 -
Non-adjust. Ch$ 2,347,230 - 0 -
ITEM Currency 5-10 Years More than 10 years
----------------------------- ---------------- ----------------------------- ----------------------------
Amount Average Amount Average
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
------------- ------------- ------------ -------------
Obligations with Banks and Dollars 0 - 0 -
Financial Institutions
Obligations with public bond Adjust. Ch$ 0 - 0 -
Serie C
Obligations with public bond Adjust. Ch$ 4,937,743 5.8 30,310,014 5.8
Serie D
Deferred Custom duties Dollars 0 - 0 -
Long-term Creditors Adjust. Ch$ 0 - 0 -
Long-term Reserves Dollars 0 - 0 -
Long-term Reserves Adjust. Ch$ 0 - 0 -
Deferred Taxes Non-adjust. Ch$ 0 - 0 -
Total Long-term Liabilities
Dollars 0 - 0 -
Adjust. Ch$ 4,937,743 - 30,310,014 -
Non-adjust. Ch$ 0 - 0 -
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES PREVIOUS
PERIOD 03-31-2003
ITEM Currency 1-3 Years 3-5 years
----------------------------- ---------------- ----------------------------- ----------------------------
Amount Average Amount Average
Interest Rate Interest Rate
------------- ------------- ------------ -------------
Obligations with banks and Dollars 0 0 36,578,000 2.675
financial institutions
Obligations with public Adjustable Ch$ 0 0 0 0
Obligations with public Adjustable Ch$ 0 0 - -
Deferred Custom duties Dollars 198,004 11.6 - -
Long-term Creditors Adjust. Ch$ 44,377 - -
Long-term Reserves Dollars 2,098,052 - - -
Long-term Reserves Adjustable Ch$ 3,965,228 - - -
Deferred Taxes Non-adjust. Ch$ 2,379,810 - - -
Total Long-term Liabilities
- Dollars 2,296,056 - 36,578,000 -
- Adjust. Ch$ 4,009,605 - 0 -
- Non-adjust. Ch$ 2,379,810 - 0 -
ITEM Currency 5-10 Years More than 10 years
----------------------------- ---------------- ----------------------------- ----------------------------
Amount Average Amount Average
Interest Rate Interest Rate
------------- ------------- ------------ -------------
Obligations with banks and Dollars - - - -
financial institutions
Obligations with public Adjustable Ch$ 33,567,200 4.75 - -
Obligations with public Adjustable Ch$ - - 35,245,560 5.8
Deferred Custom duties Dollars - - - -
Long-term Creditors Adjust. Ch$ - - - -
Long-term Reserves Dollars - - - -
Long-term Reserves Adjustable Ch$ - - - -
Deferred Taxes Non-adjust. Ch$ - - - -
Total Long-term Liabilities
- Dollars 0 - 0 -
- Adjust. Ch$ 33,567,200 - 35,245,560 -
- Non-adjust. Ch$ 0 - 0 -
38. Penalties
As of March 31, 2004 and 2003 no penalties have been applied to the company,
the members of the Board or Company Managers by the SVS or other
administrative authorities.
39. Subsequent Events
Cristalerias de Chile S.A.
On April 28, 2004 the company paid eventual dividend N(degree) 157 of
Ch$ 25.20 per share over 64,000,000 shares. (Th Ch$1,612,800)
Between the closing date of the financial statements and the issue date of the
present report there have not been other subsequent events that could alter
significantly the Company's financial and economic situation.
40. Environment
On its permanent concern for preserving the environment, during the fiscal
year 2003 the Company has made investments of Th Ch$ 205,409 corresponding to
the purchase of NOX treatment equipment installed in new furnace B.
41. TIME DEPOSITS
As of March 31, 2004 and 2003 the Company presents the following information:
INSTITUTION Currency 2004 2003
Th Ch$ Th Ch$
Banco de A. Edwards (Chile) US$ 0 2,606,863
Banco Santander US$ 1,178,299 2,483,315
Banco Deutsche Bank Chile S.A. US$ 0 2,064,301
Banco J.P. Morgan Chase Bank US$ 0 341,299
Banco de A. Edwards (Chile) Ch$ 0 3,000,000
Banco Santander Ch$ 3,452,208 924,992
Banco Scotiabank Ch$ 0 5,009,100
--------- ---------
TOTAL 4,630,507 16,429,870
42. STOCK TRANSACTIONS
During 2004 and 2003 fiscal years members of the board, controlling
stockholders, related individuals and entities did not carry out stock
transactions.
43. DISTRIBUTION OF SHAREHOLDERS
The distribution of stockholders as of March 31, 2004 and 2003 is the
following:
% of Shareholding No. of Shareholders
TYPE OF SHAREHOLDER 2004 2003 2004 2003
10% or more shareholding 34.03 34.03 1 1
Less than 10% shareholding
with investment equal to or
higher than 200 UF 65.84 65.83 265 270
Less than 10% shareholding
with investment lower than
200 UF 0.13 0.14 762 787
TOTAL 100.00 100.00 1,028 1,058
CONTROLLER OF
THE COMPANY 52.14 52.14 3 3
44. BOARD COMPENSATION
As of March 31, 2004 and 2003, there are provisions for Th Ch$ 359,723 and Th
Ch$ 879,269 respectively, for diverse concepts according to the following
detail:
2004 2003
Th Ch$ Th Ch$
Participation in previous fiscal year profits 257,061 706,426
Board Committee Honoraries 102,662 172,843
--------- ---------
TOTAL 359,723 879,269
RELEVANT EVENTS
None.
-------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
-------------------------------------------------------------------------------
RATIO ANALYSIS TO INDIVIDUAL FINANCIAL STATEMENTS AS OF MARCH 31, 2004
-------------------------------------------------------------------------------
1.- FINANCIAL INDICATORS
03-31-2004 03-31-2003 12-31-2003
--------------------------------------------------------------------------------
LIQUIDITY
Current liquidity times 6.76 7.25 5.98
Acid ratio times 6.18 6.75 5.50
INDEBTEDNESS
Leverage ratio times 0.53 0.55 0.55
Short-term debt % 12.07 11.85 12.79
Long-term debt % 87.93 88.15 87.21
Interest Expenses Coverage times 3.18 4.98 2.14
ACTIVITY
Total assets MM Ch$ 353,597 366,505 351,798
Investments MM Ch$ 1,527 4,924 22,510
Disposal of property MM Ch$ 1 57 135
Inventory turnover times 7.4 10.5 12.6
Inventory permanence days 49.0 34.4 28.6
RESULTS
Sales MM Ch$ 15,387 17,448 74,146
Costs of sales MM Ch$ 9,791 10,363 44,413
Operating result MM Ch$ 4,289 5,850 24,225
Interest expenses MM Ch$ 1,158 1,235 4,817
Non-operating result MM Ch$ (1,239) (499) (16,374)
E.B.I.T.D.A. MM Ch$ 6,318 8,496 20,794
After-tax profit MM Ch$ 2,567 4,321 6,394
PROFITABILITY
Return on equity % 1.1 1.9 2.8
Return on assets % 0.7 1.3 1.8
Return on operating assets % 8.4 11.9 22.9
Profit per share $ 40.1 67.5 99.9
Return on dividends % 2.6 2.6 2.4
Current liquidity Ratio of current assets to current liabilities.
Acid ratio: Ratio of uncommitted funds to current
liabilities.
Leverage ratio: Ratio of total current liabilities to net
worth.
Interest Expenses Coverage: Earnings before taxes and interest divided by
interest expenses.
Inventory turnover: Ratio between sales cost of the period and
average inventory.
Inventory permanence: Ratio between average inventory and sales cost
of the period, multiplied by 360 days
E.B.I.T.D.A: Earnings before interest, taxes, depreciation,
amortization and extraordinary items.
Return on dividends: Sum of dividends paid in the last twelve
months divided by market price of stock at
closing of period.
---
The main trends observed as of March 2004 in indicators are:
LIQUIDITY INDICES
With respect to December 2003, an increase in the index can be observed due to
a increase in current assets, due to the devaluation of the Argentine peso
with respect to the dollar, which influences positively in financial
placements in foreign currency. On the other hand a decrease in current
liabilities is due to the payment of dividends and accounts .
INDEBTEDNESS INDICES
The leverage ratio has kept almost constant for the analyzed period.
Bank indebtedness that corresponds to a US$ 50 million loan shows an increase
in Ch$ terms, due to the variation of rate of exchange, that increased from
Ch$ 593,80 as of December 2003 to Ch $ 616.41 as of March 31, 2004 .
Interest expenses coverage ratio decreased with respect to the previous year
due to a lower net income during the present fiscal year.
ACTIVITY INDICES
Inventory turnover and permanence indeces deteriorated slightly due to a
increase of finished goods inventories, as a result of lower stationary sales
of glass containers.
PROFITABILITY INDICES
Equity and asset profitability indices show a decrease with respect to March
and December 2003, due to a lower net income during the present fiscal year.
Likewise, non-operating result decreased due to a negative exchange difference
and a higher loss in related companies.
On the other hand, in spite of the higher dividends distributed during last 12
months, the return of dividends indexes shows a stability with respect to the
previous year due to an increase in the market price of the company's shares
in the stock exchange, which passed from Ch$ 4,620 as of March, 2003 to Ch $
5,000 in March, 2004.
2. DIFFERENCE BETWEEN BOOK VALUE AND MARKET VALUE OF
MAIN ASSETS.
The financial statements of the company have been prepared according to
generally accepted accounting principles and general and specific norms of the
Securities and Insurance Commission, which is the agency that regulates the
Company. The valuation of the assets includes adjustment for currency
devaluation, reserves, and technical revaluations. We believe the foregoing is
a reasonable way to value the company's permanent investments.
As of March 31, 2004, there were financial investments in stocks recorded in
the accounting according to their purchase price of Th Ch$ 4,134 million whose
market value on the same date was Th Ch$ 5,728 million.
3. RESULTS AS OF MARCH 2004
3a. Individual Result
The Company had non-consolidated sales of Ch$ 15,387 million as of March 2004,
compared to Ch$ 17,448 millon in the previous year. Volumes sold decreased by
2.4% reaching 56,856 tons, mainly due to lower sales of bottles of
non-returnable beer and liquor, partially compensated by higher sales of
bottles for wine, and analcoholic one way formats.
Operating income reached of Ch$ 4,289 million in 2004 (Ch$ 5,850 million income
in 2003), due to lower volumes sold and an average prices decrease of 9.6%,
mainly explained by a decrease in the exchange rate, which passed from US$
736.99 per dollar on average during first quarter of 2003 to US$ 587,29 per
dollar on average during the first quarter of 2004.
The non-operating result was a loss of Ch$ 1,239 million (Ch$ 499 million loss
in 2003). During 2004 a higher loss in Cristalchile Comunicaciones (owner of
50% of Metropolis-Intercom) and lower net income in Envases CMF was
registered. The former was partially compensated by higher net income from
Vina Santa Rita and Cristalchile Inversiones (owner of 40% of Rayen Cura) and
a lower loss at CIECSA.
3b. Results in Subsidiaries
During 2004, Santa Rita's net income amounted Ch$ 1,383 million, 14,7% higher
that in 2003. In the local market, prices increased by 8.2% in real terms and
volumes dropped by 3.4%. During the period, exports increased by 5.2% reaching
US$ 12.9 million (US$ 11.0 million in 2003) and represented 52.2% of total
revenues. Operating income reached Ch$ 1,059 million, compared to Ch$ 1,650
million in 2003, mainly due to higher costs of musts and higher marketing
support expenses. The average price in dollars per case for the export market
for Santa Rita was US$ 34.9 (US$ 31.4 in 2003) whereas the average price for
the industry was US$ 24.4 per case (US$ 23.5 in 2003). Santa Rita recorded a
Ch$ 582 million non-operating profit, compared to a Ch$ 24 million
non-operating income in 2003, mainly due a profit from exchange differences
and sale of assets.
Red Televisiva Megavision, CIECSA's main subsidiary, registered a Ch$ 65
million operating loss, compared with an operating loss of Ch$ 90 million in
2003. MEGA reached the first place audience share with an average viewership
share of 25.3% during the period (22.9% in 2003)1. Net sales increased by
11.7% reaching Ch$ 4,837 million, as a higher audience share has resulted in
higher sales. MEGA had a net loss of Ch$ 238 million (Ch$ 248 million loss in
2003). CIECSA had a Ch$ 300 million net loss, compared to a Ch$ 445 million
net loss the previous year.
Envases CMF S.A. registered a Ch$ 372 million net income in 2004 compared with
a Ch$ 546 million net income in 2003. Net sales reached Ch$ 7,839 million
during the period (Ch$ 8,857 million in 2003). Sales volume dropped by 3.9%,
reaching 5,844 tons, due to a decrease of pre forms exports and lower sales of
one way formats; while average prices
--------
1 Measured between 7:30AM and 1:30AM; i.e: 18 hours daily, Monday
through Sunday.
decreased by 7.9% influenced by a decrease of the exchange rate. Due to the
aforementioned, operating income reached Ch$ 740 million, compared to
Ch$ 1,174 million in 2003.
In the cable TV business, Cristalchile Comunicaciones S.A. (99.99% owned by
Cristalerias), is the owner of 50% of Cordillera Comunicaciones Ltda., which
in turn is the owner of Metropolis-Intercom S.A.
During 2004, Metropolis-Intercom S.A. registered sales of Ch$ 10,782 million,
practically equal to the previous year. Metropolis-Intercom had a net loss of
Ch$ 3,103 million compared with a net loss of Ch$ 1,973 million in 2003. The
lower result is due to a $775 million one-time expense that affected the
company's non-operating result. EBITDA reached Ch$ 1,641 million in the period
($1,614 million in 2003). This result includes a depreciation charge of Ch$
3,587 million (Ch$ 3,204 million in 2003) mainly corresponding to the HFC
network acquired in July 2000. The company ended the period with 223,957
subscribers of the basic service (240,119 in 2003), 35,514 premium subscribers
(5.2% over 2003), 36,883 subscribers of bradband internet services (42.3% over
2003) and 6,376 subscribers of IP telephony.
As a result of the abovementioned and the negative goodwill amortization
charge through Cordillera Comunicaciones of Ch$ 1,040 million in the period
(Ch$ 1,034 million in 2003), Cristalchile Comunicaciones recorded a net loss of
Ch$ 2,151 million (net loss of Ch$ 1,505 in 2003).
4. CASH FLOW STATEMENT
As of March 31, 2004 a total net positive flow of Ch$ 7,710 million was
generated, which is explained by a positive flow generated by operating
activities of Ch$ 9,969 million, which was decreased by a negative financing
flow of Ch$ 953 million and a negative flow of investment activities for
Ch$ 1,606 million.
The operating flow corresponds basically to the collection of sales and
interests income that were reduced by payment to suppliers, personnel and tax
and interests payments.
The negative financing flow can be explained by the payment of dividends.
The investment flow is mainly explained by the incorporation of fixed assets
for Ch$ 1,605 million.
The foregoing results in an increase in the final balance of cash and cash
equivalent, which passed from Ch$ 59,700 million as of December 31, 2003 to
Ch$ 67,411 million as of March 31, 2004.
According to the current regulations of the SVS and the Association of
Accountants of Chile, time deposits and agreements with due date under 90 days
have been considered cash and cash equivalent.
5. RISKS ANALYSIS
o Interest rates
The Company is exposed to the risk of fluctuations in interest rates on its
long-term debt, corresponding to a credit of US$ 50 million, which is subject
to a variable annual rate of
Libor plus 0.8% percentage points. In addition, the Company issued bonds in two
series, for a total of UF 4.1 million, for a period of 6 and 21 years, and
which pay a fixed rate of 4.75% and 5.8% respectively (the actual placement
rate was 5.3% and 6.5% respectively).
As of March 31, 2004, the Company had available funds in the amount of
Ch$ 66,050 million, invested at different terms in financial instruments such
as time deposits, bonds, fixed rate mutual funds and agreements with resale
commitment. This figure does not consider Ch$ 8,272 million in bonds with
maturity on September 15, 2005 and investments in shares for Ch$ 4,134
million.
Currently the Company does not use secondary financial instruments to reduce
risk in the event of fluctuations in interest rates. This policy will be
studied permanently to evaluate the alternatives offered by the market.
o Exchange rate
The Company maintains liabilities in dollars of US$ 66.1 million, which
represent 11.5% of its assets, and which include a balance of a long-term
syndicated loan of US$ 50 million.
As of March 31, the Company has investments in dollars of US$ 69.8 million in
time deposits, bonds and fixed rate mutual funds. In addition, it also has
investments in Euros of (euro) 24.9 million in fixed rate instruments. It also
has Dollar purchase future contracts of US$ 37.6 million that they are
compensated by sale future contracts for the same amount.
On the other hand, approximately 34% of the company's revenues are adjusted by
the exchange rate variation. Costs in foreign currency represent approximately
23.9% of total costs.
FECU (Standardized Quarterly Financial Report)
1. IDENTIFICATION
1.01.05.00 Firm Name
CRISTALERIAS DE CHILE S.A.
1.01.04.00 Company RUT 90331000-6
1.00.01.10 Starting date 1/1/2004
1.00.01.20 Closing date 3/31/2004
1.00.01.30 Type of Currency Chilean Pesos
1.00.01.40 Type of Financial Statements Consolidated
ASSETS
2.0 FINANCIAL STATEMENTS
2.01 BALANCE SHEET
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Consolidated
------------------------------------------------------------ ---------- --------------- -------------
ASSETS NOTE No. 03-31-04 03-31-03
------------------------------------------------------------ ---------- --------------- -------------
5.11.00.00 TOTAL CURRENT ASSETS 173,361,246 189,995,652
------------------------------------------------------------ ---------- --------------- -------------
5.11.10.10 Cash 2,858,397 1,690,072
------------------------------------------------------------ ---------- --------------- -------------
5.11.10.20 Time deposits 45 7,210,791 19,415,156
------------------------------------------------------------ ---------- --------------- -------------
5.11.10.30 Marketable securities (net) 4 61,782,216 68,519,258
------------------------------------------------------------ ---------- --------------- -------------
5.11.10.40 Debtors from sales (net) 5 32,129,243 33,071,445
------------------------------------------------------------ ---------- --------------- -------------
5.11.10.50 Documents receivable (net) 2,452,089 3,829,140
------------------------------------------------------------ ---------- --------------- -------------
5.11.10.60 Sundry debtors (net) 1,742,278 1,304,178
------------------------------------------------------------ ---------- --------------- -------------
5.11.10.70 Doc. & accts receivable 6 446,450 341,341
related Co.
------------------------------------------------------------ ---------- --------------- -------------
5.11.10.80 Inventories (net) 38,987,888 41,119,400
------------------------------------------------------------ ---------- --------------- -------------
5.11.10.90 Recoverable taxes 4,451,767 1,129,330
------------------------------------------------------------ ---------- --------------- -------------
5.11.20.10 Prepaid expenses 1,714,309 1,714,071
-------------- --------------------------------------------- ---------- --------------- -------------
5.11.20.20 Deferred taxes 8 1,164,859 937,873
------------------------------------------------------------ ---------- --------------- -------------
5.11.20.30 Other current assets 10 18,420,959 16,924,388
------------------------------------------------------------ ---------- --------------- -------------
5.11.20.40 Leasing contracts (net) 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.11.20.50 Leasing assets (net) 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.12.00.00 TOTAL FIXED ASSETS 134,558,564 131,656,508
------------------------------------------------------------ ---------- --------------- -------------
5.12.10.00 Land 12 13,267,675 12,995,463
------------------------------------------------------------ ---------- --------------- -------------
5.12.20.00 High rises & infrastructure 12 61,837,949 60,645,609
------------------------------------------------------------ ---------- --------------- -------------
5.12.30.00 Machinery & equipment 12 144,684,218 123,793,441
------------------------------------------------------------ ---------- --------------- -------------
5.12.40.00 Other fixed assets 12 12,168,156 17,455,503
------------------------------------------------------------ ---------- --------------- -------------
5.12.50.00 Positive goodwill from 12 6,573,793 7,675,631
technical revaluation of
fixed assets
------------------------------------------------------------ ---------- --------------- -------------
5.12.60.00 Depreciation (minus) 12 (103,973,227) (90,909,139)
------------------------------------------------------------ ---------- --------------- -------------
5.13.00.00 TOTAL OTHER ASSETS 135,051,292 146,130,600
------------------------------------------------------------ ---------- --------------- -------------
5.13.10.10 Investment in related companies 14 101,012,909 108,429,785
------------------------------------------------------------ ---------- --------------- -------------
5.13.10.20 Investment in other companies 15 804,671 821,513
------------------------------------------------------------ ---------- --------------- -------------
5.13.10.30 Negative goodwill 16 8,956,092 9,682,180
------------------------------------------------------------ ---------- --------------- -------------
5.13.10.40 Positive goodwill (minus) 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.13.10.50 Long-term debtors 206,230 184,616
------------------------------------------------------------ ---------- --------------- -------------
5.13.10.60 Doc. & accts receivable 4,257 1,504
related Co.
------------------------------------------------------------ ---------- --------------- -------------
5.13.10.65 Long-term deferred taxes 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.13.10.70 Intangibles 17 11,757,528 11,723,085
------------------------------------------------------------ ---------- --------------- -------------
5.13.10.80 Amortization (minus) 17 (1,258,183) (1,047,542)
------------------------------------------------------------ ---------- --------------- -------------
5.13.10.90 Other 18 13,567,788 16,335,459
------------------------------------------------------------ ---------- --------------- -------------
5.13.20.10 Long-term leasing contracts 0 0
(net)
------------------------------------------------------------ ---------- --------------- -------------
5.10.00.00 TOTAL ASSETS 442,971,102 467,782,760
------------------------------------------------------------ ---------- --------------- -------------
LIABILITIES
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Consolidated
------------------------------------------------------------ ---------- --------------- -------------
LIABILITIES NOTE No. 03-31-04 03-31-03
------------------------------------------------------------ ---------- --------------- -------------
5.21.00.00 TOTAL CURRENT LIABILITIES 41,189,837 48,205,054
------------------------------------------------------------ ---------- --------------- -------------
5.21.10.10 Short-term oblig. Banks & 15,223 9,827
Fin. Inst.
------------------------------------------------------------ ---------- --------------- -------------
5.21.10.20 Short-term portion - Long-term 19 4,016,775 4,376,750
oblig. Banks & Financial
Institutions
------------------------------------------------------------ ---------- --------------- -------------
5.21.10.30 Obligations with the public 0 0
(notes)
------------------------------------------------------------ ---------- --------------- -------------
5.21.20.40 Short-term portion oblig with 22 1,123,089 1,323,579
public
------------------------------------------------------------ ---------- --------------- -------------
5.21.10.50 Long-term oblig. due within 1 134,969 262,515
year
------------------------------------------------------------ ---------- --------------- -------------
5.21.10.60 Dividends payable 41,296 78,554
------------------------------------------------------------ ---------- --------------- -------------
5.21.10.70 Accounts payable 14,366,058 19,127,672
------------------------------------------------------------ ---------- --------------- -------------
5.21.10.80 Notes payable 2,085,253 4,794,597
------------------------------------------------------------ ---------- --------------- -------------
5.21.10.90 Sundry creditors 950,881 2,950,107
------------------------------------------------------------ ---------- --------------- -------------
5.21.20.10 Notes & accts payable related Co. 265,586 210,952
------------------------------------------------------------ ---------- --------------- -------------
5.21.20.20 Provisions 23 11,649,530 9,657,719
------------------------------------------------------------ ---------- --------------- -------------
5.21.20.30 Withholdings 1,674,611 1,766,542
------------------------------------------------------------ ---------- --------------- -------------
5.21.20.40 Income tax 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.21.20.50 Earned income 2,738,293 2,534,105
------------------------------------------------------------ ---------- --------------- -------------
5.21.20.60 Deferred taxes 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.21.20.70 Other current liabilities 20 2,128,273 1,112,135
------------------------------------------------------------ ---------- --------------- -------------
5.22.00.00 TOTAL LONG-TERM LIABILITIES 133,220,361 145,022,572
------------------------------------------------------------ ---------- --------------- -------------
5.22.10.00 Oblig with Banks & Financial 21 33,924,299 44,457,024
Inst.
------------------------------------------------------------ ---------- --------------- -------------
5.22.20.00 Long-term oblig with public 22 89,150,346 88,953,080
(bonds)
------------------------------------------------------------ ---------- --------------- -------------
5.22.30.00 Long-term notes payable 0 127,494
------------------------------------------------------------ ---------- --------------- -------------
5.22.40.00 Long-term sundry debtors 208,028 1,087,933
------------------------------------------------------------ ---------- --------------- -------------
5.22.50.00 Long-term notes & accts. 0 0
payable related companies
------------------------------------------------------------ ---------- --------------- -------------
5.22.60.00 Long-term provisions 23 6,001,842 6,063,280
------------------------------------------------------------ ---------- --------------- -------------
5.22.70.00 Long-term deferred taxes 8 3,935,846 4,333,761
------------------------------------------------------------ ---------- --------------- -------------
5.22.80.00 Other long-term liabilities 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.23.00.00 MINORITY INTEREST 26 38,119,578 37,468,548
------------------------------------------------------------ ---------- --------------- -------------
5.24.00.00 TOTAL EQUITY 230,441,326 237,086,586
------------------------------------------------------------ ---------- --------------- -------------
5.24.10.00 Paid-in capital 27 65,396,749 64,749,257
------------------------------------------------------------ ---------- --------------- -------------
5.24.20.00 Reserve capital revaluation 27 (326,984) 323,746
------------------------------------------------------------ ---------- --------------- -------------
5.24.30.00 Premium in sale of own shares 27 27,735,005 27,736,385
------------------------------------------------------------ ---------- --------------- -------------
5.24.40.00 Other reserves 27 7,084,586 10,040,408
------------------------------------------------------------ ---------- --------------- -------------
5.24.50.00 Retained earnings (addition 130,551,970 134,236,790
of codes 5.24.51.00 to 5.24.56.00)
------------------------------------------------------------ ---------- --------------- -------------
5.24.51.00 Reserve 122,544,319 115,487,218
future dividends
----------------------------------------------------------- ---------- --------------- -------------
5.24.52.00 Accrued profits 5,441,098 14,428,510
------------------------------------------------------------ ---------- --------------- -------------
5.24.53.00 Accrued losses 0 0
(minus)
------------------------------------------------------------ ---------- --------------- -------------
5.24.54.00 Profit (loss) for 27 2,566,553 4,321,062
the year
------------------------------------------------------------ ---------- --------------- -------------
5.24.55.00 Prov. dividends 27 0 0
(minus)
------------------------------------------------------------ ---------- --------------- -------------
5.24.56.00 Accr. deficit dev. 0 0
period
------------------------------------------------------------ ---------- --------------- -------------
5.20.00.00 TOTAL LIABILITIES 442,971,102 467,782,760
------------------------------------------------------------ ---------- --------------- -------------
INCOME STATEMENT
2.02 INCOME STATEMENT
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance: Consolidated
------------------------------------------------------------ ---------- --------------- -------------
INCOME STATEMENT NOTE No. 03-31-04 03-31-03
------------------------------------------------------------ ---------- --------------- -------------
5.31.11.00 OPERATING INCOME 5,325,255 7,435,106
------------------------------------------------------------ ---------- --------------- -------------
5.31.11.10 Gross Margin 11,221,090 12,818,820
------------------------------------------------------------ ---------- --------------- -------------
5.31.11.11 Sales 33,605,832 35,372,089
------------------------------------------------------------ ---------- --------------- -------------
5.31.11.12 Costs (minus) (22,384,742) (22,553,269)
------------------------------------------------------------ ---------- --------------- -------------
5.31.11.20 Adm. & sales expenses (5,895,835) (5,383,714)
(minus)
------------------------------------------------------------ ---------- --------------- -------------
5.31.12.00 NON-OPERATING RESULTS (1,317,130) (1,051,789)
------------------------------------------------------------ ---------- --------------- -------------
5.31.12.10 Interest income 567,421 504,339
------------------------------------------------------------ ---------- --------------- -------------
5.31.12.20 Income investments Rel. Co. 14 523,548 549,170
------------------------------------------------------------ ---------- --------------- -------------
5.31.12.30 Other non-operating income 28 419,032 137,520
------------------------------------------------------------ ---------- --------------- -------------
5.31.12.40 Loss investments Rel. (2,234,036) (1,649,803)
Co. (-)
------------------------------------------------------------ ---------- --------------- -------------
5.31.12.50 Amortization (159,224) (162,076)
neg.goodwill (-)
------------------------------------------------------------ ---------- --------------- -------------
5.31.12.60 Interest expenses (minus) (1,641,425) (1,713,063)
------------------------------------------------------------ ---------- --------------- -------------
5.31.12.70 Other non-operat 28 (501,109) (536,153)
expenses (-)
------------------------------------------------------------ ---------- --------------- -------------
5.31.12.80 Price level restatement 29 344,520 156,293
------------------------------------------------------------ ---------- --------------- -------------
5.31.12.90 Exchange differences 30 1,364,143 1,661,984
------------------------------------------------------------ ---------- --------------- -------------
5.31.10.00 RESULTS BEFORE INCOME TAX 4,008,125 6,383,317
AND EXTRAORDINARY ITEMS
------------------------------------------------------------ ---------- --------------- -------------
5.31.20.00 INCOME TAX 8 (815,387) (1,521,340)
------------------------------------------------------------ ---------- --------------- -------------
5.31.30.00 EXTRAORDINARY ITEMS 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.31.40.00 PROFIT (LOSS) BEFORE 3,192,738 4,861,977
MINORITY INTEREST
------------------------------------------------------------ ---------- --------------- -------------
5.31.50.00 MINORITY INTEREST 26 (626,185) (540,915)
------------------------------------------------------------ ---------- --------------- -------------
5.31.00.00 NET INCOME (LOSS) 2,566,553 4,321,062
------------------------------------------------------------ ---------- --------------- -------------
5.32.00.00 Amortization of positive goodwill 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.30.00.00 INCOME (LOSS) FOR THE YEAR 2,566,553 4,321,062
------------------------------------------------------------ ---------- --------------- -------------
DIRECT CASH FLOW STATEMENT
2.03 CASH FLOW STATEMENT
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Consolidated
------------------------------------------------------------ ---------- --------------- -------------
DIRECT CASH FLOW STATEMENT NOTE No. 03-31-04 03-31-03
------------------------------------------------------------ ---------- --------------- -------------
5.41.11.00 NET FLOW FROM OP. ACT. 14,861,608 14,616,332
------------------------------------------------------------ ---------- --------------- -------------
5.41.11.10 Collection from sales debtors 49,140,874 50,076,077
------------------------------------------------------------ ---------- --------------- -------------
5.31.11.20 Interests received 2,138,550 1,568,504
------------------------------------------------------------ ---------- --------------- -------------
5.31.11.30 Dividends & other distributions 1,031,758 54,776
funds received
------------------------------------------------------------ ---------- --------------- -------------
5.31.11.40 Other income 33 424,490 388,997
------------------------------------------------------------ ---------- --------------- -------------
5.31.11.50 Payments to suppliers & (30,828,771) (31,004,020)
personnel (-)
------------------------------------------------------------ ---------- --------------- -------------
5.31.11.60 Interest paid (minus) (2,101,184) (1,929,562)
------------------------------------------------------------ ---------- --------------- -------------
5.31.11.70 Income tax paid (minus) (969,987) (1,006,355)
------------------------------------------------------------ ---------- --------------- -------------
5.31.11.80 Other expenses (minus) 33 (236,122) (467,154)
------------------------------------------------------------ ---------- --------------- -------------
5.31.11.90 V.A.T. & other taxes (minus) (3,738,000) (3,064,931)
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.00 CASH FLOW FINANCING ACTIVITIES (1,579,657) (2,155,759)
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.05 Proceeds from share issue 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.10 Loans received 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.15 Obligations with the public 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.20 Secured loans from related 15,537 35,697
companies
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.25 Other loans from related 0 56
companies
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.30 Other financing resources 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.35 Dividends paid (minus) (947,653) (1,346,555)
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.40 Capital distributions (minus) 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.45 Repayment of loans (minus) (632,004) (815,837)
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.50 Payment of obligations with the 0 0
public (-)
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.55 Repayment of secured loans from (15,537) (29,120)
rel Co. (-)
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.60 Repayment other loans from 0 0
related Co. (-)
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.65 Share issue payment (minus) 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.70 Payment of issue publ oblig 0 0
(minus)
------------------------------------------------------------ ---------- --------------- -------------
5.41.12.75 Other financing payments (minus) 33 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.41.13.00 CASH FLOW FROM INVESTING ACTIVITIES (3,783,342) (4,190,738)
------------------------------------------------------------ ---------- --------------- -------------
5.41.13.05 Sale of fixed assets 8,111 176,101
------------------------------------------------------------ ---------- --------------- -------------
5.41.13.10 Sale of permanent investments 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.41.13.15 Sale of other investments 33 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.41.13.20 Proceeds secured loans to 0 0
related Comp.
------------------------------------------------------------ ---------- --------------- -------------
5.41.13.25 Proceeds other loans to related 28,448 969,251
companies
------------------------------------------------------------ ---------- --------------- -------------
5.41.13.30 Other investment income 33 0 1,762,160
------------------------------------------------------------ ---------- --------------- -------------
5.41.13.35 Incorporation of fixed assets (3,587,573) (7,064,599)
(minus)
------------------------------------------------------------ ---------- --------------- -------------
5.41.13.40 Capitalized interests payment 0 0
(minus)
------------------------------------------------------------ ---------- --------------- -------------
5.41.13.45 Permanent Investments (minus) (240) 0
------------------------------------------------------------ ---------- --------------- -------------
5.41.13.50 Investments in financial 0 (15,291)
instruments (minus)
------------------------------------------------------------ ---------- --------------- -------------
5.41.13.55 Other loans to related companies 0 0
(minus)
------------------------------------------------------------ ---------- --------------- -------------
5.41.13.60 Other loans to related companies (1,737) (6,680)
(minus)
------------------------------------------------------------ ---------- --------------- -------------
5.41.13.65 Other distrib of funds on invest 33 (230,351) (11,680)
activities (-)
------------------------------------------------------------ ---------- --------------- -------------
5.41.00.00 TOTAL NET CASH FLOW FOR THE PERIOD 9,498,609 8,269,835
------------------------------------------------------------ ---------- --------------- -------------
5.42.20.00 EFFECT OF INFLATION ON CASH & CASH EQUIV. 771,498 (385,703)
------------------------------------------------------------ ---------- --------------- -------------
5.41.00.00 NET CHANGE IN & CASH EQUIVALENT 10,270,107 7,884,132
------------------------------------------------------------ ---------- --------------- -------------
5.42.00.00 CASH & CASH EQUI AT BEGINNING OF PERIOD 75.292.336 93.762.741
------------------------------------------------------------ ---------- --------------- -------------
5.43.00.00 CASH & CASH EQUIV BALANCE AT END OF PERIOD 85,562,443 101,646,873
------------------------------------------------------------ ---------- --------------- -------------
INCOME STATEMENT RECONCILIATION
CONCILIATION BETWEEN CASH FLOW GENERATED BY THE OPERATION'S ACTIVITIES AND THE
INCOME STATEMENT FOR THE YEAR
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance: Consolidated
------------------------------------------------------------ ---------- --------------- -------------
CASH FLOW - INCOME STATEMENT RECONCILIATION NOTE No. 03-31-04 03-31-03
------------------------------------------------------------ ---------- --------------- -------------
5.50.10.00 Profit (Loss) for the year 2,566,553 4,321,062
------------------------------------------------------------ ---------- --------------- -------------
5.50.20.00 Profit (Loss) in sale of assets 49,459 5,601
------------------------------------------------------------ ---------- --------------- -------------
5.50.20.10 (Profit) Loss in sale of fixed assets 49,459 5,601
------------------------------------------------------------ ---------- --------------- -------------
5.50.20.20 Profit in sale of investments (minus) 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.50.20.30 Loss in sale of investments 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.50.20.40 (Profit) Loss in sale of other assets 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.50.30.00 Non-cash losses (gains) 6,343,048 6,013,803
------------------------------------------------------------ ---------- --------------- -------------
5.50.30.05 Depreciation for the year 12 3,804,993 3,450,664
------------------------------------------------------------ ---------- --------------- -------------
5.50.30.10 Amortization of intangibles 256,812 296,830
------------------------------------------------------------ ---------- --------------- -------------
5.50.30.15 Write-offs and provisions 2,200,345 1,857,759
------------------------------------------------------------ ---------- --------------- -------------
5.50.30.20 Accrued earnings from investments (523,548) (549,170)
in related companies (minus)
------------------------------------------------------------ ---------- --------------- -------------
5.50.30.25 Accrued losses from investments 2,234,036 1,649,803
in related Co.
------------------------------------------------------------ ---------- --------------- -------------
5.50.30.30 Negative goodwill amortization 159,224 162,076
------------------------------------------------------------ ---------- --------------- -------------
5.50.30.35 Positive goodwill amortization (minus) 0 0
------------------------------------------------------------ ---------- --------------- -------------
5.50.30.40 Price level restatement 29 (344,519) (156,293)
------------------------------------------------------------ ---------- --------------- -------------
5.50.30.45 Net exchange difference 30 (1,364,142) (1,661,984)
------------------------------------------------------------ ---------- --------------- -------------
5.50.30.50 Other non-cash credits to results (230,595) (8,431)
(minus)
------------------------------------------------------------ ---------- --------------- -------------
5.50.30.55 Other non-cash debits to results 150,442 972,549
------------------------------------------------------------ ---------- --------------- -------------
5.50.40.00 Changes in Assets affecting cash flow (incr) (4,935,059) (9,206,916)
decreases
------------------------------------------------------------ ---------- --------------- -------------
5.50.40.10 Debtors from sales 2,491,768 1,789,271
------------------------------------------------------------ ---------- --------------- -------------
5.50.40.20 Inventory (7,249,279) (9,041,682)
------------------------------------------------------------ ---------- --------------- -------------
5.50.40.30 Other assets (177,548) (1,954,505)
------------------------------------------------------------ ---------- --------------- -------------
5.50.50.00 Changes in liabilities affecting cash flow 10,211,422 12,941,854
increases (decr)
------------------------------------------------------------ ---------- --------------- -------------
5.50.50.10 Accounts payable related to results 11,239,505 13,270,339
for the year
------------------------------------------------------------ ---------- --------------- -------------
5.50.50.20 Interests payable (570,488) (336,135)
------------------------------------------------------------ ---------- --------------- -------------
5.50.50.30 Income tax payable (net) 99,559 572,809
------------------------------------------------------------ ---------- --------------- -------------
5.50.50.40 Other accounts payable related to 535,688 16,844
non-oper results
------------------------------------------------------------ ---------- --------------- -------------
5.50.50.50 VAT and other taxes payable (net) (1,092,842) (582,003)
------------------------------------------------------------ ---------- --------------- -------------
5.50.60.00 Profit (Loss) of minority interest 26 626,185 540,928
------------------------------------------------------------ ---------- --------------- -------------
5.50.00.00 NET OPERATING CASH FLOW 14,861,608 14,616,332
------------------------------------------------------------ ---------- --------------- -------------
01. Registration in the Securities Register
IDENTIFICATION OF THE COMPANY AND REGISTRATION IN THE SECURITIES REGISTER
The company is registered in the Securities Register under No. 061 and it is
supervised by the Securities and Insurance Commission.
The subsidiary S.A. Vina Santa Rita is registered in the Securities Register
under number 390 of the S.V.S. (Securities and Insurance Commission).
02. Applied Accounting Criteria
APPLIED ACCOUNTING CRITERIA
a) Accounting Period
These financial statements correspond to the period between January 1 and
March 31 of 2004 and 2003.
b) Preparation basis of financial statements:
These consolidated financial statements as of March 31, 2004 and 2003 have
been prepared on the basis of generally accepted accounting principles and
specific norms issued by the S.V.S.; the former prevailing in case of
discrepancies.
c) Presentation Basis
For comparison purposes, the financial statements and figures included in the
disclosures for the 2003 fiscal year are presented at its nominal value since
the CPI variation for the period is equal to zero (0%).
d) Consolidation Basis
The consolidated financial statements include the balances of the following
subsidiaries: Cristalchile Comunicaciones S.A., Cristalchile Inversiones S.A.,
Ciecsa S.A. consolidated, S.A. Vina Santa Rita consolidated, and Constructora
Apoger S.A. consolidated.
The company Ciecsa consolidated includes the balances of its subsidiary Red
Televisiva Megavision S.A. in which it has a 99.99% stake of its net worth and
Simetral S.A. which it has a 81.5% stake of its net worth.
S.A. Vina Santa Rita consolidated includes the balances of its subsidiaries
Vina Carmen S.A., with a 99.9% stake in its net worth, and Vina Centenaria
S.A., with 99.9% stake, Vina Dona Paula S.A. with a 100% stake and Sur Andino
S.A., with 100% stake in 2004 and 2003.
Constructora Apoger S.A. includes the balances of its subsidiary Inmobiliaria
Monte Azul S.A., in which it has a 99% stake.
Intercompany balances, transactions, debits, and refunds were eliminated in
the consolidation and has being acknowledged the shareholding of the
investments minorities shown in the balance as a minority interest.
The subsidiary companies included in the consolidation are presented on an
attached chart.
e) Adjustment for Currency Devaluation (Price Level Restatement)
Consolidated financial statements have been restated considering the variation
in the purchasing power of the currency which occurred in the first quarter of
2004, which was -0.5% (0.5% in 2003).
f) Conversion Basis
Balances in foreign currency and indexed currency units have been converted to
pesos at the indicated parities:
2004 2003
Ch$ Ch$
U.S. Dollar 616.41 731.56
Pound Sterling 1,136.24 1,156.25
Swiss Franc 486.59 540.65
EURO 758.38 797.34
Unidad de Fomento 16,820.82 16,783.60
g) Marketable Securities and Time Deposits
Transactions in short-term fixed income instruments (PRC) are shown at the
return value of the investment, which does not exceed the market value as of
March 31, 2004 and 2003.
Investments in stock are shown at the lowest value between the corrected cost
and market value.
Time deposits are shown at the value of the investment, plus adjustments and
interest accrued as of the date of the fiscal year.
Investments carried out by the parent company in Celulosa Arauco bonds are
registered at the par value, without adjusting to the market value because
there is the intention of keeping them until their long term due date.
h) Inventory
Inventory of finished products has been valued as of March 31, 2004 and 2003
at the direct production cost, duly updated, and raw materials and materials
at the cost of the last purchase or its corrected cost. Those valuations do
not exceed the net liquidation value.
Inventory of foreign television programs to be exhibited are valued at the
purchase cost at the exchange rate in effect at the closing of the fiscal
year. Local programs are valued according to the terms of the respective
contracts.
Inventory at the closing of each fiscal year represents the value of the films
and videos contracted and the proportion of repeats that are pending
exhibition. The actual cost of the programs is charged to results as they are
shown.
i) Bad Debts (Non-collectable)
The parent company and subsidiaries have made provision for bad debts that is
deducted from debtors for sales and documents receivable. The criterion
adopted to estimate them is the age of the balances.
j) Fixed Assets
The property in fixed assets is shown at the purchase cost plus legal and
regulatory revaluations accumulated until March 31, 2004 and 2003.
k) Depreciation of Fixed Assets
Depreciation of these goods is calculated on updated values, according to the
straight-line depreciation system, considering the estimated useful life of
the goods.
l) Assets in Leasing
None.
m) Sales Transactions with Leaseback
None.
n) Intangibles
The corrected purchase value of trademarks of the subsidiary Vina Santa Rita,
that includes inscription costs is presented as intangibles. The subsidiary
CIECSA consolidated includes TV channel 9 frequency, for which the
amortization period is 40 years, and the amortization method is that of
"Increasing Digits".
o) Investments in Related Companies
Investments in stocks and rights in related companies have been valued
according to the percentage of the holding that corresponds to the Company in
the equity of its affiliates and subsidiaries (V.P.P.), according to
procedures established for these purposes by circular 368 of the Securities
and Insurance Commission. Investments abroad have been valued according to the
provisions of Technical Bulletin No. 64 of the Accountants Association.
p) Goodwill Amortization
Goodwill amortization resulted from comparing the price paid for the
investment with the proportional equity value (VPP) that corresponds to the
investment in the company's equity.
Amortizations of these values are carried out in a period of twenty years.
As of March 31, 2004 and 2003 there is no positive goodwill.
q) Operations with repurchase and resale agreement
Financial instruments acquired with a resale agreement are shown at their
purchase value plus interest and adjustments accrued at the closing of the
fiscal year, and they are classified in Other Current Assets, in the terms
established in Circular No. 768 of the Securities and Insurance Commission.
r) Obligations with public
Obligations for bonds issued are shown at their face value plus adjustments
and interest accrued at the closing of each fiscal year. The negative goodwill
obtained compared to par value is amortized proportionally to payment or
redemption of the capital installments of those bonds and the expenses for the
placement of long-term bonds.
s) Deferred Taxes and Income Tax
The parent company and its subsidiaries has complied with deferred taxes, in
accounting terms, as established in Technical Bulletin No. 60 and 71 of The
Accountants Association and the norms indicated in circular 1466 of the S.V.S.
Income tax is recorded in the accounting on the basis of the calculation of
net taxable income determined according to norms established in the Income Tax
Law.
t) Severance payment
The parent company has established a reserve for all of the personnel's
severance payment, according to the union contracts signed with their workers.
This reserve is shown at the present value of the obligation.
u) Sales
The consolidated companies recognize operating income on an accrued basis
according to generally accepted accounting principles in Chile.
v) Derivative Contracts
The parent company and its subsidiaries Ciecsa S.A. and S.A. Vina Santa Rita
maintain Future contracts in foreign currency recorded as established in
Technical Bulletin 57 of the Accountants Association of Chile.
w) Computer Software
The parent company and S.A. Vina Santa Rita develop computer software with
their own resources and they also acquire computer packages from third
parties. Disbursements due to their own development are charged to results as
they are generated. Computer packages are recorded in Fixed Assets and
amortized in 36 months by the parent company and in 48 months by the
subsidiary S.A. Vina Santa Rita.
x) Research and development expenses
The companies register any expenses for this item directly to results as they
generate.
y) Cash flow statement:
According to current regulations of the Securities and Insurance Commission
and the Accountants Association of Chile, in preparing the cash flow
statement, the Company has considered time deposits and deposits with
maturities under 90 days as cash.
Such cash flows related to the Company's line of business, interest paid,
interest income received, dividends received, and all such that is not defined
as investment or Financing is included under the heading "Flow Originating in
Activities of the Operation."
Disbursements originating in time deposits and deposits with maturities over
90 days have been classified in the item "Investments in Financial
Instruments."
---------------------------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
---------------------------------------------------------------------------------------------------
NOTE 2 - ACCOUNTING CRITERIA USED - COMPANIES INCLUDED IN THE CONSOLIDATED REPORT
---------------------------------------------------------------------------------------------------
Percentage of Shareholding
----------------------------------------------------- ---------------------------------------------
R.U.T. Company Name 03.31.2004 03.31.2003
---------------- ------------------------------------ -------- ------------ ---------- ------------
Direct Indirect Total Total
---------------- ------------------------------------ -------- ------------ ---------- ------------
96.721.580-5 Cristalchile Comunicaciones S.A. 99.9980 0.0000 99.9980 99.9980
---------------- ------------------------------------ -------- ------------ ---------- ------------
96.767.580-6 Constructora Apoger S.A. 80.0000 0.0000 80.0000 80.0000
---------------- ------------------------------------ -------- ------------ ---------- ------------
96.608.270-4 Ciecsa S.A. 98.4458 0.0000 98.4458 98.2737
---------------- ------------------------------------ -------- ------------ ---------- ------------
86.547.900-K S.A. Vina Santa Rita 54.0970 0.0000 54.0970 54.0970
---------------- ------------------------------------ -------- ------------ ---------- ------------
96.972.440-5 Cristalchile Inversiones S.A. 99.9900 0.0100 100.0000 100.0000
---------------- ------------------------------------ -------- ------------ ---------- ------------
03. Accounting Changes
As of March 31, 2004 and 2003, there have not been any changes in the
accounting criteria applied that affect the consolidated financial statements.
04. Marketable Securities
As of March 31, 2004, this item includes the following investments:
a) Investments in bonds and Fixed Fate Instruments are included in the
amount of Th Ch$ 49,706,788 which are equivalent to US$ 49,982,182 and
24,917,945 euros; which mainly correspond to state bonds and bonds of
financial institutions in USA, Germany and Holland, Collateralized Bonds
of Private Companies in USA (with accounts receivable guarantee) and USA
Mortgage Bonds with state guarantee.
b) Th Ch$ 7,941,651 shares in investment funds in U.S dollars.
c) Th Ch$ 4,133,177 in shares.
At March 31, 2004, this item is composed by the following investments:
a) Investments in bonds, Fixed Fate Instruments are included in the amount
of Th Ch$ 55,388,004; which mainly corresponds of Treasury Bills bonds,
financial institutions in USA, Germany and Holland, Collateralized Bonds
of Private Companies in USA (with receivable accounts guarantee) and USA
Mortgage Bonds with state guarantee.
b) Th Ch$ 9,301,239 shares in investment funds in U.S dollars.
c) Th Ch$ 3,830,015 in shares.
----------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
----------------------------------------------------------------
NOTE 4 -MARKETABLE SECURITIES- BALANCE COMPOSITION
----------------------------------------------------------------
Type of Security Book Value
--------------------------------- ----------------- ------------
03-31-2004 03-31-2003
--------------------------------- ----------------- ------------
Shares 4,133,777 3,830,015
--------------------------------- ----------------- ------------
Bonds 49,706,788 55,388,004
--------------------------------- ----------------- ------------
Shares in mutual funds 0 0
--------------------------------- ----------------- ------------
Shares in investment funds 7,941,651 9,301,239
--------------------------------- ----------------- ------------
Public tender notes 0 0
--------------------------------- ----------------- ------------
Mortgage bonds 0 0
--------------------------------- ----------------- ------------
Total Marketable Securities 61,782,216 68,519,258
--------------------------------- ----------------- ------------
---------------------------------------------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - SHARES
------------------- -------------------------------------- ----------- -------------- -------- ---------- -----------
Unit Market
R.U.T. Company Name Number of Participation Market Investment Corrected
Shares Percentage Value Value Cost
------------------- -------------------------------------- ----------- -------------- -------- ---------- -----------
96.512.200-1 Bodegas y Vinedos Santa Emiliana S.A. 63,642,856 9.9980 90 5,727,857 4,133,777
------------------- -------------------------------------- ----------- -------------- -------- ---------- -----------
---------------------------------------------------------- ---------- -----------
Value Investment Portfolio 5,727,857 4,133,777
---------------------------------------------------------- ---------- -----------
Adjustment Provision 0
---------------------------------------------------------- -----------
Book value, Investment Portfolio 4,133,777
---------------------------------------------------------- -----------
----------------------------------------------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - FIXED RATE
INSTRUMENTS
--------------------------------------------------------------------- ------------------------- ------------ ---------
Type of Security Par Book Value Market Reserve
Value Value
-------------------------
Amount Rate % (3)
--------------------------------------------------------- ----------- ----------- -------------- ----------- ---------
Financial Institutions bonds (USA, Germany and Holland) 21,676,997 21,676,997 0.56 21,676,997 0
--------------------------------------------------------- ----------- ----------- ------------- ------------ ---------
US treasury bonds 16,721,713 16,721,713 1.44 16,721,713 0
--------------------------------------------------------- ----------- ----------- ------------- ------------ ---------
Mortgage bonds USA (with state guarantee) 6,115,179 6,115,179 1.44 6,115,179 0
--------------------------------------------------------- ----------- ----------- ------------- ------------ ---------
Call Deposit 5,218,451 5,218,451 0.56 5,218,451 0
--------------------------------------------------------- ----------- ----------- ------------- ------------ ---------
BBH U.S. Money Market Portfolio 7,916,099 7,916,099 0.00 7,916,099 0
--------------------------------------------------------- ----------- ----------- ------------- ------------ ---------
TOTAL - -
--------------------------------------------------------- ----------- ----------- ------------- ------------ ---------
57,648,439 57,648,439 57,648,439
--------------------------------------------------------- ----------- ----------- ------------- ------------ ---------
Note:
(1) The investments has been made in U.S. Dollar (67.2%) and EUROS (32.8%)
these are in custody abroad.
(2) These investments can be recovered with 48 hrs. previous notice.
(3) Period from 01-01-2004 to 03-31-2004.
05. Short-Term and Long-Term Debtors
Balances for ST and LT debtors are presented in the annexed chart.
As of March 31, 2004 and 2003, there are balances for short-term debtors in
the amount of Th $36,323,610 (Th $ 38,204,763 in 2003).
The bad debt reserve of Th $ 439,117 in 2004 (Th $ 649,839 in 2003) is shown
deducting the balances of Debtors from Sales and Documents receivable.
The balances of Short-term Debtors are shown net of Customer Advance Payments.
Also, there is a balance of Th $ 206,230 in Long Term Debtors in 2004 (Th $
184,616 in 2003).
-----------------------------------------------------------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
-----------------------------------------------------------------------------------------------------------------------------------
NOTE 5 -SHORT AND LONG TERM DEBTORS
-----------------------------------------------------------------------------------------------------------------------------------
Item Current Assets Long Term
Over 90 days
------------------------------------------------------------------------------------- ----------------------
Up to 90 days up to 1 year Subtotal Total Current (net)
----------------------- ----------------------- ----------- ------------------------- ----------------------
03-31-2004 03-31-2003 03-31-2004 03-31-2003 03-31-2004 03-31-2003 03-31-2004 03-31-2003
----------------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------- ---------- -----------
Debts from Sales 30,264,538 31,875,185 2,303,822 1,644,088 32,568,360 32,129,243 33,071,445 0 0
----------------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------- ---------- -----------
Estimate of bad debtors - - - - 439,117 - - - -
----------------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------- ---------- -----------
Documents receivable 2,572,500 3,958,138 123,504 73,013 2,696,004 2,452,089 3,829,140 0 0
----------------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------- ---------- -----------
Estimate of bad debtors - - - - 243,915 - - - -
----------------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------- ---------- -----------
Misc. Debtors 1,709,985 1,255,253 32,293 48,925 1,742,278 1,742,278 1,304,178 206,230 184,616
----------------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------- ---------- -----------
Estimate of bad debtors - - - - - - - - -
----------------------- ----------- ----------- ----------- ----------- ----------- ----------- ------------- ---------- -----------
Total Long Term Debtors 206,230 184,616
----------------------- ----------- ----------- ----------- ----------- ----------- ------------------------- ---------- -----------
06. Balances and Transactions with related entities
Balances receivable in the Short-Term as of March 31, 2004 that total Th Ch$
446,450 (Th Ch$ 341,341 in 2003) correspond mainly to a loan granted by the
subsidiary Ciecsa to Editorial Zig Zag for Th Ch$ 105,098 (Th Ch$ 161,146 in
2003) including interests, with maturity on 06-30-2004 at an annual interest
rate of 1% and advertising sold by Red Televisiva Megavision S.A. to
Metropolis Intercom for Th Ch$ 76,874 (Th Ch$ 88,565 in 2003). The balance
corresponds to invoicing receivable for Th Ch$ 369,576 (Th Ch$ 91,630 in
2003).
Balances payable in the short term totaling Th Ch$ 265,586 at March 31, 2004
(Th Ch$ 210,952 in 2003) and mainly corresponds to commercial transactions
under 90 days.
In 2004 there is a long-term receivable corresponding to invoices totaling Ch
Th$ 4,257 (Ch Th$ 1,504 in 2003).
----------------------------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
----------------------------------------------------------------------------------------------------
NOTE 6 - BALANCE AND TRANSACTIONS WITH RELATED COMPANIES
----------------------------------------------------------------------------------------------------
DOCUMENTS AND ACCOUNTS RECEIVABLE
--------------- ------------------------------------ ----------------------- -----------------------
R.U.T. Company Short Term Long Term
--------------- ------------------------------------ ----------------------- -----------------------
03-31-2004 03-31-2003 03-31-2004 03-31-2003
--------------- ------------------------------------ ----------- ----------- ----------- -----------
89.150.900-6 Vina Los Vascos S.A. 169,953 78,594 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
0-E Rayen Cura SAIC 69,860 0 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
83.032.100-4 Serv. Y Consultorias Hendaya S.A. 249 253 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
90.684.000-6 Editorial Zig-Zag S.A. 105,098 161,146 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
86.881.400-4 Envases CMF S.A. 16,047 5,085 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
90.320.000-6 Cia. Electro Metalurgica S.A. 130 108 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
96.539.380-3 Ediciones Financieras S.A. 6,654 2,751 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
79.753.810-8 Claro y Cia. 129 125 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
96.787.775-1 Metropolis Intercom S.A. 76,874 78,646 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
90.160.000-7 Sudamericana de Vapores S.A. 1,456 591 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
96793770-3 Ediciones Chiloe S.A. 0 0 4,257 1,504
--------------- ------------------------------------ ----------- ----------- ----------- -----------
86963200-7 Forus S.A. 0 14,042 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
Total 446,450 341,341 4,257 1,504
--------------- ------------------------------------ ----------- ----------- ----------- -----------
----------------------------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
----------------------------------------------------------------------------------------------------
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
----------------------------------------------------------------------------------------------------
DOCUMENTS AND ACCOUNTS PAYABLE
--------------- ------------------------------------ ----------------------- -----------------------
R.U.T. Company Short Term Long Term
--------------- ------------------------------------ ----------------------- -----------------------
03-31-04 03-31-2003 03-31-04 03-31-2003
--------------- ------------------------------------ ----------- ----------- ----------- -----------
90.320.000-6 Cia. Electro Metalurgica S.A. 3,185 11,599 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
83.032.100-4 Serv. Y Consultorias Hendaya S.A. 26,386 0 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
89.150.900-6 Vina Los Vascos S.A. 13,204 1,109 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
79.753.810-8 Claro y Cia. 6,349 27,639 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
96.539.380-3 Ediciones Financieras S.A. 5,399 11,281 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
86.881.400-4 Envases CMF S.A. 175,752 134,718 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
90.160.000-7 Cia. Sudamericana de Vapores S.A. 21,926 12,500 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
77.658.870-9 Marketing Meter Ltda. 9,358 391 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
0-E Rayen Cura S.A.I.C. 1,165 11,715 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
92.048.000-4 Sudamericana Agencias Maritimas S.A. 2,862 0 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
Total 265,586 210,952 0 0
--------------- ------------------------------------ ----------- ----------- ----------- -----------
CRISTALERIAS DE CHILE S.A. NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
-------------------------------------------------------------------------------------------
TRANSACTIONS
--------------------------- -------------- -------------------- ---------------------------
Company R.U.T. Relationship Description of Transaction
--------------------------- -------------- -------------------- ---------------------------
Serv. Y Consultorias 83.032.100-4 Majority shareholder Services received
Hendaya S.A.
--------------------------- -------------- -------------------- ---------------------------
- Dividends paid
--------------------------- -------------- -------------------- ---------------------------
- Services supplied
--------------------------- -------------- -------------------- ---------------------------
- Products sold
--------------------------- -------------- -------------------- ---------------------------
Claro y Cia. 79.753.810-8 With the Chairman Advice received
--------------------------- -------------- -------------------- ---------------------------
- Products sold
--------------------------- -------------- -------------------- ---------------------------
Quemchi S.A. 96.640.360-8 Same Parent Services rendered
--------------------------- -------------- -------------------- ---------------------------
Rayen Cura S.A.I.C. 0-E Indirect affiliate Direct sales
--------------------------- -------------- -------------------- ---------------------------
Navarino S.A. 96.566.900-0 Same Parent Services supplied
--------------------------- -------------- -------------------- ---------------------------
Ediciones Financieras S.A. 96.793.77-3 Indirect affiliate Products sold
--------------------------- -------------- -------------------- ---------------------------
- Services purchased
--------------------------- -------------- -------------------- ---------------------------
- Services received
--------------------------- -------------- -------------------- ---------------------------
Soc Agric. Cullipeumo Ltda. 77489-K Indirect Raw Material Purchased
--------------------------- -------------- -------------------- ---------------------------
Metropolis Intercom S.A. 96.787.750-6 Indirect affiliate Product sold
--------------------------- -------------- -------------------- ---------------------------
Advertising hired
--------------------------- -------------- -------------------- ---------------------------
Envases CMF S.A. 86.881.400-4 Indirect affiliate Materials purchased
--------------------------- -------------- -------------------- ---------------------------
- Products sold
--------------------------- -------------- -------------------- ---------------------------
- Other sales
--------------------------- -------------- -------------------- ---------------------------
Forus S.A. 86.963.200-7 Affiliate Advertising hired
--------------------------- -------------- -------------------- ---------------------------
Inversiones Bayona S.A. 86.755.600-1 Majority shareholder Dividends paid
--------------------------- -------------- -------------------- ---------------------------
Vina Los Vascos S.A. 89.150.900-6 Indirect affiliate Direct sales
--------------------------- -------------- -------------------- ---------------------------
- Materials purchased
--------------------------- -------------- -------------------- ---------------------------
Cia. Sud-Americana 90.160.000-7 Same Parent Freight services received
de Vapores S.A.
--------------------------- -------------- -------------------- ---------------------------
- Other sales
--------------------------- -------------- -------------------- ---------------------------
- Product sold
--------------------------- -------------- -------------------- ---------------------------
Cia. Electro 90.320.000-6 Majority shareholder Dividends paid
Metalurgica S.A.
--------------------------- -------------- -------------------- ---------------------------
- Materials purchased
--------------------------- -------------- -------------------- ---------------------------
- Other sales
--------------------------- -------------- -------------------- ---------------------------
Sudamericana Agencias 92.048.000-4 Indirect affiliate Freight services received
Maritimas S.A.
--------------------------- -------------- -------------------- ---------------------------
- Containers rentered
--------------------------- -------------- -------------------- ---------------------------
Empresa Editora Zig-Zag 90.684.000-6 Indirect affiliate Services purchased
--------------------------- -------------- -------------------- ---------------------------
--------------------------- ---------------------------------------------------------------
TRANSACTIONS 03-31-2004 03-31-2003
--------------------------- ---------------------------------------------------------------
Company Amount Effect on Result Amount Effect on Result
--------------------------- ---------- -------------------- ---------- --------------------
Serv. Y Consultorias 346,258 -346,258 320,898 -320,898
Hendaya S.A.
--------------------------- ---------- -------------------- ---------- ----------------------
85,190 0 119,267 0
--------------------------- ---------- -------------------- ---------- ----------------------
4,615 4,615 5,034 5,034
--------------------------- ---------- -------------------- ---------- ----------------------
67 21 0 0
--------------------------- ---------- -------------------- ---------- ----------------------
Claro y Cia. 20,560 -20,560 15,474 -15,474
--------------------------- ---------- -------------------- ---------- ----------------------
96 30 108 36
--------------------------- ---------- -------------------- ---------- ----------------------
Quemchi S.A. 2,545 2,545 3,135 3,135
--------------------------- ---------- -------------------- ---------- ----------------------
Rayen Cura S.A.I.C. 32,033 9,241 37,895 0
--------------------------- ---------- -------------------- ---------- ----------------------
Navarino S.A. 2,531 2,531 2,506 2,506
--------------------------- ---------- -------------------- ---------- ----------------------
Ediciones Financieras S.A. 0 0 2,379 788
--------------------------- ---------- -------------------- ---------- ----------------------
68 -68 64 -64
--------------------------- ---------- -------------------- ---------- ----------------------
4,657 -4,657 10,297 -10,297
--------------------------- ---------- -------------------- ---------- ----------------------
Soc Agric. Cullipeumo Ltda. 9,728 0 0 0
--------------------------- ---------- -------------------- ---------- ----------------------
Metropolis Intercom S.A. 0 0 3,518 1,166
--------------------------- ---------- -------------------- ---------- ----------------------
79,834 -79,924 67,950 58,722
--------------------------- ---------- -------------------- ---------- ----------------------
Envases CMF S.A. 169,248 0 115,018 0
--------------------------- ---------- -------------------- ---------- ----------------------
0 0 92 30
--------------------------- ---------- -------------------- ---------- ----------------------
1,313 0 146 0
--------------------------- ---------- -------------------- ---------- ----------------------
Forus S.A. 7,632 3,816 11,900 11,900
--------------------------- ---------- -------------------- ---------- ----------------------
Inversiones Bayona S.A. 88,688 0 124,163 0
--------------------------- ---------- -------------------- ---------- ----------------------
Vina Los Vascos S.A. 204,434 48,994 141,924 40,130
--------------------------- ---------- -------------------- ---------- ----------------------
18,179 0 7,531 0
--------------------------- ---------- -------------------- ---------- ----------------------
Cia. Sud-Americana 13,458 -10,684 125,723 -12,223
de Vapores S.A.
--------------------------- ---------- -------------------- ---------- ----------------------
0 0 659 0
--------------------------- ------------------------------- ---------- ----------------------
5,879 5,523 903 299
--------------------------- ------------------------------- ---------- ----------------------
Cia. Electro 326,700 0 457,380 0
Metalurgica S.A.
--------------------------- ------------------------------- ---------- ----------------------
2,676 0 1,800 0
--------------------------- ------------------------------- ---------- ----------------------
812 226 92 0
--------------------------- ------------------------------- ---------- ----------------------
Sudamericana Agencias 33,429 -33,429 0 0
Maritimas S.A.
--------------------------- ------------------------------- ---------- ----------------------
1,582 0 0 0
--------------------------- ------------------------------- ---------- ----------------------
Empresa Editora Zig-Zag 107 -107 0 0
--------------------------- ------------------------------- ---------- ----------------------
07. Inventory
An itemized list of inventory, valued according to note 2 h), is presented on
an attached chart.
-------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
NOTE 7 - INVENTORY (Consolidated)
-------------- --------------
2004 2003
Th Ch$ Th Ch$
------------------------------------------------- -------------- --------------
Finished Products
* Cristalerias de Chile S.A. 3,578,344 2,350,612
* S.A. Vina Santa Rita 9,081,250 7,854,776
Subtotal Finished Products 12,659,594 10,205,388
------------------------------------------------- -------------- --------------
Raw Materials and Fuel
* Cristalerias de Chile S.A. 1,018,554 1,611,679
* S.A. Vina Santa Rita 21,079,905 21,876,798
Subtotal Raw Materials and Fuel 22,098,459 23,488,477
------------------------------------------------- -------------- --------------
Supply Materials and Parts
* Cristalerias de Chile S.A. 952,789 1,049,208
* S.A. Vina Santa Rita 1,037,395 1,881,918
Subtotal Supply Materials and Parts 1,990,184 2,931,126
Materials in Transit 448,866 627,189
--------------------
------------------------------------------------- -------------- --------------
Red Televisiva Megavision S.A. (CIECSA S.A.)
---------------------------------------------
------------------------------------------------- -------------- --------------
* Foreign, taped, for broadcast 1,232,555 3,230,256
* Domestic programming, to be broadcast 558,230 636,964
------------------------------------------------- -------------- --------------
Subtotal Red Televisiva Megavision S.A. 1,790,785 3,867,220
------------------------------------------------- -------------- --------------
Total 38.987.888 41.119.400
------------------------------------------------- -------------- --------------
08. Deferred taxes and income taxes
A) DEFERRED TAXES.
Accumulated balances of deferred taxes for temporary differences, and their
composition in the income tax account for effects of fiscal year results and
recognition of deferred taxes, are presented on the attached charts.
Amortization periods of deferred taxes have been estimated on average at 1
year for Short-Term Assets, 4 years for Long-Term Assets, and 14 years for
Long-term Liabilities.
B) INCOME TAX
The parent company and its subsidiary S.A. Vina Santa Rita, made tax
provisions of 17% of taxable income in 2004 (16.5% in 2003) subject to the
First Category and 35% for the Single Income Tax under Art. 21, for the 2004
and 2003 fiscal years.
The other consolidated subsidiaries maintain negative taxable incomes and
therefore have not provisioned for this concept.
Credits against taxes are shown deducting the payable obligation.
The itemized list is the following:
2004 2003
Th Ch$ Th Ch$
Fiscal year income tax reserve (1,002,751) (1,115,303)
Single tax reserve (3,023) (2,646)
---------- ----------
SUB TOTAL (1,005,774) (1,117,949)
Credits:
Monthly reserve payments 1,029,319 967,800
Training expenditures 2,255 13,191
Fixed Assets credit 1,397 13,167
Donations 1,113 45,940
---------- ----------
CREDIT SUB TOTAL 1,061,217 1,040,098
Income Tax 55,443 (77,851)
Income Tax to be Recovered 0 0
Other Taxes to be recovered:
VAT Fiscal Credit 729,854 593,618
Income tax credit, previous year 3,693,603 613,563
TOTAL TAXES TO BE ---------- ----------
RECOVERED 4,451,767 1,129,330
C) TAXABLE PROFIT FUND
The parent company registered the following balance of profits to be
distributed:
2004 Th Ch$ 2003 Th Ch$
Generated as of 12.31.1983:
Profits adjustment 1,909,034 1,909,034
Generated since 01.01.1984:
Without Credit 1,927,678 1,072,115
With 10% First Category Credit 22,604 22,694
With 15% First category Credit 85,494,024 92,502,240
With 15% Additional rate Credit 722 722
With 16% First Category Credit 14,420,569 16,906,651
With 16.5% First Category Credit 7,535,097 0
With 17% First Category Credit 4,612,724 0
----------- ----------
SUB-TOTAL TAX PROFITS 114,013,418 116,454,445
Non-income revenues 6,798,030 6,825,087
----------- ----------
TOTAL RETAINED EARNINGS 120,811,448 128,279,532
-------------------------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
-------------------------------------------------------------------------------------------------
NOTE 8 - DEFERRED TAXES AND INCOME TAX
----------------------------------------- -------------------------------------------------------
DEFERRED TAXES 03-31-2004
----------------------------------------- -------------------------------------------------------
Item Asset Deferred Tax Liability Deferred Tax
----------------------------------------- -------------------------------------------------------
Short term Long Term Short Term Long Term
----------------------------------------- ------------- ------------- ------------- -------------
Temporary Differences
----------------------------------------- ------------- ------------- ------------- -------------
Reserve non-collectable accounts 116,115 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Prepaid Income 465,510 0 0 0
----------------------------------------- ------------- ------------ ------------- --------------
Vacation provision 128,915 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Intangible Amortization 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Leased assets 0 0 0 0
----------------------------------------- ------------- ------------- ------------ --------------
Manufacturing expenses 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Depreciations fixed assets 0 0 0 8,514,349
----------------------------------------- ------------- ------------- ------------- -------------
Severance payments 1,510 143,689 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Other events 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Packaging reserve 174,115 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Furnace repair provision 0 646,311 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Stock obsolescence provision 35,900 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Spare parts obsolescence provision 100,106 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Lower value sale of bonds 91,812 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Non realized profits 145,232 7,993 0
----------------------------------------- ------------- ------------- ------------- -------------
Other provisions 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Direct labor 11,337 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Depreciation accumulated automobile 0 18,596 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Tax losses 0 4,598,484 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Lower bonds placement 0 0 53,428 749,877
----------------------------------------- ------------- ------------- ------------- -------------
Prepaid expenses 0 0 51,054 0
----------------------------------------- ------------- ------------- ------------- -------------
Banking reserve 0 0 0 34,869
----------------------------------------- ------------- ------------- ------------- -------------
Fixed assets, molds 0 0 0 248,990
----------------------------------------- ------------- ------------- ------------- -------------
Commercial brands 1,264 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Amortization commercial brands 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Expenses assetted 0 0 215,807 0
----------------------------------------- ------------- ------------- ------------- -------------
Deferred customs duties 116,369 20,334 0 75,915
----------------------------------------- ------------- ------------- ------------- -------------
Valuation provision Machinery repair 6,967 0 0 0
provision
----------------------------------------- ------------- ------------- ------------- -------------
Other expenses provision 95,001 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Others
----------------------------------------- ------------- ------------- ------------- -------------
Supplementary accounts-net of amort. 5,005 3,353,293 0 3,606,040
----------------------------------------- ------------- ------------- ------------- -------------
Valuation provision 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Total 1,485,148 2,082,114 320,289 6,017,960
----------------------------------------- ------------- ------------- ------------- -------------
----------------------------------------- -------------------------------------------------------
DEFERRED TAXES 03-31-2003
----------------------------------------- -------------------------------------------------------
Item Asset Deferred Tax Liability Deferred Tax
----------------------------------------- -------------------------------------------------------
Short term Long Term Short Term Long Term
----------------------------------------- ------------- ------------- ------------- -------------
Temporary Differences
----------------------------------------- ------------- ------------- ------------- -------------
Reserve non-collectable accounts 109,758 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Prepaid Income 430,798 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Vacation provision 116,444 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Intangible Amortization 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Leased assets 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Manufacturing expenses 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Depreciations fixed assets 0 14,781 0 8,206,606
----------------------------------------- ------------- ------------- ------------- -------------
Severance payments 2,131 148,063 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Other events 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Packaging reserve 172,496 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Furnace repair provision 193,105 354,571 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Stock obsolescence provision 35,356 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Spare parts obsolescence provision 97,193 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Lower value sale of bonds 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Non realized profits 124,257 61,912 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Other provisions 63,435 0 14,644 0
----------------------------------------- ------------- ------------- ------------- -------------
Direct labor 21,502 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Depreciation accumulated automobile 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Tax losses 0 4,639,753 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Lower bonds placement 67,740 0 53,357 810,398
----------------------------------------- ------------- ------------- ------------- -------------
Prepaid expenses 0 0 25,705 0
----------------------------------------- ------------- ------------- ------------- -------------
Banking reserve 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Fixed assets, molds 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Commercial brands 33,175 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Amortization commercial brands 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Expenses assetted 0 240,003 0
----------------------------------------- ------------- ------------- ------------- -------------
Deferred customs duties 2,305 592 0 83,578
----------------------------------------- ------------- ------------- ------------- -------------
Valuation provision Machinery repair 0 0 0 0
provision
----------------------------------------- ------------- ------------- ------------- -------------
Other expenses provision 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Others
----------------------------------------- ------------- ------------- ------------- -------------
Supplementary accounts-net of amort. 198,083 3,950,255 0 3,821,025
----------------------------------------- ------------- ------------- ------------- -------------
Valuation provision 0 0 0 0
----------------------------------------- ------------- ------------- ------------- -------------
Total 1,271,582 1,269,417 333,709 5,603,178
----------------------------------------- ------------- ------------- ------------- -------------
--------------------------------------------------------------------------------------- -------------------------------
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
--------------- ---------------
INCOME TAX 03/31/2004 03/31/2003
--------------- ---------------
Th Ch$ Th Ch$
--------------------------------------------------------------------------------------- --------------- ---------------
Current tax expense (tax provision) -1,005,774 -1,117,949
Adjustment tax expense (previous year) 0 0
Effects from assets or liabilities, deferred year's tax 367,076 -281,339
Tax benefit from tax losses 0 0
Effect of amortiz. of supplementary accounts for deferred assets and liabilities -176,689 -127,387
Effect on assets or liabilities from deferred tax from changes in assessment provision 0 0
Other charges or credits to the account 0 5,225
--------------------------------------------------------------------------------------- --------------- ---------------
Total -815,387 -1,521,340
--------------------------------------------------------------------------------------- --------------- ---------------
09. Short and Long-term Leasing Contracts and Assets for Leasing
As of March 31, 2004 balances for this concept are not included.
10. Other current assets
As of March 31, 2004, investments under this item are included in
A) Financial instruments with resale agreements for Th Ch$ 18,045,225
valued according to note 2 q),
B) Deferred expenses for bonds placement for Th Ch$ 360,720,
C) Th Ch$ 15,014 for cash reserve
As of March 31, 2003, there were investments in:
a) Financial instruments with resale agreements for Th Ch$ 16,447,554
valued according to note 2 q),
b) Deferred expenses for bonds placement for Th Ch$ 362,238,
c) Th Ch$ 28,452 for cash reserve and
d) Balance in favor for Th Ch$ 86,144 for Future Contracts in foreign
currency.
11. Information on operations involving purchase agreements, sales
agreements, sale with repurchase agreement, and
purchase with resale agreement of titles or movable
securities
Information about these transactions is presented in attached charts.
---------------------------------------------------------------------------------------------------------------------------
NOTE 11 - INFORMATION ON PURCHASE COMMITMENT, SALE COMMITMENT,
SALE WITH REPURCHASE AGREEMENTS AND PURCHASE WITH RESALE AGREEMENTS
OPERATIONS OF TITLES AND REAL ESTATE SECURITIES
PURCHASE (CV) AND SALE (CV) COMMITMENT OPERATIONS
---------------------------------------------------------------------------------------------------------------------------
Dates
---------------------------------------------------------------------------------------------------------------------------
Code Counterpart Original Price Rate Final Instrument Market Value
------------------------------------------------------------- ---------- ------- --------- ------------- ------------------
Start End Currency Set Value
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.28.2004 04.06.2004 B.C.I. C.B. Pesos 1,825,000 0.16 1,825,584 BCPO-PDBC 1,825,000
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.22.2004 04.02.2004 Banco de Chile Pesos 600,000 0.16 600,352 PRD 600,288
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.28.2004 04.08.2004 Banco de Chile Pesos 950,000 0.18 950,456 PRD 950,000
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.22.2004 04.02.2004 Banco de Chile Pesos 80,000 0.16 80,047 PRD 80,038
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.28.2004 04.08.2004 Banco de Chile Pesos 450,000 0.18 450,216 PRD 450,000
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.28.2004 04.08.2004 Banco de Chile Pesos 80,000 0.18 80,038 PRD 80,000
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.28.2004 04.08.2004 Banco de Chile Pesos 45,000 0.18 45,022 PRD 45,000
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.28.2004 04.02.2004 Banchile Pesos 1,460,000 0.18 1,460,350 PRC 1,460,175
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 02.05.2004 04.05.2004 Banco Santander Pesos 280,000 0.18 281,008 PRBC 280,941
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 02.18.2004 04.26.2004 Banco Santander Pesos 280,000 0.18 281,142 PRBC 280,722
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 02.25.2004 04.05.2004 Banco Santander Pesos 250,000 0.17 250,567 PRBC 250,510
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 02.25.2004 04.23.2004 Banco Santander Pesos 250,000 0.18 250,870 PRBC 250,540
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 02.27.2004 07.19.2004 Banco Santander Pesos 200,000 0.18 201,716 PRBC 200,408
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.08.2004 05.05.2004 Banco Santander Pesos 280,000 0.17 280,920 PRBC 280,381
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.08.2004 05.25.2004 Banco Santander Pesos 200,000 0.17 200,884 PRBC 200,272
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.19.2004 04.20.2004 Banco Santander Pesos 250,000 0.16 250,427 PRBC 250,173
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.31.2004 04.07.2004 Banco Santander Dollars 2,781,443 1.65 2,725,913 PRD-PDBC 2,781,443
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.26.2004 04.01.2004 Santander Investment Pesos 3,500,000 0.11 3,500,770 PDBC-PRD 3,500,642
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.30.2004 04.05.2004 Santander Investment Pesos 2,120,000 0.15 2,120,636 PRC-BCD 2,120,106
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.18.2004 04.08.2004 Santander Agente de Pesos 800,000 0.18 801,008 PRD 800,624
Valores
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.05.2004 04.02.2004 BankBoston N.A. Pesos 366,945 0.14 367,424 PRD 367,390
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.28.2004 04.07.2004 Banco Bilbao Vizcaya Dollars 604,514 1.40 598,697 PRD 597,918
Argentaria
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.31.2004 04.07.2004 Banco BBVA Dollars 137,106 1.40 135,647 PRD 135,610
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
CRV 03.31.2004 04.07.2004 Banco BBVA Dollars 259,879 1.40 257,113 PRD 257,044
----- ---------- ----------- --------------------- ---------- ---------- ------- --------- ------------- ------------------
12. Fixed Assets
Fixed Assets:
CRISTALERIAS DE CHILE S.A.
The Fixed Assets are revalued according to note 2 j) and the main goods under
this item as of March 31, 2004 and 2003 are the ones detailed in the annexed
chart.
The items that make up the Company's fixed assets as of March 31, 2004 and
2003 include mainly Land, Industrial Constructions, Infrastructure Works,
Machinery, and Equipment distributed between the Padre Hurtado and other
minor.
S.A.Vina Santa Rita
The increase in lands corresponds to the operation of exchange conducted
between Vina Santa Rita S.A. and Empresa ded Transporte y Excavaciones Ltda.
(TRANSEX LTDA.)
TRANSEX LTDA. granted Vina Santa Rita two pieces of land that totalize
27,242.67 m2, and Vina Santa Rita S.A. granted TRANSEX LTDA. a piece of land
of 30,983.35 m2, both located in Buin. Both parts agreed the price of exchange
for the sum of Ch$ 269,000.
Technical Reappraisal and Adjustment of Accounting Values
The parent company carried out a technical reappraisal of its fixed assets in
1979. In June 1986 it also adjusted the assets. Both operations were carried
out according to the provisions established in Circular Letters No. 1529 and
No. 550 respectively of the Securities and Insurance Commission.
The effects of these operations, including write-offs of property, are shown
on the attached chart.
Depreciations
The charge against results for this item is Th Ch$ 3,611,972 in 2004 and Th
Ch$ 3,450,711 in 2003.
The detail is shown on an attached chart.
---------------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A. AND SUBSIDIARIES
---------------------------------------------------------------------------------------
NOTE 12 - FIXED ASSETS
--------------------------------------------------------- ------------- -------------
2004 2003
Th Ch$ Th Ch$
--------------------------------------------------------- ------------- -------------
Land
--------------------------------------------------------- ------------- -------------
Land and Mining Properties 13,267,675 12,995,463
--------------------------------------------------------- ------------- -------------
Subtotal Lands 13,267,675 12,995,463
--------------------------------------------------------- ------------- -------------
Buildings and Infrastructure Projects
--------------------------------------------------------- ------------- -------------
Hi rises and industrial buildings 30,351,913 29,971,138
--------------------------------------------------------- ------------- -------------
Installations 31,459,955 30,648,388
--------------------------------------------------------- ------------- -------------
Residences 26,081 26,083
--------------------------------------------------------- ------------- -------------
Subtotal 61,837,949 60,645,609
--------------------------------------------------------- ------------- -------------
Depreciations
--------------------------------------------------------- ------------- -------------
Accumulated (21,703,441) (18,736,333)
--------------------------------------------------------- ------------- -------------
Fiscal year (751,977) (742,349)
--------------------------------------------------------- ------------- -------------
Subtotal Depreciations (22,455,418) (19,478,682)
--------------------------------------------------------- ------------- -------------
Subtotal Constructions and Projects 39,382,531 41,166,927
--------------------------------------------------------- ------------- -------------
Machinery and Equipment
--------------------------------------------------------- ------------- -------------
Machinery 94,429,339 83,977,342
--------------------------------------------------------- ------------- -------------
Furnaces 46,032,554 35,912,456
--------------------------------------------------------- ------------- -------------
Furniture and Furnishings 2,632,148 2,454,254
--------------------------------------------------------- ------------- -------------
Tools 685,673 624,165
--------------------------------------------------------- ------------- -------------
Rolling Stock 904,504 825,224
--------------------------------------------------------- ------------- -------------
Subtotal 144,684,218 123,793,441
--------------------------------------------------------- ------------- -------------
Depreciations
--------------------------------------------------------- ------------- -------------
Accumulated (73,429,332) (62,792,548)
--------------------------------------------------------- ------------- -------------
Fiscal year (3,001,256) (2,656,474)
--------------------------------------------------------- ------------- -------------
Subtotal Depreciations (76,430,588) (65,449,022)
--------------------------------------------------------- ------------- -------------
Subtotal Machinery and Equipment 68,253,630 58,344,419
--------------------------------------------------------- ------------- -------------
Other Fixed Assets
--------------------------------------------------------- ------------- -------------
Spare parts 5,608,473 5,394,574
--------------------------------------------------------- ------------- -------------
Imports in transit 155,403 785,913
--------------------------------------------------------- ------------- -------------
Work in progress 3,387,817 8,205,218
--------------------------------------------------------- ------------- -------------
Lots in Pirque and Leyda 447,233 472,652
--------------------------------------------------------- ------------- -------------
Deferred Customs Duties 162,282 383,750
--------------------------------------------------------- ------------- -------------
Packages and Bundling 302,092 234,545
--------------------------------------------------------- ------------- -------------
Other 2,104,856 1,978,851
--------------------------------------------------------- ------------- -------------
Subtotal Other Fixed Assets 12,168,156 17,455,503
--------------------------------------------------------- ------------- -------------
Subtotal Fixed Assets 231,957,998 214,890,016
--------------------------------------------------------- ------------- -------------
Subtotal Accumulated Depreciation (95,132,773) (81,528,881)
--------------------------------------------------------- ------------- -------------
Subtotal Depreciation of the Period (3,753,233) (3,398,823)
--------------------------------------------------------- ------------- -------------
Net Total 133,071,992 129,962,312
--------------------------------------------------------- ------------- -------------
--------------------------------------------------------- ------------- -------------
TECHNICAL REVALUATION AND ADJUSTMENT TO ACCOUNTING VALUES
--------------------------------------------------------- ------------- -------------
2004 2003
Th Ch$ Th Ch$
--------------------------------------------------------- ------------- -------------
Land
--------------------------------------------------------- ------------- -------------
Land 311,360 311,374
--------------------------------------------------------- ------------- -------------
Subtotal net land and mining properties 311,360 311,374
--------------------------------------------------------- ------------- -------------
Buildings and Infrastructure Projects
--------------------------------------------------------- ------------- -------------
High rises and industrial buildings 6,221,315 6,221,626
--------------------------------------------------------- ------------- -------------
Installations 41,118 41,120
--------------------------------------------------------- ------------- -------------
Subtotal Buildings 6,262,433 2,262,746
--------------------------------------------------------- ------------- -------------
Depreciation:
--------------------------------------------------------- ------------- -------------
Accumulated (5,035,336) (4,828,036)
--------------------------------------------------------- ------------- -------------
Fiscal year (51,885) (51,889)
--------------------------------------------------------- ------------- -------------
Subtotal depreciation (5,087,221) (4,879,925)
--------------------------------------------------------- ------------- -------------
Subtotal Net Buildings 1,175,212 1,382,821
--------------------------------------------------------- ------------- -------------
Machinery and Equipment
--------------------------------------------------------- ------------- -------------
Furnaces 0 526,694
--------------------------------------------------------- ------------- -------------
Machinery 0 574,817
--------------------------------------------------------- ------------- -------------
Subtotal Machinery and Equipment 0 1,101,511
--------------------------------------------------------- ------------- -------------
Depreciation Accumulated 0 (1,101,511)
--------------------------------------------------------- ------------- -------------
Subtotal depreciation 0 (1,101,511)
--------------------------------------------------------- ------------- -------------
Subtotal Machinery and Equipment 0 0
--------------------------------------------------------- ------------- -------------
Subtotal Net Technical Revaluation 1,486,572 1,694,195
--------------------------------------------------------- ------------- -------------
TOTAL REVALUED ASSETS 6,573,793 7,675,631
--------------------------------------------------------- ------------- -------------
TOTAL ACCUMULATED DEPRECIATION (5,035,336) (5,929,547)
--------------------------------------------------------- ------------- -------------
TOTAL DEPRECIATION OF THE PERIOD (51,885) (51,889)
--------------------------------------------------------- ------------- -------------
NET TOTAL 1,486,572 1,694,195
--------------------------------------------------------- ------------- -------------
13. Sales transactions with leaseback
These type of transactions were not carried out as of March 31, 2004 and 2003.
14. Investments in related companies
Investments outstanding as of March 31, 2004 and 2003 are detailed as follows:
METROPOLIS INTERCOM S.A.
On April 30, 2003 the shareholders of Metropolis -Intercom S.A. decided to
increase the capital of the company by means of the issue of 3,923,834 shares
with a price of Ch$ 1,256.67 each, which represented Th Ch$ 4,931,000. This
increase was subscribed 50% by Cristalchile Comunicaciones S.A., and 50% by
Liberty Comunicaciones de Chile Uno Ltda.
The payment of this subscription was made by de subsidiary Cristalchile
Comunicaciones S.A. on September 29, 2003, paying 1,961,917 shares for a value
of Th Ch$ 2,462,794.
With this purchase the subsidiary participates indirectly in a 47.795% and
directly in 2.205% of the equity of Metropolis -Intercom S.A.
CIECSA S.A.
On August 26, 2003 the shareholders of CIECSA S.A. agreed to increase the
capital of the company by means of the issue of 36,400,000 shares, equivalent
to Th Ch$ 9,10,000, which were totally subscribed and paid by Cristalerias de
Chile S.A.
This capital increase allowed CIECSA S.A. to complete financing to pay to the
balance of Th US$ 2,100 that was owed to Televisa S.A., from the purchase of
7,885,472 shares of Megavision S.A. made in August, 2002.
MEGAVISION S.A.
On August 27, 2002, CIECSA purchased from Televisa S.A. the amount of
7,885,472 shares of Megavision, corresponding to the totality of Televisa
S.A.'s participation in Megavision.
The price of the shares of Televisa S.A. in Megavision was US$ 4,200,000,
equivalent to US$ 0.532625 per share. The companies agreed that the price would
be paid as follows: US$ 2,100,000 in cash, on August 27, 2002 and the balance
to be paid on August 27, 2003.
On the other hand CIECSA S.A. sold to the related company Servicios y
Consultorias Hendaya S.A. 3,600 shares of Megavision S.A. at a price of US$
0.532625 per share.
As a result of these transactions, the participation of CIECSA in the equity
of Megavision reached 99.99%.
EDICIONES CHILOE S.A.
On September 27, 2003, the shareholders of Ediciones Chiloe agreed to increase
capital by Th Ch$ 684,308 through the issue of 1,500,395 shares, which were
subscribed both by CIECSA S.A. and Recoletos Chile Ltda.
From the mentioned capital increase there are 135,030 shares outstanding
payment, for which the payment due date is September 2004.
INVESTMENTS ABROAD
RAYEN CURA S.A.I.C.
On January 31, April 25 and June 30 of 2003 Rayen Cura S.A.I.C. carried out
repayment of capital paid on April 29, 2002. Amounts reimbursed totaled Th US$
2,600.
As of March 31, 2004 the financial statements of Rayen Cura S.A.I.C. recognize
an exchange rate of $ 2.84 Argentine pesos per US dollar. CristalChile
Inversiones S.A in turn adjusted the financial statements of Rayen Cura
S.A.I.C. in order to acknowledge the devaluation from $2.91 (exhange rate as
of December 31, 2003) and $2.84 Argentine pesos per US dollar as of March 31,
2004.
For the effect of results of this affiliate and the conversion of financial
statements of Rayen Cura S.A.I.C. according to the Chilean normative,
CristalChile Inversiones S.A. has acknowledged an income of Th Ch$ 237,283 at
of March 31, 2004 and Th Ch$ 167,109 as of March 31, 2003.
On the other hand, the variations in the exchange rate of the dollar in Chile
during 2004 originated adjustments in the investment in Rayen Cura S.A.I.C.
for goodwill from the purchase of shares of such subsidiary, a credit of Th
Ch$ 697,051 in 2004 (credit of Th Ch$ 278,770 in March 2003).
As stipulated in Technical Bulletin No. 64 of the Accountants Association of
Chile, following is the information related to investments abroad is
presented:
2004 2003
Th$ Th$
CristalChile Inversiones's share of
Rayen Cura S.A.I.C. 12,628,259 14,694,495
Negative goodwill (net of amortization) 4,305,901 5,439,971
----------- -----------
TOTAL 16,934,160 20,134,466
=========== ===========
Loss from devaluation (2,004,292) (1,955,840)
Accrued Income (loss) 237,283 (167,109)
The investment in Rayen Cura S.A.I.C. is controlled in dollars of the United
States of America.
----------------------------------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
----------------------------------------------------------------------------------------------------------
NOTE 14 - INVESTMENTS IN RELATED COMPANIES
BREAKDOWN OF INVESTMENTS
--------------- --------------------------- ------------------------------------ -------------------------
R.U.T. COMPANY Investment Shareholder
(Percentage)
----------- ----------- ------------
Country Control Number of
of Currency Shares
Origin
----------- ----------- ------------ ------------ ------------
03-31-2004 03-31-2003
--------------- --------------------------- ----------- ----------- ------------ ------------ ------------
78.619.410-5 Cordillera Comunicaciones Chile Peso 0 50.00000 50.00000
Holding
--------------- --------------------------- ----------- ----------- ------------ ------------ ------------
78.619.370-2 Cordillera Comunicaciones Chile Peso 0 0.25000 0.25000
Ltda.
--------------- --------------------------- ----------- ----------- ------------ ------------ ------------
89.150.900-6 Vina Los Vascos S.A. Chile Peso 60,000,000 43.00000 43.00000
--------------- --------------------------- ----------- ----------- ------------ ------------ ------------
90.684.000-6 Editorial Zig-Zag S.A. Chile Peso 114,596,213 49.89000 49.89000
--------------- --------------------------- ----------- ----------- ------------ ------------ ------------
96.793.770-3 Ediciones Chiloe S.A. Chile Peso 1,570,146 50.00000 50.00000
--------------- --------------------------- ----------- ----------- ------------ ------------ ------------
96.826.870-8 Inmobiliaria Don Alberto Chile Peso 3,817 38.17000 38.17000
S.A.
--------------- --------------------------- ----------- ----------- ------------ ------------ ------------
86.881.400-4 Envases CMF S.A. Chile Peso 28,000 50.00000 50.00000
--------------- --------------------------- ----------- ----------- ------------ ------------ ------------
0-E Rayen Cura S.A.I.C Argentina Dollar 1,376,000 40.00000 40.00000
--------------- --------------------------- ----------- ----------- ------------ ------------ ------------
96.806.690.-0 Proser S.A. Chile Peso 0 0.50000 0.50000
--------------- --------------------------- ----------- ----------- ------------ ------------ ------------
96.787.750-6 Metropolis Intercom S.A. Chile Peso 88,970,214 2.20514 0.00000
--------------- --------------------------- ----------- ----------- ------------ ------------ ------------
96,939,140-6 Simetral S.A. Chile Peso 1,188,006 81.50000 81.50000
--------------- --------------------------- ----------- ----------- ------------ ------------ ------------
TOTAL
--------------- --------------------------- ----------- ----------- ------------ ------------ ------------
-------------------------------------------------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
-------------------------------------------------------------------------------------------------------------------------
NOTE 14 - INVESTMENTS IN RELATED COMPANIES
BREAKDOWN OF INVESTMENTS
--------------- --------------------------- -----------------------------------------------------------------------------
R.U.T. COMPANY Company Net Result of
Equity Income Accrual
------------ ------------ ------------ ------------ ------------ ------------
03-31-2004 03-31-2003 03-31-2004 03-31-2003 03-31-2004 03-31-2003
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
78.619.410-5 Cordillera Comunicaciones 127,447,675 141,897,532 -4,115,681 -2,992,322 -2,057,840 -1,496,162
Holding
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
78.619.370-2 Cordillera Comunicaciones 128,118,266 142,701,308 -4,136,363 -3,007,359 -10,341 -7,518
Ltda.
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
89.150.900-6 Vina Los Vascos S.A. 13,529,814 12,073,526 115,782 253,477 49,786 108,995
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
90.684.000-6 Editorial Zig-Zag S.A. 926,272 711,576 100,711 -61,764 50,267 -30,817
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
96.793.770-3 Ediciones Chiloe S.A. 1,278,550 1,390,352 -155,329 -230,614 -93,843 -115,306
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
96.826.870-8 Inmobiliaria Don Alberto -118 35 0 0 0 0
S.A.
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
86.881.400-4 Envases CMF S.A. 32,865,650 32,696,734 372,423 546,135 186,212 273,066
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
0-E Rayen Cura S.A.I.C 31,570,646 36,736,238 593,207 417,772 237,283 167,109
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
96.806.690.-0 Proser S.A. -12,200 0 -61 0 0 0
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
96.787.750-6 Metropolis Intercom S.A. 72,669,634 0 -3,269,310 0 -72,012 0
--------------- --------------------------- ------------ ------------ ------------ ------------------------- ------------
96,939,140-6 Simetral S.A. 0 0 0 0 0 0
--------------- --------------------------- ------------ ------------ ------------ ------------------------- ------------
TOTAL
--------------- --------------------------- ------------ ------------ ------------ ------------------------- ------------
-------------------------------------------------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
-------------------------------------------------------------------------------------------------------------------------
NOTE 14 - INVESTMENTS IN RELATED COMPANIES
BREAKDOWN OF INVESTMENTS
--------------- --------------------------- -----------------------------------------------------------------------------
R.U.T. COMPANY VPP Income not Book value
Realized of Investment
------------ ------------ ------------ ------------ ------------ ------------
03-31-2004 03-31-2003 03-31-2004 03-31-2003 03-31-2004 03-31-2003
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
78.619.410-5 Cordillera Comunicaciones 63,738,838 70,993,766 0 0 63,738,838 70,993,766
Holding
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
78.619.370-2 Cordillera Comunicaciones 320,295 356,753 0 0 320,295 356,753
Ltda.
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
89.150.900-6 Vina Los Vascos S.A. 5,817,820 5,191,616 0 0 5,817,820 5,191,616
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
90.684.000-6 Editorial Zig-Zag S.A. 462,336 355,040 0 0 462,336 355,040
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
96.793.770-3 Ediciones Chiloe S.A. 639,275 695,176 165,313 205,441 473,962 489,735
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
96.826.870-8 Inmobiliaria Don Alberto -45 13 0 0 -45 13
S.A.
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
86.881.400-4 Envases CMF S.A. 15,969,037 16,348,367 0 0 15,969,037 16,348,367
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
0-E Rayen Cura S.A.I.C 12,628,259 14,694,495 0 0 12,628,259 14,694,495
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
96.806.690.-0 Proser S.A. -60 0 0 0 -60 0
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
96.787.750-6 Metropolis Intercom S.A. 1,602,467 0 0 0 1,602,467 0
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
96,939,140-6 Simetral S.A. 0 0 0 0 0 0
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
TOTAL 101,178,222 108,635,226 165,313 205,441 101,012,909 108,429,785
--------------- --------------------------- ------------ ------------ ------------ ------------ ------------ ------------
15. Investments in other companies
Investments in other companies that totaled Th Ch$ 804,671 in March 31, 2004
(Th Ch$ 821,513 in 2003) are shown on attached charts.
--------------------------------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
--------------------------------------------------------------------------------------------------------
NOTE 15 - INVESTMENTS IN OTHER CORPORATIONS
--------------------- -------------------------- -------------- --------------- ------------------------
R.U.T. Company Name Number of Shareholding Book Value
------------------------
Shares (Percentage) 03-31-2004 03-31-2003
--------------------- -------------------------- -------------- --------------- ------------ -----------
96.895.100-9 Internet Holding S.A. 57,104 7.4200 204,171 220,982
--------------------- -------------------------- -------------- --------------- ------------ -----------
0-E Bazuca.com Inc. 266,500 7.8900 600,500 600,531
--------------------- -------------------------- -------------- --------------- ------------ -----------
16. Goodwill Amortization
NEGATIVE GOODWILL
Stock purchases made in different periods of S.A. Vina Santa Rita, Vina Los
Vascos S.A., Ciecsa S.A., Ediciones Financieras S.A. and Rayen Cura S.A.I.C.
have produced negative goodwill whose net balance to be amortized as of March
31, 2004 totaled Th Ch 8,956,092 (Th Ch$ 9,682,180 in 2003).
POSITIVE GOODWILL
As of March 31, 2004 and 2003 the parent company and the subsidiaries do not
show any balance for this item.
More information is available on attached charts.
-----------------------------------------------------------------------------------------------------------------------
CRISTALERIAS DE CHILE S.A.
-----------------------------------------------------------------------------------------------------------------------
NOTE 16 - GOODWILL ON INVESTMENTS
NEGATIVE GOODWILL
---------------------------------------------- ---------------------------------- -------------------------------------
03-31-2004 03-31-2003
R.U.T. Company Name
-------------- ------------------------------- ---------------------------------- -------------------------------------
Amount Amortiz. Goodwill Amount Amortiz. Goodwill
this period Balance this period Balance
-------------- ------------------------------- ------------------ --------------- ------------------ ------------------
0-E Rayen Cura S.A. 69,450 4,305,901 82,424 5,439,971
-------------- ------------------------------- ------------------ --------------- ------------------ ------------------
86.547.900-K S.A. Vina Santa Rita 12,482 543,761 12,482 593,717
-------------- ------------------------------- ------------------ --------------- ------------------ ------------------
96.608.270-4 Ciecsa S.A. 30,157 1,296,762 30,159 1,417,461
-------------- ------------------------------- ------------------ --------------- ------------------ ------------------
89.150.900-6 Vina Los Vascos S.A. 23,268 1,139,810 22,181 1,206,742
-------------- ------------------------------- ------------------ --------------- ------------------ ------------------
90.684.000-6 Editorial Zig-Zag S.A. 1,580 100,310 1,580 106,636
-------------- ------------------------------- ------------------ --------------- ------------------ ------------------
79.952.350-7 Red Televisiva Megavision S.A. 13,249 864,612 13,250 917,653
-------------- ------------------------------- ------------------ --------------- ------------------ ------------------
96.787.750-6 Metropolis Intercom S.A. 9,038 704,936 0 0
-------------- ------------------------------- ------------------ --------------- ------------------ ------------------
TOTAL 159,224 8,956,092 162,076 9,682,180
-------------- ------------------------------- ------------------ --------------- ------------------ ------------------
17. Intangibles
The following values are included in this item:
Th Ch$ Th Ch$
2004 2003
Concession of Channel 9
frequency and regional network 10,129,357 10,129,861
Trademarks 1,628,171 1,593,224
TOTAL INTANGIBLES 11,757,528 11,723,085
========== ==========
ACCUMULATED AMORTIZATIONS
From Channel 9 Frequency (1,003,671) (862,391)
From Trademarks (254,512) (185,151)
TOTAL AMORTIZATIONS (1,258,183) (1,047,542)
========== ==========
18. Others (Assets)
As of March 2004 and 2003 its composition is the following:
2004 2003
Th Ch$ Th Ch$
Celulosa Arauco bonds (*) 9,068,445 10,754,702
Price differential bond acquisition(*) 46,601 170,716
Negative goodwill Bond Sale (Net) 2,219,922 2,414,627
Expenses of bond sales 1,008,015 1,174,189
Cash Reserve 0 16,597
Foreign programs to be exhibited over
a year from the present 629,035 1,351,598
Long-Term Tax VAT Vina Dona Paula 567,415 355,419
Share of Las Araucarias Golf Club 2,495 2,495
Other 25,860 95,116
---------- ----------
Total 13,567,788 16,335,459
========== ==========
(*) Investment in Celulosa Arauco bonds equivalent to US$ 13,420,000 at an
annual rate of 6.95% and maturity on September 15, 2005, Th Ch$ 46,601 for
Price differential paid in the acquisition of Celulosa Arauco bonds will be
amortized in the same term of the due date.
Considering that there is the intention of maintaining the Celulosa Arauco and
Constitucion S.A. bonds until their due date on September 15, 2005, the
valuation and registration of the bonds fulfills the provisions in Circular
Letter No. 368 of the S.V.S., as Long-term Fixed Rate Instruments.
19. Short-term obligations with banks and financial institutions
A detailed list of operations is shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 19- OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS, SHORT TERM
Type of Currency and Readjustment Index
------------------------------------------------------------------------------
R.U.T. Bank or Financial Dollars Euros Yen Other Foreign
Institution Currencies
---------------------- -------------- -------------- ----------------------
03-31-2004 03-31-2003 03-31- 03-31- 03-31- 03-31- 03-31-2004 03-31-2003
2004 2003 2004 2003
-------------- ---------------------------- ---------- ---------- ------ ------ ------ ------ ---------- ----------
Short term (code: 5.21.10.10)
0-E Banco Regional de Cuyo 0 0 0 0 0 0 15,223 9,827
97.036.000-K Banco Santander Santiago 0 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0 0
TOTAL 0 0 0 0 0 0 15,223 9,827
Amount capital due 0 0 0 0 0 0 14,943 9,827
Annual average interest rate 0.00 0.00 0.00 0.00 0.00 0.00 1.96 3.20
Long Term - Short Term (code: 5.21.10.20)
0-E JP Morgan Chase Bank 129,318 445,743 0 0 0 0 0 0
97.036.000-K Banco Santander Santiago 0 0 0 0 0 0 0 0
97.008.000-7 Citibank NA 1,691,314 2,020,655 0 0 0 0 0 0
0-E Banco Dresner 0 0 0 0 0 0 0 0
0-E Banco Argentaria 225,241 267,739 0 0 0 0 0 0
97.018.000-1 Scotiabank 0 0 0 0 0 0 0 0
97.006.000-6 Banco Credito e Inversiones 0 0 0 0 0 0 0 0
97.004.000-4 Banco de Chile 0 0 0 0 0 0 0 0
97.030.000-5 Banco Estado 0 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0 0
TOTAL 2,045,873 2,734,137 0 0 0 0 0 0
Amount capital due 1,905,492 2,261,452 0 0 0 0 0 0
Average annual interest rate 1.72 2.01 0.00 0.00 0.00 0.00 0.00 0.00
Percentage oblig. foreign curr. (%) 51.0000
Percentage oblig. foreign curr. (%) 49.0000
Type of Currency and
Readjustment Index
----------------------
R.U.T. Bank or Financial U.F. Non adjustable $ Total
Institution
---------------------- ---------------------- ----------------------
03-31-2004 03-31-2003 03-31-2004 03-31-2003 03-31-2004 03-31-2003
-------------- ---------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Short term (code: 5.21.10.10)
0-E Banco Regional de Cuyo 0 0 0 0 15,223 9,827
97.036.000-K Banco Santander Santiago 0 0 0 0 0 0
Other 0 0 0 0 0 0
TOTAL 0 0 0 0 15,223 9,827
Amount capital due 0 0 0 0 14,943 9,827
Annual average interest rate 0.00 0.00 0.00 0.00
Long Term - Short Term (code: 5.21.10.20)
0-E JP Morgan Chase Bank 0 0 0 0 129,318 445,743
97.036.000-K Banco Santander Santiago 475,428 476,661 0 0 475,428 476,661
97.008.000-7 Citibank NA 0 0 0 0 1,691,314 2,020,655
0-E Banco Dresner 0 0 0 0 0 0
0-E Banco Argentaria 0 0 0 0 225,241 267,739
97.018.000-1 Scotiabank 441,121 421,201 0 0 441,121 421,201
97.006.000-6 Banco Credito e Inversiones 168,738 168,462 0 0 168,738 168,462
97.004.000-4 Banco de Chile 616,738 307,485 0 0 616,738 307,485
97.030.000-5 Banco Estado 0 0 268,877 268,804 268,877 268,804
Other 0 0 0 0 0 0
TOTAL 1,702,025 1,373,809 268,877 268,804 4,016,775 4,376,750
Amount capital due 1,634,018 1,310,821 264,447 264,374 3,803,957 3,836,647
Average annual interest rate 5.78 3.79 4.94 4.94
20. Other Current Liabilities
As of March 31, 2004 and 2003 there are balances of Th Ch$ 2,128,273 and Th
Ch$ 1,112,135 respectively, corresponding to differentials in favor of
financial institutions for future contracts in foreing currency subscribed by
the parent company and the subsidiaries S.A. Vina Santa Rita and Ciecsa S.A.
(see note 34).
21. Long-term obligations with banks and financial institutions
The obligations with banks and financial institutions are presented on the
charts attached.
CRISTALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Institution Years of Maturity
------------------------ --------------------------------------------------------------
Bank or Currency More than 1 More than 2 More than 3 More than 5
R.U.T. Financial adjustment up to 2 up to 3 up to 5 up to 10
Institution index
-------------- ------------------------ ---------- ----------- ----------- ----------- -----------
Thou Ch$ Thou Ch$ Thou Ch$ Thou Ch$
0-E Banco Regional de Cuyo Other 10,140 28,493 10,000 0
currency
97.030.000-7 Banco Estado Non- 273,379 264,375 0 0
adjustment
97.036.000-K Banco Santander Santiago UF 455,283 455,283 227,643 0
97.018.000-1 Banco Scotiabank UF 403,665 403,665 403,665 0
0-E J.P. Morgan Chase Bank Dollars 0 15,410,250 15,410,250 0
90.008.000-K Citibank N.A. Dollars 0 0 0 0
Dollars 0 0 0 0
97.006.000-6 Banco Credito e UF 168,208 0 0 0
Inversiones
97.004.000-5 Banco de Chile UF 0 0 0 0
0-E Banco Argentaria Dollars 0 0 0 0
Total 1,310,675 16,562,066 16,051,558 0
Percentage of obligations in foreign currency 91.0000%
Percentage of obligations in local currency 9.0000%
Institution Years of Maturity Closing date Closing date
Current period Previous
period
------------------------ ---------------------------------- -------------------------- ------------
More than 10 years
----------------------
Bank or Currency Amount Period Total Long- Annual Total Long-
R.U.T. Financial adjustment Term at average Term at
Institution index closing interest closing
of Financial rate of Financial
Statements Statements
-------------- ------------------------ ---------- ---------- ---------- ------------ ------------ ------------
Thou Ch$
0-E Banco Regional de Cuyo Other 0 0 48,633 2.84 60,798
currency
97.030.000-7 Banco Estado Non- 0 0 537,754 4.94 806,414
adjustment
97.036.000-K Banco Santander Santiago UF 0 0 1,138,209 TAB 180+1.8% 1,589,966
97.018.000-1 Banco Scotiabank UF 0 0 1,210,995 TAB 180+2.0% 1,611,088
0-E J.P. Morgan Chase Bank Dollars 0 0 30,820,500 1.9875 36,578,000
90.008.000-K Citibank N.A. Dollars 0 0 0 0 1,996,318
Dollars 0 0
97.006.000-6 Banco Credito e UF 0 0 168,208 TAB 90+2.0% 335,672
Inversiones
97.004.000-5 Banco de Chile UF 0 0 0 0 1,211,029
0-E Banco Argentaria Dollars 0 0 0 0 267,739
Total 0 33,924,299 44,457,024
22. Short-term and long-term obligations with the public
(promissory notes and bonds)
The balance for the short-term as of March 31, 2004 was Th Ch$ 1,123,089, Th
Ch$ 1,323,579 in 2003, corresponding to accrued interests for bonds issued by
the Parent Company. In addition there is a balance of Th Ch$ 214,367 for
principal amortization of bonds series A of the subsidiary S.A. Vina Santa
Rita.
As of March 31, 2004, there are long-term obligations with the public for Th
Ch$ 89,150,346 (Th Ch$ 88,953,080 in 2003), of which Th Ch$ 68,965,362 (Th Ch$
68,812,760 in 2003) correspond to bonds issued in UF's by the parent company
of series C1, C2, D1, D2 and Th Ch$ 20,184,984 (Th Ch$ 20,140,320 in 2003)
correspond to bond of series C and D issued by the subsidiary S.A. Vina Santa
Rita.
This liability is shown in detail in the appendix.
Cristalerias de Chile S.A.
NOTE 22: SHORT-TERM AND LONG-TERM OBLIGATIONS WITH PUBLIC
(PROMISSORY NOTES AND BONDS)
BONDS
INSTALLMENTS
-------------------------
REGISTRATION OR CURRENT INDEXING
IDENTIFICATION No. DEPOSIT UNIT OF INTEREST FINAL INTEREST AMORTIZATION
OF INSTRUMENT SERIES FACE VALUE BOND RATE MATURITY PAYMENT PAYMENT
----------------- ------------ ---------- -------- -------- ---------- ----------- ------------
LONG-TERM BONDS-
CURRENT PORTION
296-09.07.02 C1 Interests 0 UF 4.75 07-15-2004 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 C2 Interests 0 UF 4.75 07-15-2004 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 D1 Interests 0 UF 5.80 07-15-2004 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 D2 Interests 0 UF 5.80 07-15-2004 SEMI-ANNUAL SEMI-ANNUAL
144-12.07.91 A 0 UF 6.70 06-01-2004 SEMI-ANNUAL SEMI-ANNUAL
241-15.12.00 C1 Interests 0 UF 6.25 06-01-2004 SEMI-ANNUAL SEMI-ANNUAL
241-15.12.00 D1 Interests 0 UF 6.25 06-01-2004 SEMI-ANNUAL SEMI-ANNUAL
241-15.12.00 D2 Interests 0 UF 6.25 06-01-2004 SEMI-ANNUAL SEMI-ANNUAL
TOTAL CURRENT
PORTION
LONG-TERM BONDS
296-09.07.02 C1 1,500,000 UF 4.75 07-15-2008 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 C2 500,000 UF 4.75 07-15-2008 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 D1 1,900,000 UF 5.80 07-15-2023 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 D2 200,000 UF 5.80 07-15-2023 SEMI-ANNUAL SEMI-ANNUAL
241-15.12.00 C1 200,000 UF 6.25 12-15-2005 SEMI-ANNUAL SEMI-ANNUAL
241-15.12.00 D1 100,000 UF 6.25 12-15-2021 SEMI-ANNUAL SEMI-ANNUAL
241-15.12.00 D2 900,000 UF 6.25 12-15-2021 SEMI-ANNUAL SEMI-ANNUAL
144-12/07/91 A 0 UF 6.70 06-01-2003 SEMI-ANNUAL SEMI-ANNUAL
LONG-TERM TOTAL
PAR VALUE
----------------------
REGISTRATION OR ISSUE
IDENTIFICATION No. IN CHILE OR
OF INSTRUMENT SERIES 03-31-2004 03-31-2003 ABROAD
----------------- ------------ ---------- ---------- -----------
LONG-TERM BONDS-
CURRENT PORTION
296-09.07.02 C1 Interests 250,078 246,241 LOCAL
296-09.07.02 C2 Interests 83,359 82,080 LOCAL
296-09.07.02 D1 Interests 385,812 379,893 LOCAL
296-09.07.02 D2 Interests 40,612 39,989 LOCAL
144-12.07.91 A 0 214,367 LOCAL
241-15.12.00 C1 Interests 60,538 60,168 LOCAL
241-15.12.00 D1 Interests 30,269 30,084 LOCAL
241-15.12.00 D2 Interests 272,421 270,757 LOCAL
TOTAL CURRENT
PORTION 1,123,089 1,323,579
LONG-TERM BONDS
296-09.07.02 C1 25,231,230 25,175,400 LOCAL
296-09.07.02 C2 8,410,410 8,391,800 LOCAL
296-09.07.02 D1 31,959,558 31,888,840 LOCAL
296-09.07.02 D2 3,364,164 3,356,720 LOCAL
241-15.12.00 C1 3,364,164 3,356,720 LOCAL
241-15.12.00 D1 1,682,082 1,678,360 LOCAL
241-15.12.00 D2 15,138,738 15,105,240 LOCAL
144-12/07/91 A 0 0 LOCAL
LONG-TERM TOTAL 89,150,346 88,953,080
23. Provisions and Write-Offs
Provisions
The Company has short-term provisions of Th Ch$ 11,649,530 as of March 31,
2004, and Th Ch$ 9,657,719 in 2003.
Long-term provisions of Th Ch$ 6,001,842 and Th Ch$ 6,063,280 are recorded for
the years 2004 and 2003 respectively.
In the attached chart a detail for provisioned amounts is shown.
Bad Debt Provisions:
The parent company and the subsidiaries S.A. Vina Santa Rita and Ciecsa S.A.
have established a bad debt provision of Th Ch$ 683,032 and Th Ch$ 649,839 as
of March 31, 2004 and 2003, respectively.
This provision is deducted from the balance of Debtors from Sales and
Documents Receivable.
Vacation Provision:
The parent company and its subsidiaries have established provisions for the
total cost of vacations pending as of March 31, 2004 and 2003, as established
in Technical Bulletin No. 47 of the Accountants Association of Chile.
The net balance for this item is Th Ch$ 755,921 as of March 31, 2004 (Th Ch$
694,013 in 2003).
Provision for Furnace Reconstruction:
This reserve is established throughout the useful life of the refractants of
each smelting furnace so their repair will not distort the result of the
fiscal year when the repairs are made.
The Company has established a reserve in the amount of Th Ch$ 3,801,830 and Th
Ch$ 3,268,385 as of March 31, 2004 and 2003, respectively.
CRISTALERIAS DE CHILE S.A.
NOTE 23: PROVISIONS AND WRITE-OFFS
CONSOLIDATED
----------------------------------------------------------------------
03-31-2004 03-31-2003
---------- ----------
Thou Ch$ Thou Ch$
Short Term
Commissions and Fees 2,991,204 2,500,931
Furnace reconstruction 1,935,527 1,170,334
Share of Board of Directors 464,570 1,086,638
Legal holidays 755,921 694,013
Local and foreign suppliers 758,044 728,114
Packing return to clients 965,535 1,024,731
Spareparts reserve 438,189 463,350
Insurance Policies 0 464,977
Advertising and marketing 861,653 154,275
Copyright 38,334 29,895
Severance Legal 182,055 171,373
Severance payments 0 133,484
Reserve (loss) exported product 84,362 109,734
Grape harvest expenses 1,108,087 370,398
Reserve indirect cost 257,556 334,781
Other reserves 898,493 220,691
TOTAL 11,649,530 9,657,719
Long Term
Severance payment 4,135,539 3,965,229
Furnace reconstruction 1,866,303 2,098,051
TOTAL 6,001,842 6,063,280
24. Severance Payment
The provision for severance payments to personnel is included at its current
value, as expressed in note 2 t).
As of March 31, 2004 it amounts to Th Ch$ 4,317,594 (Th Ch$ 4,136,602 in
2003).
As of March 31, 2004, the parent company has paid severance payments of Th Ch$
70,729 (Th Ch$ 802 in 2003) chargeable against the provision.
25. Other long-term liabilities
As of March 31, 2004 and 2003 there are no balances for this item.
26. Minority interest
The subsidiaries that generate minority interests as of March 31, 2004 and
2003 are shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 26: MINORITY INTEREST
SUBSIDIARY COMPANY NET WORTH RESULTS SHAREHOLDING
------------------------- -------------------------- -------------------
Thou Ch$ Thou Ch$ Thou Ch$ Thou Ch$ % %
2004 2003 2004 2003 2004 2003
--------------------------------- ----------- ----------- ----------- ----------- -------- --------
S.A.Vina Santa Rita 37,814,344 37,208,571 (634,973) (553,704) 45.90 45.90
CIECSA Consolidated 303,108 257,393 8,721 12,698 1.55 1.73
Apoger S.A. and subsidiaries 910 1,172 27 60 20.00 20.00
Cristalchile Comunicaciones S.A. 1,216 1,412 40 30 0.01 0.01
TOTAL 38,119,578 37,468,548 (626,185) (540,915)
27. Changes in Equity
a. Activity in 2004 and 2003
The activity of the capital and reserve accounts in the fiscal years ended in
March 31, 2004 and 2003, are shown in the attached charts.
b. Other Reserves
The detail of this item is as follows:
2004 2003
---------- ----------
Th Ch$ Th Ch$
Future capital increases 4,671,348 4,464,029
Reserve for adjustment of value of fixed assets 1,486,571 1,694,196
Adjustment for conversion difference in
investment in Rayen Cura S.A.I.C. 1,143,830 4,099,356
Difference VPP Sodex (217,163) (217,173)
--------- ---------
TOTAL OTHER RESERVES 7,084,586 10,040,408
========= ==========
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NET WORTH
Reserve Reserve
ITEM Paid-in capital Premium in Other Future
Balances as of 03/31/2004 Capital revaluation sale of shares Reserves Dividends
----------------------------------------------- ----------- ----------- -------------- ----------- -----------
Initial balance 65,396,749 0 27,874,377 6,421,900 123,160,119
Distribution result previous fiscal year 0 0 0 0 0
Final dividend previous fiscal year 0 0 0 0 0
Capital increases with cash stock issue 0 0 0 0 0
Reserves and/or Profits Capitalization 0 0 0 0 0
Development period Accumulated deficit 0 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 694,795 0
Owner's equity Revaluation 0 -326,984 -139,372 -32,109 -615,800
Fiscal Year Result 0 0 0 0 0
Provisional Dividends 0 0 0 0 0
Final balances as of 03/31/2004 65,396,749 -326,984 27,735,005 7,084,586 122,544,319
Initial balance as of 03/31/2003 64,749,257 0 27,598,393 9,713,099 114,912,655
Distribution result previous fiscal year 0 0 0 0 0
Final dividend previous fiscal year 0 0 0 0 0
Capital increases with cash stock issue 0 0 0 0 0
Reserves and/or profit Capitalization 0 0 0 0 0
Development period accumulated deficit 0 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 278,744 0
Owner's equity revaluation 0 323,746 137,992 48,565 574,663
Fiscal Year Result 0 0 0 0 0
Provisional Dividends 0 0 0 0 0
Final balances 64,749,257 323,746 27,736,385 10,040,408 115,487,218
Updated Final Balances as of 03/31/2003 64,749,257 323,746 27,736,385 10,040,408 115,487,218
ITEM Accumulated Provisional Devel. Fiscal
Balances as of 03/31/2004 Results Dividends Period Deficit Year Result
----------------------------------------------- ----------- ----------- -------------- -----------
Initial balance 0 0 0 0
Distribution result previous fiscal year 6,426,520 0 0 0
Final dividend previous fiscal year -958,080 0 0 0
Capital increases with cash stock issue 0 0 0 0
Reserves and/or Profits Capitalization 0 0 0 0
Development period Accumulated deficit 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 0
Owner's equity Revaluation -27,342 0 0 0
Fiscal Year Result 0 0 0 2,566,553
Provisional Dividends 0 0 0 0
Final balances as of 03/31/2004 5,441,098 0 0 2,566,553
Initial balance as of 03/31/2003 0 0 0 0
Distribution result previous fiscal year 17,660,662 0 0 0
Final dividend previous fiscal year -3,303,936 0 0 0
Capital increases with cash stock issue 0 0 0 0
Reserves and/or profit Capitalization 0 0 0 0
Development period accumulated deficit 0 0 0
Accumulated conversion difference adjustment 0 0 0 0
Owner's equity revaluation 71,784 0 0 0
Fiscal Year Result 0 0 0 4,321,062
Provisional Dividends 0 0 0 0
Final balances 14,428,510 0 0 4,321,062
Updated Final Balances as of 03/31/2003 14,428,510 0 0 4,321,062
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH - NUMBER OF SHARES
SERIES No. No. No.
SHARES SHARES SHARES
SUBSCRIBED PAID WITH VOTING
RIGHT
-------------- --------------- ----------------- -------------------
SINGLE 64,000,000 64,000,000 64,000,000
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH - CAPITAL (AMOUNT - TH CH$)
SERIES SUBSCRIBED PAID-IN
CAPITAL CAPITAL
------------------ --------------- -----------------
SINGLE 65,396,749 65,396,749
28. Other Non-Operating Income and Disbursements
As of March 31, 2004 and 2003 the non-operating income totals Th Ch$ 419,032
and Th Ch$ 137,520 respectively.
Non-operating Expenditures were Th Ch$ 501,109 in 2004 and Th Ch$ 536,153 in
2003.
More detail is shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 28: OTHER NON-OPERATING INCOME AND EXPENSES
2004 2003
-------- --------
Th Ch$ Th Ch$
INCOME
Offices and establishments rental 52,757 43,860
Tax exemptions 45,130 4,139
Benefit Fontec proyect 0 5,443
Amortization of non-realized profits 18,218 18,732
Sale of fixed assets 0 4,041
Exchange of lands 230,883 0
Agriculture division 0 20,846
Sale of materials 4,591 4,753
Miscellaneous Income 67,453 35,706
TOTAL NON-OPERATING INCOME 419,032 137,520
EXPENSES
Charges drama series and others 0 32,376
Frequency and internet amortization 40,147 37,060
Professional advice 189,112 194,021
Share of Board of Directors 27,652 23,388
Contracts and eventualities 0 45,527
Loss in sales of fixed assets 49,479 2,373
Honorary audits 1,615 0
Amortization Fontec proyect 0 30,727
Trademarks amortization 13,850 13,074
Insurance 12,541 10,691
Personnel Contracts Finished 25,665 21,311
Other expenses 141,048 125,605
TOTAL NON-OPERATING EXPENSES 501,109 536,153
29. Adjustment for Price Level Restatements
As a result of the application of the adjustment for price level restatements
as described in Note 2 e), there was a net credit to results in the 2004
fiscal year in the amount of Th Ch$ 344,520 and of Th Ch$ 156,293 in 2003.
Additional information organized by item on the Balance Sheet is shown on the
attached chart.
Cristalerias de Chile S.A.
NOTE 29: ADJUSTMENT FOR PRICE LEVEL RESTATEMENTS
ADJUSTABILITY
ASSETS (DEBITS)/CREDITS INDEX 03-31-2004 03-31-2003
---------------------------------------- ------------- ----------- -----------
INVENTORY CPI -100,070 87,714
FIXED ASSETS CPI -676,034 668,346
INVESTMENTS IN RELATED COMPANIES CPI -614,868 1,288,877
MARKETABLE SECURITIES CPI -20,773 18,997
SHORT-TERM DEBTORS CPI -16,398 -22,518
SHORT-TERM DEBTORS UF 867 809
LONG-TERM DEBTORS UF -983 725
ACCOUNTS RECEIVABLE RELATED COMPANIES UF -121,857 51,766
OTHER NON-MONETARY ASSETS CPI -3,855 233,538
EXPENSE AND COST ACCOUNTS CPI -292,687 238,627
TOTAL (DEBITS)/CREDITS -1,846,658 2,566,881
LIABILITIES (DEBITS)/CREDITS
NET WORTH CPI 1,141,608 -1,990,017
ACCOUNTS PAYABLE RELATED COMPANIES UF 33 -5
BANK LOANS UF 10,263 -3,965
SHORT-TERM RESERVES CPI -364 -11,709
LONG-TERM BANK LOANS UF 15,065 -10,307
LONG-TERM RESERVES CPI -3,554 -20,061
LONG-TERM CREDITORS CPI 196 -109
OBLIGATIONS WITH THE PUBLIC UF 525,654 -209,738
MINNORITY INTEREST CPI 172,819 -428
NON-MONETARY LIABILITIES UF 932 -21,092
NON-MONETARY LIABILITIES CPI 18,996 1,954
INCOME ACCOUNTS CPI 309,530 -145,111
TOTAL (DEBITS)/CREDITS 2,191,178 -2,410,588
(LOSS) PROFIT FROM ADJUSTMENT FOR CURRENCY DEVALUATION 344,520 156,293
30. Rate of Exchange Differential
There is a net credit to results in the 2004 fiscal year of Th Ch$ 1,364,143
and of Th Ch$ 1,661,984 in 2003 because of a rate of exchange differencial.
According to circular No. 1560 of the SVS, the net effect of adjustments of
assets and liabilities adjustable in foreign currency minus local inflation
effect, is presented under this item.
More information is shown on the attached chart.
Cristalerias de Chile S.A.
NOTE 30: EXCHANGE DIFFERENCES
AMOUNT
------------------------------
ITEM CURRENCY 03-31-2004 03-31-2003
---------------------------------------- ------------- ----------- -----------
CURRENT ASSETS DOLLARS 414,721 150,763
CURRENT ASSETS OTHER CUR. 6,342 -35,202
LONG-TERM ASSETS DOLLARS 23,073 0
CLIENTS DOLLARS 73,170 234,582
CLIENTS OTHER CUR 258,623 35,503
TIME DEPOSITS DOLLARS 43,797 -102,492
INVENTORY DOLLARS 45,249 150,432
BOND INVESTMENT DOLLARS 305,398 231,941
FUTURE CONTRACT EFFECT DOLLARS -9,609 1,304,942
OTHER ASSETS DOLLARS 104,637 2,196
OTHER ASSETS OTHER CUR -10,343 4,190
INFLATIONARY EFFECT DOLLARS 135,607 -170,436
MARKETABLE SECURITIES DOLLARS 1,118,588 974,083
MARKETABLE SECURITIES EUROS 334,861 0
TOTAL (CHARGES) CREDITS 2,884,114 2,780,502
SHORT-TERM BANK CREDITS DOLLARS -739 0
ACCOUNT PAYABLE DOLLARS -30,939 0
DOCUMENTS PAYABLE DOLLARS -91,103 -61,673
DOCUMENTS PAYABLE OTHER CUR. -8,571 -15,647
MISCELLANEOUS CREDITORS SHORT TERM DOLLARS -25,108 -40,833
SHORT TERM RESERVES DOLLARS -3,449 -58,122
LONG-TERM BANK CREDITS DOLLARS -1,130,500 -647,500
LONG TERM RESERVES DOLLARS -136,718 -28,590
OTHER LONG-TERM LIABILITIES DOLLARS 36,686 -205,311
OTHER LONG-TERM LIABILITIES OTHER CUR. -84,109 -29,330
LONG-TERM CREDITORS DOLLARS -5,421 -31,512
TOTAL (CHARGES) CREDITS -1,479,971 -1,118,518
(LOSS) PROFIT FROM RATE OF EXCHANGE DIFFERENCE 1,364,143 1,661,984
31. Extraordinary Items
As of March 31, 2004 and 2003 there are no transactions in this item.
32. Expenses for the issue and placement of stocks and debt instruments
The parent company and the subsidiary S.A. Vina Santa Rita carried out bond
placements in August 2002 and March 2001 respectively, incurring in placement
expenses that as of March 31, 2004 totaled Th Ch$ 3,588,657 (Th Ch$ 3,951,054
in 2003).
The charge against results for the amortization of these expenses is Th Ch$
114,044 (Th Ch$ 90,829 in 2003) during the 2004 fiscal year. It is done
according to the maturity of each series.
Detail is as follows:
DETAILS 2004 2003
-------------------------- -------------------------
Th Ch$ Th Ch$
Short-Term Long-Term Short-Term Long-Term
------------------------------------ ---------- --------- ---------- ---------
Difference in placement rate 196,663 2,219,923 196,228 2,414,628
Stamps tax 153,559 1,008,014 154,967 1,163,147
Bonds placement Commission and others 10,498 0 11,042 11,042
Total 360,720 3,227,937 362,237 3,588,817
33. Cash Flow Statement
CASH FLOW STATEMENT
The values included in MISCELLANEOUS on the Cash Flow Statement are detailed
in the attached appendix.
CRISTALERIAS DE CHILE S.A.
CASH FLOW STATEMENT
1. The following it the detail of the item: OTHERS:
2004 2003
-------- ---------
Th Ch$ Th Ch$
541.11.40 Other Income Received
VAT exports recovery 161,063 114,352
Discount customs duties payment 7,376 0
Perceived Readjustments 128,298 0
Income Tax refund 0 133,416
Rentals 14,058 12,779
Tax exemption 45,130 4,139
Other income 68,565 124,311
Total 424,490 388,997
541.11.80 Other expenses paid
Exchange difference 26,047 168,532
Donations 26,794 7,770
Municipal Patents 378 0
Finished personnel contracts 25,665 21,311
Advisory services 38,312 34,470
Board participation 27,652 23,388
Other expenses 91,274 211,683
Total 236,122 467,154
541.13.30 Other income from investments
Maturity of future contracts 0 1,762,160
Total 0 1,762,160
541.13.65 Other investment disbursements
Purchase of shares 0 11,680
Total 0 11,680
Following are financing and investment activities that did not generate cash
flow during the fiscal year, but that commit future parent company cash flows:
ITEM Amount Th Ch$ Due Date
-------------------------- ------------- -----------------
Dividend 157 (1,612,800) April-2004
Amounts payable investment (113,317) 2nd Semester 2004
Total (1,726,117)
34. Derivative Contracts
FUTURE CONTRACTS IN FOREIGN CURRENCY
The parent company and its subsidiary S.A. Vina Santa Rita have signed future
purchases contracts in foreign currency of Th US$ 42,600 and sales of Th
Ch$ 39,600 in 2004 (Th US$ 131,200 in 2003) subject to the regulations of
Chapter VII of the Compendium of International Exchange Regulations of the
Central Bank of Chile and Chapter 13-2 of the compilation of Regulations of
Banks and Financial Institutions.
Additional information is presented on the attached chart listed in the order
of each quarterly expiration period.
The Contracts maintained by the companies as of March 31, 2004 and 2003 have
been taken to shelter from the variations of the exchange rate of the American
dollar (contracts of existing and expected transactions) as well as
investment.
Forward contracts are taken in order to hedge existing parties are related,
according to administration, with hedging dollar obligations maintained by the
Company. As stated in technical Bulletin No. 57 of the Chilean Accountants
Association, results generated by these contracts are recognized in results as
long as they recognize the effects of parties subject to hedging.
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS
DESCRIPTION OF CONTRACTS
--------------------------------------------
PROTECTED ITEM OR
TRANSACTION
----------------------
MATURITY
OR PURCHASE/
TYPE OF TYPE OF VALUE OF EXPIRATION SPECIFIC SALE
DERIVATIVE CONTRACT CONTRACT DATE ITEM POSITION NAME AMOUNT
---------- -------- ---------- ---------- --------- --------- ----------- ---------
FR CI 23,177,016 THIRD 2004 EXCH RATE P INVESTMENT -
FR CI 21,327,786 THIRD 2004 EXCH RATE S INVESTMENT -
FR CCPE 2,769,040 THIRD 2004 EXCH RATE P DOLLAR LOAN 2,769,040
FR CI 692,260 THIRD 2004 EXCH RATE P INVESTMENT -
FR CI 621,570 THIRD 2004 EXCH RATE S INVESTMENT -
FR CI 633,250 THIRD 2004 EXCH RATE S INVESTMENT -
ACCOUNTS AFFECTED
--------------------------------------------------
ASSETS/LIABILITIES EFFECT ON RESULT
----------------------- -------------------------
VALUE OF
TYPE OF TYPE OF VALUE OF PROTECTED
DERIVATIVE CONTRACT CONTRACT ITEM NAME AMOUNT REALIZED NOT REALIZED
---------- -------- ---------- ---------- ----------- ---------- ----------- ------------
FR CI 23,177,016 - LIABILITIES 2,729,917 -2,729,917 -
FR CI 21,327,786 - ASSETS 964,133 964,133 -
FR CCPE 2,769,040 2,465,640 LIABILITIES 312,601 -4,006 -
FR CI 692,260 - LIABILITIES 78,150 21,608 -
FR CI 621,570 - ASSETS 11,046 -18,613 -
FR CI 633,250 - ASSETS 17,216 -19,445 -
35. Contingencies and Restrictions
CONTINGENCIES AND COMMITMENTS
As of March 31, 2004, there is a guarantee delivered in the amount of Th Ch$
7,885 (Th Ch$ 7,868 in 2003), according to the detail in the attached chart.
LAWSUITS OR OTHER LEGAL ACTIONS THE COMPANY IS INVOLVED IN
As of March 31, 2004 and 2003 there are no lawsuits and other legal actions
pending.
RESTRICTIONS
I. SYNDICATED LOAN
In relation to the syndicated loan subscribed with JP Morgan Chase Bank and
other 8 creditor banks for US$ 50 million, there are certain financial
obligations mentioned as follows:
a) TOTAL CONSOLIDATED DEBT TO CAPITALIZATION RATIO
Cristalerias de Chile S.A will not allow the Total Consolidated Debt to
Capitalization Ratio exceed the 0.45 to 1.0 ratio at any time.
Capitalization is defined as the sum of Net Worth plus Minority Interest plus
total consolidated debt.
b) TOTAL CONSOLIDATED DEBT TO EBITDA RATIO
Cristalerias de Chile S.A will not allow the Net Consolidated Debt to EBITDA
ratio to exceed the 2.5 to 1.0 ratio at any time.
Consolidated EBITDA is defined as the following: operating income plus
depreciation and amortization, plus non-cash charges (as long as they have
been deduced when determining operating income) and cash income from interests
minus non-cash credits (as long as they have been added when determining
operating income), in each case for each period.
c) INTEREST COVERAGE RATIO
Cristalerias de Chile S.A. will not allow the Interest Coverage Ratio to be
lower than the following ratios during the following periods: 3.5 from January
01, 2001 to December 31, 2003; 4.0 from January 01, 2004 onwards.
Interest coverage at the day of determination is defined as the ratio between
unconsolidated EBITDA for the period of four consecutive fiscal quarters that
end on or most recently ended before, that date; and interest expenses for
that period.
d) NET EQUITY
Cristalerias de Chile S.A. should maintain a minimum amount of UF 10,000,000
at any time.
As of March 2004 and 2003 Cristalerias de Chile S.A. complies with 100% of the
restrictions agreed with the creditor banks.
II. BOND ISSUE
The bond issue contract signed on May 29, 2002 with Banco de Chile as the
bonds owners' representative, establishes among others the following
obligations:
a) Financial Indicators
Individual Balance: Indebtedness not higher than 1.2 times.
Consolidate Balance: Indebtedness not higher than 1.4 times.
b) Insurances for the Company and its subsidiaries' fixed assets.
c) The operations refered to by art. 44 and 89 of law 18,046 must be
carried out according to the conditions that these establish.
d) Other minor restrictions related with the bond issue contract.
Cristalerias de Chile S.A. complies with 100% of restrictions agreed with the
bonds' creditors.
OTHER CONTINGENCIES
As of March 31, 2004 and 2003, management is not aware of any other
contingencies that could affect the company.
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - DIRECT GUARANTEES
BALANCES PENDING
PAYMENT AS OF
CLOSING DATE
ASSETS COMMITTED OF FINANCIAL STATEMENTS
---------------------- -------------------------
CREDITOR OF DEBTOR RELATIONSHIP TYPE OF BOOK
GUARANTEE NAME GUARANTEE TYPE VALUE 03/31/2004 03/31/2003
----------------- --------------- ------------ ------------ ---------- ---------- ----------- -----------
EDIFICIO CRISTALERIAS DE COMMERCIAL TIME DEPOSIT FLOOR 7,885 7,885 7,868
METROPOLIS AGF CHILE S.A.
BANCO SANTANDER RED TELEVISIVA COMMERCIAL MORTGAGE LAND 3,402,272 1,613,637 2,066,627
CHILE MEGAVISION
SCOTIABANK RED TELEVISIVA COMMERCIAL PLEDGE TV EQUIP 182,174 1,652,116 2,032,289
MEGAVISION
BANCO CREDITO E RED TELEVISIVA COMMERCIAL MORTGAGE TV EQUIP 34,079 336,946 504,134
INVERSIONES MEGAVISION
SUNDRY CLIENTS RED TELEVISIVA COMMERCIAL ADVERTISING - 0 12,434,784 12,454,210
MEGAVISION
GRUPO TELEVISA RED TELEVISIVA COMMERCIAL PLEDGE SHARE 0 0 1,536,276
S.A.(MEXICO) MEGAVISION
RELEASE OF GUARANTEES
----------------------------------------------------------------------
CREDITOR OF DEBTOR
GUARANTEE NAME 03/31/2005 ASSETS 03/31/2006 ASSETS 03/31/2007 ASSETS
----------------- --------------- ---------- --------- ---------- --------- ---------- ---------
EDIFICIO CRISTALERIAS DE 0 0 0 0 7,885 0
METROPOLIS AGF CHILE S.A.
BANCO SANTANDER RED TELEVISIVA 472,428 0 455,284 0 455,284 0
CHILE MEGAVISION
SCOTIABANK RED TELEVISIVA 441,122 0 403,665 0 403,665 0
MEGAVISION
BANCO CREDITO E RED TELEVISIVA 168,737 0 168,209 0 0 0
INVERSIONES MEGAVISION
SUNDRY CLIENTS RED TELEVISIVA 0 0 0 0 0 0
MEGAVISION
GRUPO TELEVISA RED TELEVISIVA 0 0 0 0 0 0
S.A.(MEXICO) MEGAVISION
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - INDIRECT GUARANTEES
BALANCES PENDING
PAYMENT AS OF
CLOSING DATE
DEBTOR ASSETS COMMITTED OF FINANCIAL STATEMENTS
----------------------------- ---------------------- -------------------------
CREDITOR OF NAME RELATIONSHIP TYPE OF BOOK
GUARANTEE GUARANTEE TYPE VALUE 03/31/2004 03/31/2003
----------------- --------------- ------------ ------------ ---------- ---------- ----------- -----------
Societe des RAYEN CURA AFFILIATE SOLIDARY 0 0 2,130,312 3,371,028
Participations S.A.I.C.
Financieres et
Industrielles
Envases CMF CRISTALERIAS DE AFFILIATE SOLIDARY 0 0 224,261 329,357
guarantee P.I.A.S CHILE S.A.
DEBTOR RELEASE OF GUARANTEES
--------------- ----------------------------------------------------------------------
CREDITOR OF NAME
GUARANTEE 03/31/2005 ASSETS 03/31/2006 ASSETS 03/31/2007 ASSETS
----------------- --------------- ---------- --------- ---------- --------- ---------- ---------
Societe des RAYEN CURA 710,104 0 710,104 0 710,104 0
Participations S.A.I.C.
Financieres et
Industrielles
Envases CMF CRISTALERIAS DE 0 0 0 0 224,261 0
guarantee P.I.A.S CHILE S.A.
CRISTALERIAS DE CHILE S.A.
NOTE 35: Trials Pending
Committed amount
Court Cause Rol No. Origin Stage (approximately Th Ch$)
--------------- -------------- ------- --------------------------------- -----------------------
12 3025-1997 Civil First instance in favor of Mega 100,000
16 4822-1999 Civil First instance against Mega 10,000
1 1242-2000 Labor First instance pending 10,000
5 3468-2001 Labor First instance pending 3,000
1 4391-2003 Labor First instance: dictates prove 2,100
Court of 7643-2000 CNTV Verdict pending 900
Appeals
36. Guarantees obtained from third parties
As of March 31, 2004 and 2003 the company has received guarantees from third
parties that are shown below:
Item
2004 2003
--------- --------
Th Ch$ Th Ch$
Rental of Property Office Banco Security (UF 304) 5,114 5,102
Rental of Property to Telecomunicaciones
Cono Sur Ltda. (UF 130) 0 2,182
Rental of Property Office AGF Building (UF 365.9) 6,155 6,141
Rental of Property Office Metropolis (UF 189.2) 3,182 3,175
Sight drafts suppliers 1,674 1,675
Installation of Buin Tanks (Tersanoix S.A.) 0 155,111
Grape purchase 1,048,057 0
Mortgages 138,523 0
C y CPO Constructora 162,860 0
Purchase of vine stem cuttings and plants (Intelmaq) 0 36,383
Garantia Transportistas 42,000 0
Underground materials storehouse Buin Salfa Montajes 0 33,044
--------- -------
1,407,565 242,813
========= =======
37. Local and Foreign Currency
Charts are attached showing the foreign currency balance as of March 31, 2004
and 2003.
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - ASSETS
Amount
-------------------------------
Items Currency 03-31-2004 03-31-2003
------------------------------------------ ------------------------------ ------------ ------------
Available funds Non-adjust. Ch$ 1,761,345 1,147,522
Other currencies 443,528 1,638
Dollars 607,331 537,746
Euros 14,571 -50,428
Argentine Peso 31,622 53,594
Time deposits Dollars 3,414,232 7,569,134
Adjustable Ch$ 30,338 2,911,930
Marketable Securities Adjustable Ch$ 4,133,777 3,830,015
Dollars 38,725,616 64,662,708
Sales receivable Non-adjust Ch$ 24,114,505 25,391,410
Dollars 3,518,556 4,041,376
Euros 2,550,939 1,945,188
Other currencies 1,916,352 1,476,379
Argentine Peso 28,891 217,092
Documents Receivable Non-adjust. Ch$ 2,446,906 3,829,140
Argentine Peso 5,183 0
Sundry Debtors Euros 20,003 0
Non-adjust. Ch$ 1,213,511 343,016
Adjustable Ch$ 264,881 842,716
Dollars 162,351 42,905
Other currencies 0 0
Argentine Peso 81,532 75,541
Documents and Accts. Receivable Dollars 0 0
Non-adjust. Ch$ 326,016 214,311
Adjustable Ch$ 120,434 127,030
Inventory Adjustable Ch$ 34,887,365 36,851,626
Non-adjust. Ch$ 558,230 278,848
Dollars 2,828,322 3,230,256
Argentine Peso 713,971 758,670
Taxes Receivable Non-adjust. Ch$ 130,634 898,842
Adjustable Ch$ 4,213,427 145,935
Dollars 63,118 9,367
Prepaid expenses Adjustable Ch$ 796,868 992,818
Non-adjust. Ch$ 541,268 253,435
Dollars 373,011 446,514
Argentine Peso 3,162 21,304
Deferred Taxes Non-adjust. Ch$ 701,052 675,273
Other Current Assets Non-adjust. Ch$ 14,400,359 8,870,424
Adjustable Ch$ 248,586 331,541
Dollars 3,772,014 7,722,423
Marketable Securities Non-adjust. Ch$ 25,552 26,535
Time Deposits Non-adjust. Ch$ 3,766,221 8,934,092
Taxes Receivable Argentine Peso 44,588 75,186
Deferred taxes Adjustable Ch$ 463,807 262,600
Marketable Securities Euros 18,897,271 0
Fixed Assets Adjustable Ch$ 134,092,667 131,656,508
Dollars 13,944 0
Euros 451,953 0
Investments in related companies Adjustable Ch$ 88,384,650 108,429,785
Dollars 12,628,259 0
Investments in other companies Adjustable Ch$ 804,671 821,513
Negative Goodwill Adjustable Ch$ 4,650,191 4,242,209
Non-adjust. Ch$ 0 5,439,971
Long-term debtors Adjustable Ch$ 144,589 184,616
Documents receivable in rel.companies Adjustable Ch$ 4,257 1,504
Intangibles Adjustable Ch$ 11,757,528 11,723,085
Amortization Adjustable Ch$ -1,003,671 -1,047,542
Non-adjust. Ch$ -254,512 0
Other Adjustable Ch$ 3,171,829 937,165
Non-adjust. Ch$ 879,712 660,647
Dollars 8,948,707 14,737,647
Argentine Peso 567,540 0
Negative Goodwill Dollars 4,305,901 0
Long-term debtors Dollars 61,641 0
Total Assets
Non-adjust. Ch$ 50,610,799 56,963,466
Other currencies 2,359,880 1,478,017
Dollars 79,423,003 103,000,076
Euros 21,934,737 1,894,760
Argentine Peso 1,476,489 1,201,387
Adjustable Ch$ 287,166,194 303,245,054
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - CURRENT LIABILITIES
ITEM Currency Up to 90 days
---------------------------------- ---------------- ------------------------------------------------------------
03.31.2004 03.31.2003
------------------------ ---------------------------
Amount Avg.Annual Amount Avg.Annual
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
----------- ---------- ----------- ----------
Current Liabilities
Short-term obligations with banks Argentine Peso 0 - 2,457 0
and financial institutions
Long-term obligations with banks Adjust. Ch$ 110,059 5.780 0 0
and financial institutions Dollars 134,438 2.470 134,403 2.450
Non-adjust. Ch$ 733,148 1.720 445,744 0
Obligations with the public Adjust. Ch$ 759,861 10.550 962,571 6.250
Long-term obligations with 1 year Adjust. Ch$ 0 0 1,244 7.00
maturity Dollars 129,318 1.9875 56,142 11.020
Dollars 70,997 10.900 0 0
Dividends payable Non-adjust. Ch$ 41,296 0 78,554 0
Accounts payable Non-adjust. Ch$ 12,521,072 0 15,852,042 0
Dollars 1,068,829 0 1,079,577 0
Euros 147,793 0 0 0
Other currencies 161,898 0 0 0
Argentine Peso 290,156 0 0 0
Documents Payable Dollars 2,063,346 0 4,221,000 0
Adjust. Ch$ 0 0 0 0
Euros 20,507 0 376,419 0
Other currencies 1,400 0 0 0
Sundry Creditors Non-adjust. Ch$ 266,357 0 643,385 0
Dollars 684,524 11.060 2,306,722 0
Withholdings Non-adjust. Ch$ 1,674,611 0 1,766,542 0
Dollars 0 0 0 0
Argentine Peso 0 0 0 0
Prepaid income Non-adjust. Ch$ 2,738,293 0 2,534,105 0
Docts and accts payable to rel co. Non-adjust. Ch$ 250,257 0 168,234 0
Provisions Adjust. Ch$ 19,798 0 3,030 0
Euros 657,964 0 525,601 0
Dollars 1,350,955 0 757,812 0
Non-adjust. Ch$ 6,924,738 0 6,367,243 0
Argentine Peso 11,462 0 83,925 0
Other currencies 366,545 0 426,770 0
Other Current Liabilities Dollars 1,765,784 0 1,112,135 0
Docts and accts payable to rel co. Adjust. Ch$ 15,329 0 42,718 5.650
Other Current Liabilities Adjust. Ch$ 362,489 0 0 0
Total Current Liabilities
- Argentine Peso 301,618 - 86,382 -
- Adjust. Ch$ 1,267,536 - 1,009,563 -
- Non-adjust Ch$ 24,551,062 - 27,544,508 -
- Dollars 7,866,901 - 9,979,132 -
- Euros 826,264 - 902,020 -
- Other currencies 529,843 - 426,770 -
ITEM Currency 90 Days to 1 Year
---------------------------------- ---------------- ------------------------------------------------------------
03.31.2004 03.31.2003
------------------------ ---------------------------
Amount Avg.Annual Amount Avg.Annual
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
----------- ---------- ----------- ----------
Current Liabilities
Short-term obligations with banks Argentine Peso 15,223 2.480 7,370 0
and financial institutions
Long-term obligations with banks Adjust. Ch$ 1,591,966 5.780 1,373,808 0
and financial institutions Dollars 134,439 2.470 134,403 2.450
Non-adjust. Ch$ 1,183,407 1.720 2,288,392 2.020
Obligations with the public Adjust. Ch$ 363,228 6.060 361,008 6.250
Long-term obligations with 1 year Adjust. Ch$ 1,257 7.000 0 0
maturity Dollars 0 0 205,129 11.00
Dollars 62,715 11.330 0 0
Dividends payable Non-adjust. Ch$ 0 0 0 0
Accounts payable Non-adjust. Ch$ 63,093 0 94,640 0
Dollars 113,217 0 2,101,413 0
Euros 0 0 0 0
Other currencies 0 0 0 0
Argentine Peso 0 0 0 0
Documents Payable Dollars 0 0 164,108 0
Adjust. Ch$ 0 0 33,070 0
Euros 0 0 0 0
Other currencies 0 0 0 0
Sundry Creditors Non-adjust. Ch$ 0 0 0 0
Dollars 0 0 0 0
Withholdings Non-adjust. Ch$ 0 0 0 0
Dollars 0 0 0 0
Argentine Peso 0 0 0 0
Prepaid income Non-adjust. Ch$ 0 0 0 0
Docts and accts payable to rel co. Non-adjust. Ch$ 0 0 0 0
Provisions Adjust. Ch$ 182,055 0 171,373 0
Euros 0 0 0 0
Dollars 1,935,527 0 1,170,334 0
Non-adjust. Ch$ 200,486 0 151,631 0
Argentine Peso 0 0 0 0
Other currencies 0 0 0 0
Other Current Liabilities Dollars 0 0 0 0
Docts and accts payable to rel co. Adjust. Ch$ 0 0 0 0
Other Current Liabilities Adjust. Ch$ 0 0 0 0
Total Current Liabilities
- Argentine Peso 15,223 - 7,370 -
- Adjust. Ch$ 2,138,506 - 1,939,259 -
- Non-adjust Ch$ 398,018 - 380,674 -
- Dollars 3,294,866 - 5,929,376 -
- Euros 0 - 0 -
- Other currencies 0 - 0 -
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES CURRENT
PERIOD 03-31-2004
ITEM Currency 1-3 Years 3-5 years
----------------------------- ---------------- ----------------------------- ----------------------------
Amount Average Amount Average
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
------------- ------------- ------------ -------------
Obligations with Banks and Dollars 15,410,250 1.9875 15,410,250 0
Financial Institutions Argentine Peso 48,633 2.48 0 0
Non-adjust. Ch$ 537,754 4.94 0
Adjustable Ch$ 2,517,412 5.78 0
Obligations with the public Adjustable Ch$ 21,026,025 4.75 12,615,615 4.750
Adjustable Ch$ 3,364,164 6.25 75,965 5.8
Deferred Custom duties Dollars 119,614 11.06 0 0
Long-term creditors Adjustable Ch$ 33,249 0 0 0
Adjustable Ch$ 15,234 7.000 0 0
Dollars 15,688 11.54 0 0
Dollars 24,243 0 0 0
Deferred taxes Non-adjust. Ch$ 2,347,230 0 0 0
Adjustable Ch$ 1,588,616 0 0 0
Long-term provisions Dollars 1,866,303 0 0 0
Adjustable Ch$ 4,135,539 0 0 0
Total long-term liabilities
- Dollars 17,436,098 - 15,410,250 -
- Argentine Peso 48,633 - 0 -
- Non-adjust. Ch$ 2,884,984 - 0 -
- Adjustable Ch$ 32,680,239 - 12,691,580 -
ITEM Currency 5-10 Years More than 10 years
----------------------------- ---------------- ----------------------------- ----------------------------
Amount Average Amount Average
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
------------- ------------- ------------ -------------
Obligations with Banks and Dollars 0 0 0 0
Financial Institutions Argentine Peso 0 0 0 0
Non-adjust. Ch$ 0 0 0 0
Adjustable Ch$ 0 0 0 0
Obligations with the public Adjustable Ch$ 0 0 30,310,014 5.8
Adjustable Ch$ 4,937,743 58000 16,820,820 6.25
Deferred Custom duties Dollars 0 0 0 0
Long-term creditors Adjustable Ch$ 0 0 0 0
Adjustable Ch$ 0 0 0 0
Dollars 0 0 0 0
Dollars 0 0 0 0
Deferred taxes Non-adjust. Ch$ 0 0 0 0
Adjustable Ch$ 0 0 0 0
Long-term provisions Dollars 0 0 0 0
Adjustable Ch$ 0 0 0 0
Total long-term liabilities
- Dollars 0 - 0 -
- Argentine Peso 0 - 0 -
- Non-adjust. Ch$ 0 - 0 -
- Adjustable Ch$ 4,937,743 - 47,130,834 -
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES PERIOD PREVIOUS
TO 03-31-2003
ITEM Currency 1-3 Years 3-5 years
----------------------------- ---------------- ----------------------------- ----------------------------
Amount Average Amount Average
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
------------- ------------- ------------ -------------
Obligations with banks Dollars 2,801,667 282 36,846,805 0
and financial institutions Argentine peso 48,569 0 12.228 0
Adjustable Ch$ 4,117,845 379 629,910 379
Documents payable Non-adjust. Ch$ 14,102 0 0 0
Obligations with public Adjustable Ch$ 3,356,720 609 0 0
Adjustable Ch$ 0 0 0 0
Sundry creditors Dollars 1,060,574 1121 2,464 1093
Adjustable Ch$ 3,525 7 0 0
Argentine peso 21,370 0 0 0
Long-term creditors Adjustable Ch$ 0 0 0 0
Long-Term provisions Dollars 2,098,052 0 0 0
Adjustable Ch$ 3,965,228 0 0 0
Deferred taxes Non-adjust. Ch$ 4,333,761 0 0 0
Documents payable Dollars 113,392 0 0 0
Total long-term liabilities
- Dollars 6,073,685 - 36,849,269 -
- Argentine peso 69,939 - 12,228 -
- Adjustable Ch$ 11,443,318 - 629,910 -
- Non-adjust. Ch$ 4,347,863 - 0 -
ITEM Currency 5-10 Years More than 10 years
----------------------------- ---------------- ----------------------------- ----------------------------
Amount Average Amount Average
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
------------- ------------- ------------ -------------
Obligations with banks Dollars 0 0 0 0
and financial institutions Argentine peso 0 0 0 0
Adjustable Ch$ 0 0 0 0
Documents payable Non-adjust. Ch$ 0 0 0 0
Obligations with public Adjustable Ch$ 33,567,200 475 16,783,600 605
Adjustable Ch$ 0 0 35,245,560 58
Sundry creditors Dollars 0 0 0 0
Adjustable Ch$ 0 0 0 0
Argentine peso 0 0 0 0
Long-term creditors Adjustable Ch$ 0 0 0 0
Long-Term provisions Dollars 0 0 0 0
Adjustable Ch$ 0 0 0 0
Deferred taxes Non-adjust. Ch$ 0 0 0 0
Documents payable Dollars 0 0 0 0
Total long-term liabilities
- Dollars 0 - 0 -
- Argentine peso 0 - 0
- Adjustable Ch$ 33,567,200 - 52,029,160 -
- Non-adjust. Ch$ 0 - 0 -
38. Penalties
The SVS and other administrative authorities have not imposed any penalties
during the 2004 and 2003 fiscal years.
39. Subsequent Events
On April 28, 2004, the parent company paid dividend N(degree) 157 of Ch$ 25.2
per share over 64,000,000 shares (Th Ch$ 1,612,800).
Between the closing date of the financial statements and the date of this
report there were no more subsequent events that could significantly affect
the Company's economic and financial situation.
40. COMPANIES UNDER SPECIAL NORM
The Company is not subject to special norms.
41. ENVIRONMENT
ENVIRONMENT
The company is permanently committed with environment preservation, during the
fiscal year 2003 invested Th Ch$ 205,409 corresponding to the purchase of
processing equipment for nitrous oxide (NOX) installed in the new furnace B.
The subsidiary S.A. Vina Santa Rita has invested Th Ch$ 13,542 in the January
- March 2004 (Th Ch$ 4,561 in 2003) period to comply with the ordinances and
laws related to Industrial Process and Installations.
42. STOCK TRANSACTIONS
During 2004 members of the board, controlling stockholders, related
individuals and entities did not carry out stock transactions.
43. DISTRIBUTION OF SHAREHOLDERS
The distribution of stockholders as of March 31, 2004 and 2003 is the
following:
% of Shareholding No. of Shareholders
----------------- --------------------
TYPE OF SHAREHOLDER 2004 2003 2004 2003
------------------------------ ------ ------ ----- -----
10% or more shareholding 34.03 34.03 1 1
Less than 10% shareholding
with investment equal to or
higher than 200 UF 65.84 65.83 265 270
Less than 10% shareholding
with investment lower than
200 UF 0.13 0.14 762 787
TOTAL 100.00 100.00 1,028 1,058
CONTROLLER OF
THE COMPANY 52.14 52.14 3 3
44. REMUNERATIONS OF THE BOARD OF DIRECTORS
As of March 31, 2004 and 2003 the parent company and the subsidiary S.A. Vina
Santa Rita paid and provisioned for diverse concepts the sum of Th Ch$ 464,570
and Th Ch$ 1,086,756 as follows:
2004 2003
Th Ch$ Th Ch$
--------- ---------
Share of previous fiscal year profits 334,256 890,581
Provision fiscal year 130,314 196,057
Fees paid 0 118
--------- ---------
TOTAL 464,570 1,086,756
========= =========
45. TIME DEPOSITS
As of March 31, 2004 and 2003 the company presents the following information:
INSTITUTION CURRENCY 2004 2003
Th$ Th$
------------------------------ -------- --------- ---------
Banco de Santander Santiago US$ 0 73,355
Banco Scotiabank US$ 0 0
Banco J.P. Morgan Chase Bank US$ 0 341,299
Banco Deutsche Bank Chile S.A. US$ 2,064,301
Banco Santander US$ 1,178,299 2,483,315
Banco Chile US$ 2,235,933 2,606,863
Banco Santander $ 3,452,208 924,992
Banco de Chile $ 344,351 3,001,203
Banco Scotiabank $ 0 5,009,100
HSBC Bank Chile $ 0 2,910,728
--------- ----------
TOTAL 7,210,791 19,415,156
========= ==========
RELEVANT EVENTS
None.
CRISTALERIAS DE CHILE S.A.
RATIO ANALYSIS TO CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 30, 2004
1.- CONSOLIDATED FINANCIAL INDICATORS
03-31-2004 03-31-2003 12-31-2003
---------- ---------- ----------
LIQUIDITY
Current liquidity times 4.2 3.9 4.4
Acid ratio times 3.1 3.0 3.4
DEBT
Debt ratio times 0.8 0.8 0.8
Short-term debt % 23.6 24.9 21.6
Long-term debt % 76.4 75.1 78.4
Coverage of interest expenses times 3.1 4.4 2.0
ACTIVITY
Total assets MM Ch$ 442,971 467,783 435,756
Investments MM Ch$ 3,193 6,455 27,446
Disposal of property MM Ch$ 8 176 367
Inventory turnover Times n.a. n.a. n.a.
Inventory permanence Days n.a. n.a. n.a.
RESULTS
Operating income MM Ch$ 33,606 35,372 169,091
Operating costs MM Ch$ 22,385 22,553 105,157
Operating results MM Ch$ 5,325 7,435 37,454
Financial expenses MM Ch$ 1,641 1,713 6,795
Non-operating results MM Ch$ (1,317) (1,052) (27,887)
R.A.I.I.D.A.I.E. MM Ch$ 9,046 11,205 29,009
After-tax profit MM Ch$ 2,567 4,321 6,694
RATE OF RETURN
Return on equity % 1.1 1.8 2.8
Return on assets % 0.6 0.9 1.5
Return on operating assets % 2.3 3.4 16.3
Profit per share $ 40.10 67.5 99.91
Return on dividends % 2.6 2.6 2.4
Current liquidity Ratio of current assets to current
liabilities.
Acid ratio: Ratio of uncommitted funds to current
liabilities.
Debt ratio: Ratio of total current liabilities to net
worth.
Coverage of Interest Expenses: Result before taxes and interest divided by
financial expenses.
Inventory turnover: Ratio between sales cost of the period and
average inventory.
Inventory permanence: Ratio between average inventory and sales
cost of the period, multiplied by 360
days.
R.A.I.I.D.A.I.E.: Result before taxes, interest, depreciation,
amortization, and special items.
Return on dividends: Sum of dividends paid in the last twelve
months divided by market price of stock
at closing of period.
The main trends observed in the 2004 fiscal year indicators are:
LIQUIDITY INDICES
A stability in the liquidity index is observed, having the acid ratio
decreased slightly as a consequence of the increase of the inventory and taxes
to recover.
INDEBTEDNESS INDICES
Indebtedness ratio is stable in respect to the previous fiscal year.
The interest expenses coverage index has registered slight decrease with
respect to the previous year due to lower income during the present fiscal
year.
PROFITABILITY INDICES
A decrease in the profitability indices of equity and assets is observed with
respect to the same period in 2003, due to lower income during the present
fiscal year.
Likewise, a decrease in the profitability of operating assets is observed due
to lower operating income.
On the other hand, in spite of higher dividends distributed during the last 12
months, the return on dividends indexes shows stable with respect to the
previous year due to an increase in the price of the company's shares in the
stock exchange, which passed from Ch$ 4,620 each as of March 31, 2003 to Ch$
5,000 as of March 31, 2004.
2. DIFFERENCE BETWEEN BOOK VALUE AND MARKET VALUE OF MAIN ASSETS.
The financial statements as of March 31, 2004 have been prepared according to
generally accepted accounting principles and general and specific norms of the
Securities and Insurance Commission, which is the agency that regulates the
Company. The valuation of the assets includes adjustment for currency
devaluation, provisions, and technical revaluations. We believe the foregoing
is a reasonable way to value the company's permanent investments.
As of March 31, 2004 there were financial investments in stocks recorded in
the accounting according to their purchase price at Ch$ 4,134 million whose
market value on the same date was Ch$ 5,728 million.
3. RESULTS FOR THE PERIOD
3a. Consolidated Result
Cristalerias de Chile S.A. consolidates its results with Vina Santa Rita,
CIECSA, Cristalchile Comunicaciones S.A., Cristalchile Inversiones S.A.
and Apoger.
Cristalerias' consolidated sales reached Ch$ 33,606 million, compared to Ch$
35,372 in 2003. This lower consolidated sales level results fundamentally from
lower sales in the glass container business (11.8%) and Santa Rita (2.3%);
partially compensated by higher sales at CIECSA (12.6%). Consolidated
operating income reached Ch$ 5,325 million, compared to Ch$ 7.435 million in
2003, of which the glass container business contributed Ch$ 4,289 million (Ch$
5,850 million in 2003) and Santa Rita Ch$ 1,059 million (Ch$ 1,650 million in
2003). CIECSA, in turn, registered an operating loss of Ch$ 50 million (Ch$
116 million operating loss in 2003).
Company's net income was Ch$ 2,567 million, compared to Ch$ 4,321 million in
2003. This result is mainly due to lower operating result in the glass
container business and Vina Santa Rita, and a higher non-operting loss mainly
due to a higher net loss from subsidiaries.
During the present fiscal year, the Company registered a consolidated
non-operting loss of Ch$ 1,317 million, that compares to a Ch$ 1,052 million
loss in 2003. The aforementioned is mainly explained by a higher net loss from
subsidiaries that do not consolidate, that passed from Ch$ 1,101 million in
2003 to Ch$ 1,710 million in 2004, due to lower results at Metropolis
-Intercom and Envases CMF. The net loss from subsidiaries includes a Ch$ 1,040
million charge (Ch$ 1,034 million charge in 2003) corresponding to goodwill
amortization, which does not constitute cash flow.
The following analysis explains Cristalerias' result based on individual
financial statements, as well as those of its main subsidiaries.
3b. Individual Result
The Company had non-consolidated sales of Ch$ 15,387 million as of March 2004,
compared to Ch$ 17,448 millon in the previous year. Volumes sold decreased by
2.4% reaching 56,856 tons, mainly due to lower sales of bottles of
non-returnable beer and liquor, partially compensated by higher sales of
bottles for wine, and analcoholic one way formats.
Operating income reached of Ch$ 4,289 million in 2004 (Ch$ 5,850 million income
in 2003), due to lower volumes sold and an average price decrease of 9.6%,
mainly explained by a decrease in the exchange rate, which passed from US$
736.99 per dollar on average during first quarter of 2003 to US$ 587,29 per
dollar on average during the first quarter of 2004.
The non-operating result was a loss of Ch$ 1,239 million (Ch$ 499 million loss
in 2003). During 2004 a higher loss in Cristalchile Comunicaciones (owner of
50% of Metropolis-Intercom) and lower net income in Envases CMF was
registered. The former was partially compensated by higher net income from
Vina Santa Rita and Cristalchile Inversiones (owner of 40% of Rayen Cura) and
a lower loss at CIECSA.
3c. Results in Subsidiaries
During 2004, Santa Rita's net income amounted Ch$ 1,383 million, 14,7% higher
that in 2003. In the local market, prices increased by 8.2% in real terms and
volumes dropped by 3.4%. During the period, exports increased by 5.2% reaching
US$ 12.9 million (US$ 11.0 million in 2003) and represented 52.2% of total
revenues. Operating income reached Ch$ 1,059 million, compared to Ch $ 1,650
million in 2003, mainly due to higher costs of musts and higher marketing
support expenses. The average price in dollars per case for the export market
for Santa Rita was US $34.9 (US$ 31.4 in 2003) whereas the average price
for the industry was US $24.4 per case (US$ 23.5 in 2003). Santa Rita recorded
a Ch$ 582 million non-operating profit, compared to a Ch $24 million
non-operating income in 2003, mainly due a profit from exchange differences
and sale of assets.
Red Televisiva Megavision, CIECSA's main subsidiary, registered a Ch$ 65
million operating loss, compared with an operating loss of Ch$ 90 million in
2003. MEGA reached the first place audience share with an average viewership
share of 25.3% during the period (22.9% in 2003)1. Net sales increased by
11.7% reaching Ch$ 4,837 million, as a higher audience share has resulted in
higher sales. MEGA had a net loss of Ch$ 238 million (Ch$ 248 million loss in
2003). CIECSA had a Ch$ 300 million net loss, compared to a Ch$ 445 million
net loss the previous year.
Envases CMF S.A. registered a Ch$ 372 million net income in 2004 compared with
a Ch$ 546 million net income in 2003. Net sales reached Ch$ 7,839 million
during the period (Ch$ 8,857 million in 2003). Sales volume dropped by 3.9%,
reaching 5,844 tons, due to a decrease of pre forms exports and lower sales of
one way formats; while average prices decreased by 7.9% influenced by a
decrease of the exchange rate. Due to the aforementioned, operating income
reached Ch$ 740 million, compared to Ch$ 1,174 million in 2003.
In the cable TV business, Cristalchile Comunicaciones S.A. (99.99% owned by
Cristalerias), is the owner of 50% of Cordillera Comunicaciones Ltda., which
in turn is the owner of Metropolis-Intercom S.A.
During 2004, Metropolis-Intercom S.A. registered sales of Ch$ 10,782 million,
practically equal to the previous year. Metropolis-Intercom had a net loss of
Ch$ 3,103 million compared with a net loss of Ch$ 1,973 million in 2003. The
lower result is due to a $775 million one-time expense that affected the
company's non-operating result. EBITDA reached Ch$ 1,641 million in the period
($1,614 million in 2003). This result includes a depreciation charge of Ch$
3,587 million (Ch $3,204 million in 2003) mainly corresponding to the HFC
network adquired in July 2000. The company ended the period with 223,957
subscribers of the basic service (240,119 in 2003), 35,514 premium subscribers
(5.2% over 2003), 36,883 subscribers of bradband internet services (42.3% over
2003) and 6,376 subscribers of IP telephony.
As a result of the abovementioned and the negative goodwill amortization
charge through Cordillera Comunicaciones of Ch$ 1,040 million in the period
(Ch $1,034 million in 2003), Cristalchile Comunicaciones recorded a net loss of
Ch$ 2,151 million (net loss of Ch$ 1,505 in 2003).
4. CASH FLOW STATEMENT
As of March 2004 a total net positive flow of Ch$ 9,499 million was generated,
which is explained by a positive flow generated by operating activities of Ch$
14,862 million which were partially offset by a negative financing flow of Ch$
1,580 million, and a negative flow of investment activities of Ch$ 3,783
million.
The operating flow corresponds basically to the collection of sales and
financial interests and other income received that were reduced in part by
payment to suppliers, taxes and interests.
The negative financing flow can be explained mainly by dividends paid of Ch$
948 million and payment of obligations with the public and loans for Ch$ 648
million.
-----------
1 Measured between 7:30AM and 1:30AM; i.e: 18 hours daily, Monday
through Sunday.
The negative investment flow is mainly explained by the incorporation of fixed
assets of Ch$ 3,588 million and investment payments for Th Ch$ 230.
The foregoing results in an increase in the final balance of cash and cash
equivalent, which passed from Ch$ 72,292 million as of December 31, 2003 to
Ch$ 82,562 million as of March 31, 2004.
According to the current regulations of the SVS and the Association of
Accountants of Chile, term deposits and agreements with due date less than 90
days have been considered cash and cash equivalent.
5. RISKS ANALYSIS
a. Interest rates
Cristalerias and its Subsidiaries are exposed to the risk of fluctuations in
interest rates on its short-term and long-term debts. As of March 31, 2004
Short-Term and Long-Term bank liabilities and obligations with the public
totaled Ch$ 128,230 million, which represents 29% of the Company's
consolidated assets.
On the other hand, bank credits totaled Ch$ 37,956 million of which Ch $32,930
million correspond to credits in foreign currency agreed at variable rates
related to the six-month Libor plus 0.8% percentage points annually, Ch$ 4,219
million correspond to credits in pesos adjustable in unidades de fomento
(indexed currency units) that are exposed to changes in the 90 and 180 days
TAB rate, and Ch$ 807 million correspond to credits in pesos at an annual rate
of 4.94%.
Of obligations with the public for Ch$ 90,274, Ch$ 70,089 million correspond
to bonds issued by Cristalchile and Ch$ 20,185 millon to bonds issued by the
subsidiary Vina Santa Rita, both a fixed interest rate.
As of December 31, 2003, the Company had funds available of Ch$ 72,096 million
invested in instruments at different terms like term deposits, bonds,
fixed-rate mutual funds and resale agreements. Such amount doest not include
bonds for Ch $9,068 million with maturity on September 15, 2005 and share
investments for Ch $4,134 million.
The company and its subsidiaries do not use secondary financial instruments at
the present to reduce risk in the event of fluctuations in interest rates.
That policy will be studied permanently to evaluate the alternatives offered
by the market.
b) Exchange rate
The Company and its Subsidiaries maintain liabilities in foreign currency of
US$ 68.9 million, which represent 10.3% of its consolidated assets, and
include a long-term syndicated loan of US$ 50 million in the parent company
and Long-Term bank credits in Vina Santa Rita of US$ 3.1 million.
As of March 31 the Company and its Subsidiaries maintain its investments in
Dollars of US$ 86.1 million; in time deposits, bonds and fixed rate mutual
funds. In addition it also has (euro) 24.9 million in fixed rate instruments.
Likewise, it has dollar purchase future contracts of US$ 42.6 million that are
compensated by sale future contracts for US $39.6 million.
On the other hand, approximately 38.2% of consolidated income of the company is
adjusted to the exchange rate variation. At the same time, consolidated costs
in foreign currency represent approximately 28.4% of total costs.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GLASSWORKS OF CHILE
(Registrant)
By: /s/ Benito Bustamante C.
-----------------------------------
Benito Bustamante C.
Controller
Date: October 6, 2004