SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
October 8, 2002
Glassworks of Chile
-----------------------------------------------
(Translation of registrant's name into English)
Hendaya N(0)60
----------------------------------
Las Condes
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Santiago, Chile
----------------------------------
(Address of principal executive offices)
Form 20-F | | Form 40-F [ ]
--- ---
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|
--- ---
CRISTALERIAS DE CHILE S.A.
Material event
Standarized Quarterly Financial Report
CONTENTS
Standarized Quarterly Financial Report for the period ended June 30, 2002.
NOTES
a) On August 29, 2002, Cristalerias de Chile S.A. filed with the
Superintendencia de Valores y Seguros de Chile (the Chilean
Superintendency of Stock Corporation and Insurance Companies) its
Standarized Quarterly Financial Report (FECU) for the period ended June
30th, 2002.
b) This report is a free translation from the original in Spanish.
Cristalerias de Chile S.A. (THE "COMPANY")
REPORT ON FORM 6-K
TABLE OF CONTENTS
(1) Quarterly consolidated financial statements of the Company for the quarter
ended June 30, 2002.
(2) Quarterly individual financial statements of the Company for the quarter
ended June 30, 2002.
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 1/1/2002
1.00.01.20 Closing date 6/30/2002
1.00.01.30 Type of Currency Chilean Pesos
1.00.01.40 Type of Financial Statements Consolidated
2
ASSETS
2.0 FINANCIAL STATEMENTS
2.01 BALANCE SHEET
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance : Consolidated
ASSETS NOTE No. 06-30-02 06-30-01
------ -------- -------- --------
5.11.00.00 TOTAL CURRENT ASSETS 132,038,229 121,454,079
5.11.10.10 Cash 1,434,929 2,463,718
5.11.10.20 Time deposits 40 21,391,791 34,859,003
5.11.10.30 Marketable securities (net) 4 10,379,791 3,468,043
5.11.10.40 Debtors from sales (net) 5 32,577,842 27,921,705
5.11.10.50 Documents receivable (net) 5 5,945,587 4,264,810
5.11.10.60 Sundry debtors (net) 5 1,133,399 724,660
5.11.10.70 Doc. & accts receivable 6 396,805 377,915
related Co.
5.11.10.80 Inventories (net) 7 40,003,256 34,465,980
5.11.10.90 Recoverable taxes 8 295,823 983,139
5.11.20.10 Prepaid expenses 1,155,375 802,399
5.11.20.20 Deferred taxes 8 1,424,589 1,009,189
5.11.20.30 Other current assets 10 15,899,042 10,113,518
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 12 130,893,468 131,374,398
5.12.10.00 Land 12 13,011,919 12,703,245
5.12.20.00 High rises & infrastructure 12 52,951,737 50,609,129
5.12.30.00 Machinery & equipment 12 128,890,093 121,185,916
5.12.40.00 Other fixed assets 12 14,833,604 13,951,158
5.12.50.00 Positive goodwill from 12 8,336,157 8,342,060
technical revaluation of fixed
assets
5.12.60.00 Depreciation (minus) 12 (87,130,042) (75,417,110)
5.13.00.00 TOTAL OTHER ASSETS 141,877,741 137,620,872
5.13.10.10 Investment in related companies 14 109,353,612 111,243,039
5.13.10.20 Investment in other companies 15 1,445,645 1,574,612
5.13.10.30 Negative goodwill 16 8,875,922 10,302,694
5.13.10.40 Positive goodwill (minus) 0 0
5.13.10.50 Long-term debtors 5 206,275 144,390
5.13.10.60 Doc. & accts receivable 6 1,362 0
related Co.
5.13.10.65 Long-term deferred taxes 8 0 0
5.13.10.70 Intangibles 17 11,323,184 11,242,384
5.13.10.80 Amortization (minus) 17 (884,173) (741,400)
5.13.10.90 Other 18 11,555,914 3,855,153
5.13.20.10 Long-term leasing contracts 0 0
(net)
5.10.00.00 TOTAL ASSETS 404,809,438 390,449,349
LIABILITIES
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance : Consolidated
LIABILITIES NOTE No. 06-30-02 06-30-01
----------- -------- -------- --------
5.21.00.00 TOTAL CURRENT LIABILITIES 65,838,592 46,718,706
5.21.10.10 Short-term oblig. Banks & 19 1,005,762 2,135,489
Fin. Inst.
5.21.10.20 Short-term portion - Long-term 19 24,261,194 8,886,065
oblig. Banks & Financial
Institutions
5.21.10.30 Obligations with the public 0 0
(notes)
5.21.20.40 Short-term portion oblig with 22 460,599 462,604
public
5.21.10.50 Long-term oblig. due within 1 201,701 201,194
year
5.21.10.60 Dividends payable 536,729 942,521
5.21.10.70 Accounts payable 15,394,692 11,807,442
5.21.10.80 Notes payable 3,040,323 5,488,928
5.21.10.90 Sundry creditors 500,281 403,632
5.21.20.10 Notes & accts payable related 6 1,925,800 928,314
Co.
5.21.20.20 Provisions 23 14,068,416 10,194,923
5.21.20.30 Withholdings 1,728,283 1,809,798
5.21.20.40 Income tax 0 0
5.21.20.50 Earned income 2,325,044 3,457,796
5.21.20.60 Deferred taxes 8 0 0
5.21.20.70 Other current liabilities 20 389,768 0
5.22.00.00 TOTAL LONG-TERM LIABILITIES 89,226,107 102,411,960
5.22.10.00 Oblig with Banks & Financial 21 58,517,703 71,905,665
Inst.
5.22.20.00 Long-term oblig with public 22 19,626,240 20,014,502
(bonds)
5.22.30.00 Long-term notes payable 45,968 25,969
5.22.40.00 Long-term sundry debtors 1,303,617 2,122,183
5.22.50.00 Long-term notes & accts. 6 0 0
payable related companies
5.22.60.00 Long-term provisions 23 7,140,084 7,621,181
5.22.70.00 Long-term deferred taxes 8 2,592,495 722,460
5.22.80.00 Other long-term liabilities 0 0
5.23.00.00 MINORITY INTEREST 25 35,572,764 32,546,531
5.24.00.00 TOTAL EQUITY 214,171,975 208,772,152
5. 24.10.00 Paid-in capital 27 62,863,356 62,253,624
5. 24.20.00 Reserve capital revaluation 27 377,180 933,806
5. 24.30.00 Premium in sale of own shares 27 26,955,324 26,932,687
5. 24.40.00 Other reserves 27 9,133,407 7,670,451
5. 24.50.00 Retained earnings (addition 114,842,708 110,981,584
of codes
5.24.51.00 to 5.24.56.00)
5.24.51.00 Reserve future 27 112,231,045 103,307,766
dividends
5.24.52.00 Accrued profits 27 0 0
5.24.53.00 Accrued losses 27 0 0
(minus)
5.24.54.00 Profit (loss) 27 3,571,663 9,144,215
for the year
5.24.55.00 Prov. dividends 27 (960,000) (1,377,713)
(minus)
5.24.56.00 Accr. deficit dev. 27 0 (92,684)
period
5.20.00.00 TOTAL LIABILITIES 404,809,438 390,449,349
4
INCOME STATEMENT
2.02 INCOME STATEMENT
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance : Consolidated
INCOME STATEMENT NOTE No. 06-30-02 06-30-01
---------------- -------- -------- --------
5.31.11.00 OPERATING RESULTS 16,454,034 12,652,508
5.31.11.10 Operating Margin 27,520,614 23,166,419
5.31.11.11 Operating income 68,791,643 65,362,179
5.31.11.12 Operating costs (minus) (41,271,029) (42,195,760)
5.31.11.20 Adm. & sales expenses (minus) (11,066,580) (10,513,911)
5.31.12.00 NON-OPERATING RESULTS (8,135,030) (1,881,589)
5.31.12.10 Interest income 1,165,203 1,510,003
5.31.12.20 Profit investments related Co. 14 70,440 441,622
5.31.12.30 Other non-operating income 28 518,510 5,410,810
5.31.12.40 Profit investments rel- Co. (-) 14 (7,525,692) (4,676,635)
5.31.12.50 Amortization neg.goodwill (-) 15 (288,529) (467,317)
5.31.12.60 Interest expenses (minus) (2,411,603) (3,729,350)
5.31.12.70 Other non-operat expenses (-) 28 (1,638,641) (917,085)
5.31.12.80 Price level restatement 29 (923,251) 200,519
5.31.12.90 Exchange differences 30 2,898,533 345,844
5.31.10.00 RESULTS BEFORE INCOME TAX 8,319,004 10,770,919
AND EXTRAORDINARY ITEMS
5.31.20.00 INCOME TAX 8 (2,726,329) (2,467,536)
5.31.30.00 EXTRAORDINARY ITEMS 30 0 1,822,561
5.31.40.00 PROFIT (LOSS) BEFORE 5,592,675 10,125,944
MINORITY INTEREST
5.31.50.00 MINORITY INTEREST 26 (2,021,012) (981,729)
5.31.00.00 NET PROFIT (LOSS) 3,571,663 9,144,215
5.32.00.00 Amortization of positive goodwill 0 0
5.30.00.00 PROFIT (LOSS) FOR THE YEAR 3,571,663 9,144,215
5
DIRECT CASH FLOW STATEMENT
2.03 CASH FLOW STATEMENT
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance : Consolidated
DIRECT CASH FLOW STATEMENT NOTE No. 06-30-02 06-30-01
-------------------------- -------- -------- --------
5.41.11.00 NET FLOW FROM OP. ACT. 18,491,788 18,429,489
5.41.11.10 Collection from sales debtors 82,905,853 106,749,031
5.31.11.20 Interests received 2,215,418 2,284,706
5.31.11.30 Dividends & other distributions 129,028 213,184
funds received
5.31.11.40 Other income 33 1,667,284 254,211
5.31.11.50 Payments to suppliers & (57,672,833) (81,968,571)
personnel (-)
5.31.11.60 Interest paid (minus) (1,637,453) (3,404,585)
5.31.11.70 Income tax paid (minus) (1,131,861) (2,643,963)
5.31.11.80 Other expenses 33 (1,839,016) (1,032,716)
5.31.11.90 V.A.T. & other taxes (6,144,632) (2,021,808)
5.41.12.00 CASH FLOW FINANCING ACTIVITIES (9,097,044) 10,324,314
5.41.12.05 Proceeds from share issue 0 31,608
5.41.12.10 Loans received 0 4,577,151
5.41.12.15 Obligations with the public 0 18,347,906
5.41.12.20 Secured loans from related 1,624,184 46,502
companies
5.41.12.25 Other loans from related 0 0
companies
5.41.12.30 Other financing resources 0 0
5.41.12.35 Dividends paid (minus) (7,076,866) (6,632,921)
5.41.12.40 Capital distributions (minus) 0 0
5.41.12.45 Repayment of loans (minus) (2,131,411) (5,105,953)
5.41.12.50 Payment of obligations with the (204,139) (839,966)
public (-)
5.41.12.55 Repayment of secured loans from (1,308,331) (45,585)
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 (481) (54,428)
5.41.13.00 CASH FLOW FROM INVESTING ACTIVITIES (2,136,705) (36,098,004)
5.41.13.05 Sale of fixed assets 34,981 691,050
5.41.13.10 Sale of permanent investments 0 0
5.41.13.15 Sale of other investments 33 10,748,618 9,821,293
5.41.13.20 Proceeds secured loans to 0 1,370,154
related Comp.
5.41.13.25 Proceeds other loans to related 6,887 42,208
companies
5.41.13.30 Other investment income 33 2,044,677 524,544
5.41.13.35 Incorporation of fixed assets (8,962,712) (26,458,308)
(minus)
5.41.13.40 Capitalized interests payment 0 0
(minus)
5.41.13.45 Permanent Investments (minus) (3,767,843) (628,827)
5.41.13.50 Investments in financial (1,538,111) (21,145,514)
instruments (minus)
5.41.13.55 Other loans to related companies 0 0
(minus)
5.41.13.60 Other loans to related companies (2,672) (274,276)
(minus)
5.41.13.65 Other distrib of funds on invest 33 (700,530) (40,328)
activities (-)
5.41.00.00 TOTAL NET CASH FLOW FOR THE PERIOD 7,258,039 (7,344,201)
5.42.20.00 EFFECT OF INFLATION ON CASH & CASH EQUIV. 124,688 (248,407)
5.41.00.00 NET CHANGE IN & CASH EQUIVALENT 7,382,727 (7,592,608)
5.42.00.00 CASH & CASH EQUI AT BEGINNING OF PERIOD 38,002,164 28,545,949
5.43.00.00 CASH & CASH EQUIV BALANCE AT END OF PERIOD 45,384,891 20,953,341
6
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: Chilean pesos
1.00.01.40 Type of Balance : Consolidated
CASH FLOW - INCOME STATEMENT RECONCILIATION NOTE No. 06-30-02 06-30-01
------------------------------------------- -------- -------- --------
5.50.10.00 Profit (Loss) for the year 3,571,663 9,144,215
5.50.20.00 Profit (Loss) in sale of assets 5,624 (1,983,050)
5.50.20.10 (Profit) Loss in sale of fixed assets 5,624 18,662
5.50.20.20 Profit in sale of investments (minus) 0 (2,001,712)
5.50.20.30 Loss in sale of investments 0
5.50.20.40 (Profit) Loss in sale of other assets 0
5.50.30.00 Non-cash losses (gains) 15,334,820 10,585,615
5.50.30.05 Depreciation for the year 12 6,543,737 5,624,998
5.50.30.10 Amortization of intangibles 771,643 158,777
5.50.30.15 Write-offs and provisions 2,978,895 1,367,325
5.50.30.20 Accrued earnings from investments in related 14 (70,440) (441,622)
companies (minus)
5.50.30.25 Accured losses from investments in related Co. 14 7,525,692 4,676,635
5.50.30.30 Negative goodwill amortization 16 288,529 467,317
5.50.30.35 Positive goodwill amortization (minus) 0 0
5.50.30.40 Price level restatement 29 923,251 (200,519)
5.50.30.45 Net exchange difference 30 (2,898,533) (345,844)
5.50.30.50 Other non-cash credits to results (minus) (762,374) (2,512,562)
5.50.30.55 Other non-cash debits to results 34,420 1,791,110
5.50.40.00 Changes in Assets affecting cash flow (incr) decreases (23,882,959) (6,304,277)
5.50.40.10 Debtors from sales (12,578,043) 2,977,911
5.50.40.20 Inventory (10,575,071) (5,233,445)
5.50.40.30 Other assets (729,845) (4,048,743)
5.50.50.00 Changes in liabilities affecting cash flow increases 21,441,628 6,005,258
(decr)
5.50.50.10 Accounts payable related to results for the 21,504,036 5,310,152
year
5.50.50.20 Interests payable 548,181 (964,765)
5.50.50.30 Income tax payable (net) 1,563,693 27,047
5.50.50.40 Other accounts payable related to non-oper (1,386,536) 1,389,880)
results
5.50.50.50 VAT and other taxes payable (net) (787,746) 242,944
5.50.60.00 Profit (Loss) of minority interest 26 2,021,012 981,728
5.50.00.00 NET OPERATING CASH FLOW 18,491,788 18,429,489
7
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).
8
02. APPLIED ACCOUNTING CRITERIA
APPLIED ACCOUNTING CRITERIA
a) Accounting Period
These financial statements correspond to the period between January 1 and June
30 of 2002 and 2001.
b) Preparation basis of financial statements:
These consolidated financial statements as of June 30, 2002 and 2001 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 2001 fiscal year are presented updated according to
non-accounting terms as of June 30, 2002 by 2.1%.
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.
Since the third quarter of 2001, the results of Envases CMF S.A. were not
consolidated due to the reduction of Cristalchile's stake in this company from
99.99% to 50%, as expressed in note 13
The consolidated results of CIESCA includes the balances of its subsidiary Red
Televisiva Megavision S.A. in which it has a 78.01% stake and Simetral S.A.
in which it has a 81.5% stake as of the third quarter of 2001. The company
did not consolidate with Ediciones Chiloe S.A. because of the reduction in
its share of the company from 75% to 50%.
The consolidated results of S.A. Vina Santa Rita includes the balances of its
subsidiaries Vina Carmen S.A., in which it has a 99.9% stake in 2002 and 2000,
Vina Dona Paula S.A., in which it has a 100% stake in 2002 (in 2001 it was not
included in the consolidation), and Sur Andino S.A., in which it has a 100%
stake in 2002 (it was created on June 30, 2001).
Constructora Apoger S.A.'s 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 2002 fiscal
year, which was 0.6% (1.5% in 2000).
9
f) Conversion Basis
Balances in foreign currency and indexed currency units have been converted to
pesos at the indicated parities:
2002 2001
Ch$ Ch$
--- ---
U.S. Dollar 688,05 629,00
Canadian Dollar 454,01 415,73
Pound Sterling 1052,71 888,92
Danish Crown 91,83 71,74
Swedish Crown 75,14 57,93
EURO 681,91 534,23
Unidad de Fomento 16,355.20 16,002.32
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
June 30, 2002.
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 June 30, 2002 and 2001 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 June 30, 2002 and 2001.
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.
10
m) Sales Transactions with Leaseback
None.
n) Intangibles
The corrected purchase value of trademarks as well as TV channel 9 frequency
are presented as intangibles. Its amortization period is 40 years. In addition
the subsidiary S.A. Vina Santa Rita includes the costs for trademark
registration, which are amortized in a period of their renewal.
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 value 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 June 30, 2002 and 2001 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 (Operating Income)
The consolidated companies recognize operating income on an accrued basis
according to generally accepted accounting principles.
v) Derivative Contracts
The parent company and its subsidiaries Ciecsa S.A. and S.A. Vina Santa Rita
maintain futures contracts in foreign currency recorded as established in
Technical Bulletin 57 of the Accountants Association of Chile.
11
w) Computer Software
The parent company and S.A. Santa Rita develop computer software with their
own resources and they also acquires 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 do not show any expenses in this item.
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."
12
CRISTALERIAS DE CHILE S.A.
NOTE 2 - ACCOUNTING CRITERIA USED - COMPANIES INCLUDED IN THE CONSOLIDATED
REPORT
Percentage of Shareholding
--------------------------
R.U.T. Company Name 06.30.2002 06.30.2001
------ ------------ ---------- ----------
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. 98.2100 0.0000 98.2100 98.0700
86.547.900-K S.A. Vina Santa Rita 54.1000 0.0000 54.1000 54.1000
96.972.440-5 Cristalchile Inversiones S.A. 99.9900 0.0100 100.0000 0.0000
13
03. ACCOUNTING CHANGES
As of June 30, 2002 and 2001, there have not been any changes in the accounting
criteria applied that affect the consolidated financial statements.
14
04. MARKETABLE SECURITIES
As of June 30 2002, investments in stocks in the amount of Th Ch$ 3,644,054
investments in fixed rate mutual funds in the amount of Th US$ 6,521,246 ,
investments in mutual funds in the amount of Th Ch$ 23,753 and Th US$ 190,738
for interests accrued in long-term bonds.
As of June 30, 2001, the investment in Central Bank PRC in the amount of Th
Ch$153,810, Th Ch$3,275,641 in stocks and Th Ch$38.592 in mutual funds are
included in this item.
CRISTALERIAS DE CHILE S.A.
NOTE 4 -MARKETABLE SECURITIES- BALANCE COMPOSITION
Type of Security Book Value
---------------- ----------
06-30-2002 06-30-2001
---------- ----------
Shares 3,644,054 3,275,641
Bonds 190,738 0
Shares in mutual funds 6,544,999 38,592
Shares in investment funds 0 0
Public tender notes 0 153,810
Mortgage bonds 0 0
Total Marketable Securities 10,379,791 3,468,043
15
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - SHARES
Unit Market
Number of Participation Market Investment Corrected
R.U.T. Company Name Shares Percentage Value Value Cost
------ ------------ ------ ---------- ----- ----- ----
96.512.200-1 Bodegas y Vinedos Santa Emiliana S.A 59,627,851 9.3690 101 6,022,413 3,644,054
Value Investment Portfolio 6,022,413 3,644,054
Adjustment Provision 0
Book value, Investment Portfolio 3,644,054
16
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - FIXED INTEREST INSTRUMENTS
Capital Placed Interests Accrued Current Placement
Date Annual -------------- ----------------- -----------------
Institution Starting Maturity Rate US$ M$ US$ M$ US$ M$
----------- -------- -------- ------ --- -- --- -- --- --
JP MORGAN AL 01.01.2002 07.30.2002 1.70 9,458,036 6,507,602 19,830 13,644 9,477,866 6,521,246
Total 6,521,246
17
05. SHORT-TERM AND LONG-TERM DEBTORS
As of June 30, 2002 and 2001, there are balances short-term debtors in the
amount of Th Ch$32,577,842 (Th Ch$27,921,705 in 2001).
The bad debt reserve of Th Ch$735,271 in 2002 (Th Ch$389,839 in 2001) 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 Ch$206,275 in Long Term Debtors in 2002 (Th
144,390 in 2001).
18
CRISTALERIAS DE CHILE S.A.
NOTE 5 -SHORT AND LONG TERM DEBTORS
Current Assets
--------------
Over 90 days
Item Up to 90 days up to 1 year Subtotal Total Current (net)
---- ------------- ------------ -------- -------------------
06-30-2002 06-30-2001 06-30-2002 06-30-2001 06-30-2002 06-30-2001
---------- ---------- ---------- ---------- ---------- ----------
Debts from Sales 31,733,348 24,636,660 1,383,407 3,285,045 33,116,755 32,577,842 27,921,705
Estimate of bad debtors - - - - 538,913 0 0
Documents receivable 5,632,183 4,225,877 509,762 38,933 6,141,945 5,945,587 4,264,810
Estimate of bad debtors - - - - 196,358 0 0
Misc. Debtors 1,127,902 684,944 5,497 39,716 1,133,399 1,133,399 724,660
Estimate of bad debtors - - - - - 0 0
Total Long Term Debtors
==============================================================================
Item Long Term
---- ---------
06-30-2002 06-30-2001
---------- ----------
Debts from Sales 0
Estimate of bad debtors 0
Documents receivable 0
Estimate of bad debtors 0
Misc. Debtors 206,275 144,390
Estimate of bad debtors 0 0
206,275 144,390
19
06. BALANCES AND TRANSACTIONS WITH RELATED ENTITIES
Balances receivable in the Short-Term as of June 30, 2002 that total Th Ch$
396,805 (Th Ch$377,915 in 2001) correspond mainly to a loan granted by the
subsidiary Ciecsa to Editorial Zig Zag for Th Ch$264,798 including interests,
with maturity on 09-30-2002 at an annual interest rate of 6% and advertising
sold by Red Televisiva Megavision S.A. to Editorial Zig-Zag for Th Ch$3,933 and
to Metropolis Intercom for Th Ch$34,114 , the balance correspond for invoicing
receivable Th Ch$93,960.
Balances payable in the short term totaling Th Ch$1,925,800 in 2002 (Th
Ch$928,314 in 2001) correspond mainly to Th Ch$1,200,647 for transactions made
by Red Televisiva with Televisa Internacional S.A. de C.V., the balance
corresponds to commercial transactions under 90 days for Th Ch$224,239, and
dividends payable to Majority shareholder for Th Ch$ 500,914.
In 2002 there are a balance for invoicing Ch Th$1,362 an in 2001 there are no
Long-term Accounts Receivable recorded in 2002 and 2001.
20
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
------ ------- ---------- ---------
06-30-2002 06-30-2001 06-30-2002 06-30-2001
---------- ---------- ---------- ----------
90.684.000-6 Editorial Zig-Zag S.A. 268,731 306,345 0 0
89.150.900-6 Vina Los Vascos S.A. 81,091 28,037 0 0
90.320.000-6 Cia. Electro Metalurgica S.A. 221 197 0 0
0-E Rayen Cura SAIC 183 7,599 0 0
96.539.380-3 Ediciones Financieras S.A. 1,771 0 0 0
96.793.770-3 Ediciones Chiloe S.A.0 0 0 1,362 0
79.753.810-8 Claro y Cia. 274 266 0 0
96.787.775-1 Metropolis Intercom S.A. 43,768 22,928 0 0
0-E Televisa S.A. 0 7,376 0 0
83.032.100-4 Serv. Y Consultorias Hendaya S.A. 0 493 0 0
95.819.000-K Costanera S.A. 0 2,699 0 0
90.160.000-7 Sudamericana de Vapores S.A. 104 1,800 0 0
77.658.870-9 Marketing Meter Ltda. 662 0 0 0
86.881.400-4 Envases CMF S.A. 0 175 0 0
Total 396,805 377,915 1,362 0
21
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
------ ------- ---------- ---------
06-30-2002 06-30-2001 06-30-2002 06-30-2001
---------- ---------- ---------- ----------
78.619.370-2 Cordillera Comunicaciones Ltda. 0 196,951 0 0
89.150.900-6 Vina Los Vascos S.A. 3,389 0 0 0
79.753.810-8 Claro y Cia. 41,501 237 0 0
90.160.000-7 Cia. Sudamericana de Vapores S.A. 11,563 4,905 0 0
90.320.000-6 Cia. Electro Metalurgica S.A. 326,700 466,985 0 0
83.032.100-4 Serv. Y Consultorias Hendaya S.A. 85,826 121,772 0 0
86.881.400-4 Envases CMF S.A. 166,434 3,769 0 0
0-E Televisa Internacional S.A. De C.V. 1,200,647 0 0 0
83.628.100-4 Sonda S.A. 0 6,925 0 0
86.775.600-1 Inversiones Bayona S.A. 88,688 126,770 0 0
77.658.870-9 Marketing Meter Ltda. 1,052 0 0 0
Total 1,925,800 928,314 0 0
22
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 Hendaya S.A. 83.032.100-4 Majority shareholder Services received
- Products sold
- Dividends paid
- Services supplied
- Payment for own account
- Services rendered
Cia. Sud-Americana de Vapores S.A. 90.160.000-7 Indirect affiliate Advertising sold
- Products sold
- Freight services
- Advertising hired
- Subscription sales
Inversiones Pocuro Ltda.. 79.770.040-1 Indirect affiliate Subscription sales
Vina Los Vascos S.A. 89.150.900-6 Indirect affiliate Direct sales
- Materials purchased
Inversiones Bayona S.A. 86.755.600-1 Majority shareholder Dividends paid
Navarino S.A. 96.566.900-0 Indirect affiliate Services supplied
Indesa S.A. 92.892.000-3 Same Parent Subscription sales
Maritima de Inversiones S.A. 94.660.000-3 Indirect affiliate Advertising sold
Claro y Cia. 79.753.810-8 With the president Advice received
- Products sold
Quemchi S.A. 96.640.360-8 Indirect affiliate Services rendered
Loans granted
Loans repaid
Interests
CAP S.A. 91.297.000-0 Affiliate Advertising sold
Rayen Cura S.A.I.C. 0-E Indirect affiliate Direct sales
Forus S.A. 86.963.200-7 Affiliate Advertising hired
Services purchased
Televisa Internacional S.A.C.V 0-E Affiliate Purchase of exhibition material
Sonda S.A. 83.628.100-4 Shareholder in Subscription sales
affiliate
Services purchased
Advertising sold
Envases CMF S.A. 86.881.400-4 Indirect affiliate Materials purchased
Interests
Adjustments
06-30-2002 06-30-2001
---------- ----------
Effect on Effect on
Company Description of Transaction Amount Outcome Amount Outcome
------- -------------------------- ------ ------- ------ -------
Serv. Y Consultorias Hendaya S.A. Services received 629,530 -629,530 558,168 -558,168
Products sold 100 28 3,340 9
Dividends paid 545,786 0 525,182 0
Services supplied 9,660 9,660 10,896 10,267
Payment for own account 27,612 -27,612 27,724 -27,724
Services rendered 287 -287 41,825 -41,825
Cia. Sud-Americana de Vapores S.A. Advertising sold 0 0 459 459
Products sold 5,088 860 7,029 1,271
Freight services 30,102 -17,837 341,702 -21,218
Advertising hired 26,667 26,667 0 0
Subscription sales 0 0 737 737
Inversiones Pocuro Ltda.. Subscription sales 0 0 87 87
Vina Los Vascos S.A. Direct sales 234,654 58,026 111,990 30,686
Materials purchased 16,238 0 19,629 0
Inversiones Bayona S.A. Dividends paid 568,195 0 546,744 0
Navarino S.A. Services supplied 4,874 4,874 4,849 4,849
Indesa S.A. Subscription sales 0 0 210 210
Maritima de Inversiones S.A. Advertising sold 0 0 172 172
Claro y Cia. Advice received 105,395 -105,395 71,183 -71,183
Products sold 474 131 565 155
Quemchi S.A. Services rendered 4,874 4,874 4,849 4,849
Loans granted 0 0 51,050 0
Loans repaid 0 0 51,050 0
Interests 0 0 155 155
CAP S.A. Advertising sold 0 0 2,553 2,553
Rayen Cura S.A.I.C. Direct sales 183 0 22,085 7,119
Forus S.A. Advertising hired 78,536 78,536 0 0
Services purchased 2,036 -2,036 0 0
Televisa Internacional S.A.C.V Purchase of exhibition material 1,152,194 -1,152,194 0 0
Sonda S.A. Subscription sales 0 0 147 147
Services purchased 0 0 7,360 -7,360
Advertising sold 0 0 1,319 1,319
Envases CMF S.A. Materials purchased 161,707 0 3,194 0
Interests 0 0 40,951 40,951
Adjustments 0 0 19,851 19,851
23
Company R.U.T. Relationship
------- ------ ------------
Cia. Electro Metalurgica S.A. 90.320.000-6 Majority shareholder
Inmobiliaria Don Alberto S.A. 96.826.870-8 Indirect affiliate
Metropolis Intercom S.A. 96.787.750-6 Indirect affiliate
06-30-2002 06-30-2001
---------- ----------
Effect on Effect on
Company Description of Transaction Amount Outcome Amount Outcome
------- -------------------------- ------ ------- ------ -------
Products sold 95 26 68 18
Loans repaid 0 0 1,271,447 0
Finance Distributed 0 0 510,394 0
Cia. Electro Metalurgica S.A. Dividends paid 2,093,058 0 2,014,040 0
Advertising sold 0 0 2,538 -2,538
Products sold 496 71 1,257 301
Materials purchased 823 0 1,047 0
Inmobiliaria Don Alberto S.A. Adjustments 0 0 962 962
Return of Distributed 0 0 43,073 0
Profits distributed 0 0 12,525 0
Metropolis Intercom S.A. Advertising Services 11,581 -11,581 923 -923
Payment for own account 3,533 0 778 0
Advertising sold 0 0 84,288 94,288
Subscription sales 0 0 9,176 9,176
Products sold 4,933 1,347 6,594 -1,2816
Advertising hired 157,533 157,533 84,288 84,288
24
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)
2002 2001
Th Ch$ Th Ch$
------ ------
Finished Products
* Cristalerias de Chile S.A. 2,598,562 2,934,424
* S.A. Vina Santa Rita 5,044,758 4,689,642
Subtotal Finished Products 7,643,320 7,624,066
Raw Materials and Fuel
* Cristalerias de Chile S.A. 1,812,791 1,294,982
* S.A. Vina Santa Rita 24,873,922 19,215,231
Subtotal Raw Materials and Fuel 26,686,713 20,510,213
Supply Materials and Parts
* Cristalerias de Chile S.A. 1,048,374 1,201,989
* S.A. Vina Santa Rita 1,421,561 1,308,261
Subtotal Supply Materials and Parts 2,469,935 2,510,250
Materials in Transit 652,083 1,160,914
Red Televisiva Megavision S.A. (CIECSA S.A.)
* Foreign, taped, for broadcast 2,376,726 2,434,649
* Domestic programming, to be broadcast 174,479 225,888
2,551,205 2,660,537
Total 40,003,256 34,465,980
25
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 1.8
years for Short-Term Assets, 4.1 years for Long-Term Assets, and 14.4 years
for Long-term Liabilities.
B) INCOME TAX
The parent company and its subsidiary S.A. Vina Santa Rita, made tax
provisions of 16% of taxable income in 2002 (15% in 2001) subject to the First
Category and 35% for the Single Income Tax under Art. 21, for the 2002 and
2001 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:
2002 2001
Th Ch$ Th Ch$
------ ------
Fiscal year income tax reserve (2,252,670) (2,260,341)
Single tax reserve (4,729) (4,978)
--------- ----------
SUB TOTAL (2,257,399) (2,265,319)
Credits:
Deferred Fixed Assets 3,744 0
Monthly reserve payments 2,008,765 2,273,932
Training expenditures 28,858 37,034
Donations 939 14,864
--------- --------
CREDIT SUB TOTAL 2,042,306 2,325,830
Income Tax to be Recovered (215,093) 60,511
26
Other Taxes to be recovered:
VAT Fiscal Credit 275,279 743,743
Income tax credit, previous year 235,637 178,885
TOTAL TAXES TO BE --------- ---------
RECOVERED 295,823 983.139
C) TAXABLE PROFIT FUND
The parent company showed the following taxable profits to be distributed:
Generated as of 12.31.1983: 2002 Th Ch$ 2001 Th Ch$
--------------------------- ----------- -----------
Profits adjustment 1,854,413 1,854,413
Generated since 01.01.1984:
Without Credit 1,012,116 8,408
With 10% First Category Credit 79,860 79,773
With 15% First category Credit 92,897,950 95,997,214
With 15% Additional rate Credit 720 720
720With 16% First Category Credit 10,050,905 0
----------- ----------
SUB-TOTAL TAX PROFITS 104,041,551 96,086,115
Non-income revenues 6,611,407 6,604,151
----------- ----------
TOTAL RETAINED EARNINGS 110,652,958 102,690,266
27
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
DEFERRED TAXES
06-30-2002
----------
Asset Deferred Tax Liability Deferred Tax
------------------ ----------------------
Item Short term Long Term Short Term Long Term
---- ---------- --------- ---------- ---------
Temporary Differences
Reserve non-collectable accounts 119,185 0 0 0
Prepaid Income 395,257 0 0 0
Vacation provision 129,043 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 7,590,955
Severance payments 1,381 26,241 0 0
Other events 0 0 0 0
Packaging reserve 157,117 0 0 0
Machinery repair provision 196,275 0 0 0
Furnace repair provision 187,150 592,154 0 0
Stock obsolescence provision 41,077 0 0 0
Spare parts obsolescence provision 94,005 0 0 0
Negative Goodwill Amortization- bonds 47,366 0 0 0
Amortization commercial brands 263,767 0 0 0
Deferred customs duties 7,354 0 0 156,011
Accumulated depreciation automobiles 0 10,896 0 0
Non realized profits, related companies 40,634 1,829 0 0
Other provisions 119,933 97,597 0 13,592
Prepaid expenses 0 0 194,020 0
Lower value sale of bonds 0 0 0 214,286
Direct labor 8,671 0 0 0
Fixed assets, molds 0 0 0 271,323
Banking reserve 11,443 0 0 0
Tax losses 0 4,971,946 0 0
Deferred futures profits 0 0 0 0
Others
Supplementary accounts-net of amort. 201,049 4,309,529 0 4,262,538
Valuation provision 0 0
Total 1,618,609 1,391,134 194,020 3,983,629
06-30-2001
----------
Asset Deferred Tax Liability Deferred Tax
------------------ ----------------------
Item Short Term Long Term Short Term Long Term
---- ---------- --------- ---------- ---------
Temporary Differences
Reserve non-collectable accounts 58,553 0 0 0
Prepaid Income 518,670 0 0 0
Vacation provision 123,650 0 0 0
Intangible Amortization 0 0 0 0
Leased assets 0 0 0 0
Manufacturing expenses 0 0 173,233 0
Depreciations fixed assets 0 0 0 5,889,607
Severance payments 1,592 30,252 0 0
Other events 1,227 0 0 0
Packaging reserve 180,891 0 0 0
Machinery repair provision 50,998 0 0 0
Furnace repair provision 0 611,663 0 0
Stock obsolescence provision 29,074 0 0 0
Spare parts obsolescence provision 95,106 0 0 0
Negative Goodwill Amortization- bonds 22,303 0 0 0
Amortization commercial brands 212,669 0 0 0
Deferred customs duties 12,760 0 0 0
Accumulated depreciation automobiles 0 5,696 0 0
Non realized profits, related companies 3,157 13,453 0 0
Other provisions 52,814 112,539 1,518 9,823
Prepaid expenses 0 0 11,776 0
Lower value sale of bonds 0 0 0 0
Direct labor 4,345 0 0 0
Fixed assets, molds 0 0 0 140,937
Banking reserve 13,969 0 0 0
Tax losses 345,257 4,360,918 0 0
Deferred futures profits 0 0 0 0
Others
Supplementary accounts-net of amort. 664,049 3,959,380 132,730 4,142,766
Valuation provision 0 0
Total 1,062,986 1,175,141 53,797 1,897,601
28
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
INCOME TAX
06-30-2002 06-30-2001
Th Ch$ Th Ch$
------ ------
Current tax expense (tax provision) -2,257,399 -2,265,319
Adjustment tax expense (previous year) 0 -125,714
Effects from assets or liabilities, deferred year's tax -434,449 -90,034
Tax benefit from tax losses 0 69,193
Effect of amortiz. of supplementary accounts for
deferred assets and liabilities -34,713 -55,662
Effect on assets or liabilities from deferred tax from
changes in assessment provision 0 0
Other charges or credits to the account 232 0
Total -2,726,329 -2,467,536
29
09. CONTRACT OF LEASING SHORT AND LONG TERM AND FIXED ASSETS FOR LEASING
As of June 30, 2002, there are not any items included under this heading.
30
10. OTHER CURRENT ASSETS
As of June 30, 2002, the investment in financial instruments are included with
resale agreements for Th Ch$15,822,432 value by note 2 q), deferre expenses
for bonds investment for Th Ch$37.758 , Th Ch$27,816 for cash reserve and the
balance Th Ch$11,036 for Future Contracts.
In June 2001 there was a balance of Th Ch$4,392,178 for investments in
Financial Institutions with resale agreement, a balance of Th Ch$5,693,400 for
Future Contracts and Th Ch$27,940 for cash reserve.
31
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.
32
CRISTALERIAS DE CHILE S.A.
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
----- Original Price Final
Code Start End Counterpart Currency Set Rate Value Instrument Market Value
---- ----- --- ----------- -------- --- ---- ----- ---------- ------------
CRV 06.24.2002 07.01.2002 BCI Pesos 1,000,000 0.33 1,000,770 PDBC 1,000,660
CRV 06.10.2002 07.01.2002 Banco Chile Pesos 4,000,000 0.35 4,009,800 PDBC-PRD 4.009.333
CRV 05.31.2002 07.05.2002 Banco Chile Pesos 1,400,000 0.39 1,406,288 PRD 1,405,390
CRV 05.28.2002 07.02.2002 Banco Chile Dollars 2,032,670 2.05 2,137,206 PRD 2,136,963
CRV 05.29.2002 07.29.2002 Banco Chile Dollars 1,630,510 2.10 1,715,237 PRD 1,712,347
CRV 05.21.2002 07.01.2002 Banco Chile Dollars 294,498 2.05 310,169 PRD 310,152
CRV 06.03.2002 07.08.2002 Banco Chile Dollars 354,186 2.05 372,288 PRD 372,118
CRV 06.12.2002 07.22.2002 Banco Chile Dollars 790,695 2.05 822,163 PRD 821,150
CRV 06.17.2002 07.23.2002 Banco Chile Dollars 401,052 2.00 413,656 PRD 413,128
CRV 06.27.2002 08.26.2002 Banco Chile Dollars 295,798 2.05 289,968 PRD 289,030
CRV 06.28.2002 08.22.2002 Banco Chile Dollars 1,128,371 2.05 1,116,377 PRD 1,113,018
CRV 06.28.2002 07.09.2002 Banco Chile Dollars 209,286 2.00 206,541 PRD 206,438
CRV 02.19.2002 07.29.2002 Scotiabank Pesos 300,000 0.33 301,320 PRBC 300,396
CRV 06.26.2002 08.28.2002 Scotiabank Pesos 250,000 0.31 251,628 PRBC 250,129
CRV 06.27.2002 07.19.2002 Scotiabank Pesos 150,000 0.36 150,396 PRBC 150,072
CRV 06.27.2002 07.04.2002 Scotiabank Pesos 243,250 1.10 240,869 PRBC 240,847
CRV 06.28.2002 07.05.2002 JP Morgan Chase Bank Pesos 916,000 0.34 916,727 PRBC 916,208
CRV 06.27.2002 07.01.2002 Santiago C.B. Pesos 175,000 0.30 175,070 PDBC-DPF 175,053
CERO BANCO
33
12. FIXED ASSETS
Fixed Assets:
The Fixed Assets are shown at purchase cost plus the legal and regulatory
revaluations accumulated as of June 30, 2002 and 2001.
The items that make up the Company's fixed assets as of June 30, 2002 and 2001
include mainly Land, Industrial Constructions, Infrastructure Works,
Machinery, and Equipment distributed between the Padre Hurtado, Alto Jahuel
and San Sebastian plants.
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$6,543,737 in 2002 and Th
Ch$5,624,998 in 2001.
The detail is shown on an attached chart.
34
CRISTALERIAS DE CHILE S.A. AND SUBSIDIARIES
NOTE 12 - FIXED ASSETS
2002 2001
ThCh$ Th Ch$
----- ------
Land
Land 13,011,919 12,703,245
Mining Properties 0
Subtotal Lands 13,011,919 12,703,245
Depreciation Mining Property
Accumulated (13,712)
Fiscal year 0
Subtotal Depreciation 0 (13,712)
Subtotal Land 13,011,919 12,689,533
Buildings and Infrastructure Projects
Hi rises and industrial buildings 30,155,025 27,332,854
Installations 22,771,363 23,250,946
Residences 25,349 25,329
52,951,737 50,609,129
Depreciations
Accumulated (15,137,982) (12,910,160)
Fiscal year (1,183,941) (1,041,681)
Subtotal Depreciations (16,321,923) (13,951,841)
Subtotal Constructions and Projects 36,629,814 36,657,288
Machinery and Equipment
Machinery 88,033,447 82,153,840
Furnaces 36,569,855 34,655,618
Furniture and Furnishings 2,021,483 3,032,662
Rolling Stock 1,566,858 750,050
Tools 698,450 593,746
Subtotal 128,890,093 121,185,916
Depreciations
Accumulated (59,010,483) (50,629,886)
Fiscal year (5,258,943) (4,428,286)
Subtotal Depreciations (64,269,426) (55,058,172)
Subtotal Machinery and Equipment 64,620,667 66,127,744
Other Fixed Assets
Spare parts 4,978,225 5,441,762
Imports in transit 58,609 613,195
Work in progress 7,013,563 5,124,032
Lots in Pirque and Leyda 459,342 458,956
Deferred Customs Duties 477,798 569,067
Packages and Bundling 227,940 227,749
Other 1,618,127 1,516,397
Subtotal Other Assets 14,833,604 13,951,158
Depreciations 0 0
Accumulated 0 0
Fiscal year 0 0
Subtotal Depreciations 14,833,604 13,951,158
Total Fixed Assets 209,687,353 198,449,448
Total Accrued Depreciation (74,148,465) (63,553,758)
Total Depreciation for the Year (6,442,884) (5,469,966)
Total Net Fixed Assets 129,096,004 129,425,724
TECHNICAL REVALUATION AND ADJUSTMENT TO ACCOUNTING VALUES
2002 2001
Th Ch$ Th Ch$
------ ------
Land
Land 302,442 302,060
Subtotal net land and mining properties 302,442 302,060
Buildings and Infrastructure Projects
Hi rises and industrial buildings 6,046,285 5,986,472
Installations 428,896 428,536
Subtotal Buildings 6,475,181 6,415,008
Depreciation:
Previous period accumulated (4,879,306) (4,673,671)
Fiscal year (100,853) (100,769)
Subtotal depreciation (4,980,159) (4,774,440)
Subtotal Net Buildings 1,495,022 1,640,568
Machinery and Equipment
Furnaces 511,862 556,068
Machinery 979,760 1,002,437
Tools 52,866 52,821
Furniture and Furnishings 14,046 14,032
Subtotal Machinery and Equipment 1,558,534 1,625,358
Depreciation:
Previous Period Accumulated (1,558,534) (1,564,683)
Fiscal Year (54,263)
Subtotal depreciation (1,558,534) (1,618,946)
Subtotal Machinery and Equipment 0 6,412
TOTAL REVALUED ASSETS 8,336,157 8,342,426
TOTAL ACCUMULATED DEPRECIATION (6,437,840) (6,238,354)
TOTAL DEPRECIATION OF THE PERIOD (100,853) (155,032)
NET TOTAL 1,797,464 1,949,040
36
13. SALES TRANSACTIONS WITH LEASEBACK
These type of transactions were not carried out as of June 30, 2002 and 2001.
37
14. INVESTMENTS IN RELATED COMPANIES
The Corporation has valued its investments in related companies according to
rules indicated in note 2 o).
S.A. VINA SANTA RITA CONSOLIDATED
Sur Andino S.A.
Sur Andino S.A. was created on March 1, 2001 with a capital of Th$ 10,000 and
1,000 shaers. The corporation belongs 99.9% to Vina Carmen S.A. and 0.1% to
S.A. Vina Santa Rita.
CIECSA S.A. CONSOLIDATED
Simetral S.A
In the Special Shareholders' Meeting of July 23, 2001, the shareholders of
Simetral S.A., agreed to increase the company's capital of Th Ch$284,044 divided
into 1,000,000 shares to Th Ch$414,044 divided into 1,457,676 shares, by issuing
457,676 shares at a value of $284.0437 each one.
Ciecsa S.A. subscribed and paid in 373,006 shares of this issue on August 28,
2001 for a value of Th Ch$105,950 (historic) thereby maintaining its share of
81.5% of Simetral S.A.'s equity.
As of June 30, 2002, the investment in this subsidiary (Simetral S.A.) was
consolidated since the company started operating as of January 1, 2002 was
still in a development stage.
EDICIONES FINANCIERAS S.A.
On September 27, 2001, 523 shares of Ediciones Financieras S.A. were sold to
Recoletos Chile Limitada, generating a profit of Ch$161 million.
On the other hand, Ciecsa S.A. contributed 523 shares of Ediciones Financieras
S.A. to Ediciones Chiloe S.A., which generated a unrealized profit of Th
Ch$160,697 to be amortized in 10 years.
With the sale of 523 shares of Ediciones Financieras S.A. to Recoletos Chile
Ltda. and the contribution of 523 shares to Ediciones Chiloe S.A., Ciecsa S.A.
has been left without any direct share of Ediciones Financieras S.A.
EDICIONES CHILOE S.A.
Ciecsa sold 443,731 shares of Ediciones Chiloe S.A. to Recoletos Chile Ltda.
on September 27, 2001, whereby its stake in the company rose to 50%. This sale
generated profits of $567,5 million, plus the acknowledgement of a non
realized profit of $47,5 million as a result of having lowered the share in
that company from 75% to 50%.
Likewise, in the Special Shareholders' Meeting held on September 27, 2001, the
shareholders of Ediciones Chiloe S.A., agreed to increase the capital by Th
$684,308 by issuing 1,500,395 shares, which were subscribed by Ciecsa S.A. and
Recoletos Chile Ltda.
Of this issue 1,279,013 shares equivalent to Th Ch$583,339 were paid by
contributing 1,046 shares of Ediciones Financieras S.A. valued at Th
Ch$421,551 and the capitalization of loans for Th Ch$ 161,788 that the
shareholders had granted the company.
Payment of 221,382 shares is pending whose value totals Th Ch$100,969 that
will be paid within a period of three years.
On February 4, 2002, the partners of Ediciones Chiloe agreed to pay the 86,352
shares already subscribed. The subsidiary Ciecsa paid Th Ch$ 19,859 equivalent
to 43,176 shares, raising its stake to 50%.
ENVASES CMF S.A.
A Special Shareholders' Meeting of Crowpla Reicolite S.A. was held on June 29,
2001, where it was agreed to increase the company's capital to Th
Ch$26,220,315 divided into 56,000 shares, through the capitalization of Th
Ch$1,755,219 from the Revaluation Fund and Retained Earnings and the emission
of 29,000 cash shares equivalent to Th Ch$15,648,300.
Of this issue, Andina Inversiones Societarias S.A. subscribed and paid for
28,000 shares valued at Th Ch$15,149,749.
38
On its part, Cristalerias de Chile S.A., subscribed and paid for 1000 shares
valued at Th Ch$498,552.
With these operations, Cristalerias de Chile S.A.'s share rose to 28,000
shares, which represent 50% of the company's equity.
This association, which implied a reduction of the percentage share of
Cristalchile in the equity of Crowpla-Reicolite S.A., as of June 30, 2001,
resulted in a positive variation of the VPP of Th Ch$2,001,714, which was
included in Other Non-Operating Income.
During November 2001, the company changed its firm name to Envases CMF S.A.
INVESTMENTS ABROAD
RAYEN CURA S.A.I.C.
As of December 28, 2001, the parent company sold its subsidiary CristalChile
Inversiones S.A., the investment it had in Rayen Cura S.A.I.C., a company
located in the city of Mendoza, Argentine, for Th Ch$18,340,577 equivalent to
US$26,582,473 (including the irrevocable contribution made in July 2001 of
US$4,800,000). This transaction had no effects on results.
According to the provisions of Circular 81 of the S.V.S. of 01/22/2002, the
subsidiary adjusted Rayen Cura S.A.I.C.'s financial statements, considering a
rate of exchange of $1.7 Argentine pesos per US dollar, although the
devaluation of the peso with respect to the dollar was not registered in the
accounts in Argentina
As of June 30, 2002 a rate of exchange of $3.8 Argentine pesos per dollar has
been acknowledged in the financial statements of Rayen Cura S.A.I.C.. On its
part the subsidiary CristalChile Inversiones S.A., has adjusted the financial
statements of Rayen Cura S.A.I.C. to recognize a devaluation of between $1.7
to $3.8 Argentine pesos per dollar.
The accountable charge against results generated by the devaluation of the
Argentine peso totaled Th Ch$2,735,619 as of June 30, 2002.
As stipulated in Technical Bulletin No. 64 of the Accountants Association of
Chile, following is the information related to investments abroad:
2002
Th$
---
CristalChile Inversiones's share of
Rayen Cura S.A.I.C. 15,477,198
Negative goodwill(net of amortization) 5,380,266
------------
TOTAL 20,857,464
============
Loss due to devaluation (2,735,619)
Accrued losses (2,397,216)
The investment in Rayen Cura S.A.I.C. is controlled in dollars of the United
States of America.
VINA DONA PAULA S.A.
This company was organized on August 25, 1997 in Argentina. with the
subsidiary S.A. Vina Santa Rita contributing 99% of the capital.
The company's balance has been consolidated as of June 30, 2002. As of June 30,
2001 it was not included in the consolidation because Dona Paula S.A. was
still in a development stage.
This investment is recorded in pesos because it is considered an extension of
the investing company.
39
CRISTALERIAS DE CHILE S.A.
NOTE 14- INVESTMENTS IN RELATED COMPANIES
BREAKDOWN OF INVESTMENTS
Country Investment Shareholder
of Control Number of (Percentage)
R.U.T. Company Origin Currency Shares 03-30-2002 06-30-2001
------ ------- ------ -------- ------ ---------- ----------
78.619.410-5 Cordillera Comunicaciones Chile Peso 0 50.000000 50.000000
Holding
78.619.370-2 Cordillera Comunicaciones Chile Peso 0 0.250000 0.250000
Ltda.
89.150.900-6 Vina Los Vascos S.A. Chile Peso 60,000,000 43.000000 43.000000
90.684.000-6 Editorial Zig-Zag S.A. Chile Peso 114,516,900 49.894960 49.894960
96.793.770-3 Ediciones Chiloe S.A. Chile Peso 1,570,146 50.000000 75.000000
96.826.870-8 Inmobiliaria Don Alberto Chile Peso 3,817 38.170000 38.170000
S.A.
96.628.620-2 Inmobiliaira Y Const. Chile Peso 70 0.000000 7.000000
Richelieu S.A.
86.881.400-4 Envases CMF S.A. Chile Peso 28,000 50.000000 50.000000
96.939.140-6 Simetral S.A. Chile Peso 815,000 0.000000 81.500000
0-E Rayen Cura S.A.I.C Argentina Dollar 1,376,000 40.000000 40.000000
TOTAL
Company Net Result of
Equity Income Accrual
R.U.T. Company 06-30-2002 06-30-2001 06-30-2002 06-30-2001 06-30-2002 06-30-2001
------ ------- ---------- ---------- ---------- ---------- ---------- ----------
78.619.410-5 Cordillera Comunicaciones 147,902,374 162,243,329 -9,561,021 -9,157,515 -4,780,509 -4,578,757
Holding
78.619.370-2 Cordillera Comunicaciones 148,645,603 163,058,622 -9,609,066 -9,203,533 -24,023 -23,009
Ltda.
89.150.900-6 Vina Los Vascos S.A. 10,568,674 9,732,184 163,812 443,049 70,440 190,511
90.684.000-6 Editorial Zig-Zag S.A. 487,899 406,789 -180,652 -130,404 -90,104 -64,750
96.793.770-3 Ediciones Chiloe S.A. 1,599,060 0 63,532 0 -31,766 0
96.826.870-8 Inmobiliaria Don Alberto 725 369,880 -2,097 -25,305 -801 -9,659
S.A.
96.628.620-2 Inmobiliaira Y Const. 0 2,431 0 -6,589 0 -461
Richelieu S.A.
86.881.400-4 Envases CMF S.A. 28,389,476 27,060,624 -402,546 127,772 -201,273 63,886
96.939.140-6 Simetral S.A. 0 74,976 0 0 0 0
0-E Rayen Cura S.A.I.C 38,692,994 29,349,999 -5,993,040 468,062 -2,397,216 187,225
TOTAL
Income
not Book value
VPP Realized of Investment
R.U.T. Company 06-30-2002 06-30-2001 06-30-2002 06-30-2001 06-30-2002 06-30-2001
------ ------- ---------- ---------- ---------- ---------- ---------- ----------
78.619.410-5 Cordillera Comunicaciones 73,951,187 81,121,665 0 0 73,951,187 81,121,665
Holding
78.619.370-2 Cordillera Comunicaciones 371,614 407,647 0 0 371,614 407,647
Ltda.
89.150.900-6 Vina Los Vascos S.A. 4,544,530 4,184,879 0 0 4,544,530 4,184,879
90.684.000-6 Editorial Zig-Zag S.A. 243,437 202,967 0 0 243,437 202,967
96.793.770-3 Ediciones Chiloe S.A. 799,530 0 -228,899 -145,664 570,631 145,664
96.826.870-8 Inmobiliaria Don Alberto 277 141,183 0 0 277 141,183
S.A.
96.628.620-2 Inmobiliaira Y Const. 0 171 0 0 0 171
Richelieu S.A.
86.881.400-4 Envases CMF S.A. 14,194,738 13,530,311 0 0 14,194,738 13,530,311
96.939.140-6 Simetral S.A. 0 61,105 0 0 0 61,105
0-E Rayen Cura S.A.I.C 15,477,198 11,738,775 0 0 15,477,198 11,738,775
TOTAL 109,582,511 111,388,703 -228,899 -145,664 109,353,612 111,243,039
40
15. INVESTMENTS IN OTHER COMPANIES
Investments in other companies that totaled Th Ch$1,445,645 in June 2002 (Th
Ch$1,574,612 in 2001) are shown on attached charts.
CRISTALERIAS DE CHILE S.A.
NOTE 15 - INVESTMENTS IN OTHER CORPORATIONS
Number of Shareholding Book Value
R.U.T. Company Name Shares (Percentage) 06-30-2002 06-30-2001
------ ------------ --------- --------- ---------- ----------
96.895.100-9 Internet Holding S.A. 65,765 8.4500 859,036 988,496
0-E Bazuca.com Inc. 206,650 7.8900 583,619 583,129
96.787.750-6 Metropolis Intercom S.A. 1 0.0000 21 21
96.806.690-0 Proser S.A. 50 0.5000 2,969 2,966
41
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., Envases C.M.F. S.A., and
Rayen Cura S.A.I.C. have produced negative goodwill whose net balance to be
amortized as of June 30, 2002 totaled Th Ch$8,875,922 (Th Ch$10,302,694 in
2001).
POSITIVE GOODWILL
As of June 30, 2002 and 2001 the parent company and the subsidiaries do not
show any balance for this item.
More information is available on attached charts.
42
CRISTALERIAS DE CHILE S.A.
NOTE 15 GOODWILL ON INVESTMENTS
NEGATIVE GOODWILL
06-30-2002 06-30-2001
Amount Amortiz. Goodweill Amount Amortiz. Goodwill
R.U.T. Company Name this period Balance this period Balance
------ ------------ ----------- ------- ----------- -------
96.608.270-4 Ciecsa S.A. 58,619 1,465,474 58,570 1,581,382
86.881.400-4 Envases CMF S.A. 0 0 133,808 0
99.999.999-9 Rayen Cura S.A. 155,950 5,380,266 145,603 5,312,963
86.547.900-K S.A. Vina Santa Rita 24,261 613,389 24,240 661,355
89.150.900-6 Vina Los Vascos S.A. 42,932 1,238,331 59,255 1,293,226
90.684.000-6 Editorial Zig-Zag S.A. 3,071 108,239 3,068 114,285
96.539.380-3 Ediciones Financieras S.A. 0 0 39,080 1,261,933
79.952.350-7 Red Televisiva Megavision S.A. 3,696 70,223 3,693 77,550
TOTAL 288,529 8,875,922 467,317 10,302,694
43
17. INTANGIBLES
INTANGIBLES
The following values are included in this item:
Th Ch$ Th Ch$
2002 2001
---- ----
Trademarks 1,478,581 1,406,050
Concession of Channel 9
frequency and regional network 9,844,603 9,836,334
--------- ---------
TOTAL INTANGIBLES 11,323,184 11,242,384
========== ==========
ACCUMULATED AMORTIZATIONS
From Trademarks 157,833 141,624
From Channel 9 Frequency 726,340 599,776
------- -------
TOTAL AMORTIZATIONS 884,173 741,400
======= =======
44
18. OTHERS (ASSETS)
The following items are included under this item:
2002 2001
Th Ch$ Th Ch$
------ ------
Price differential bond adquisition 242,879
Celulosa Arauco bonds (*) 9,233,631
Cash Reserve 37,087 65,194
Local programs to be exhibited over
a year from the present 511,780 1,090,688
Foreign programs to be exhibited over
a year from the present 6,367 32,686
Negative goodwill Bond Sale (Net) 1,011,862 1,154,377
Future Contracts in foreign currency 0 323,033
Expenses of bond sales 214,589 252,298
Prepaid Custom Duty Interests 81,384 475,917
Long-Term Tax VAT Vina Dona Paula 173,849 402,131
Tax Minimun Profit Supposed 16,488 57,710
Other 25,998 1,119
---------- ---------
Total 11,555,914 3,855,153
========== ==========
(*) Celulosa Arauco bond sales equivalent to US$13,420,000 at a rate of 6.95%
annual due as September 15, 2005,
(**) 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.
45
18. OTHERS CURRENTS FIXED
INSTRUMENT DATE VALUE ACCOUNT VALUE VALUE MARKET PROVISION
---------- ------------------ ----- --------------- ------------- --------
Purchase Maturity Amount Rate
-------- -------- ------ ----
Bonds of Celulosa Arauco 11-15-2001 09-15-2005 4,157,397 4,319,653 6.95 4,202,703 -
Bonds of Celulosa Arauco 11-21-2001 09-15-2005 5,266,973 5,457,481 6.95 5,325,075 -
TOTAL 9,424,369 9,777,134 9,527,778
Note: 1. Did not carry out any Provision because there is not any intention of
the Short-Term Sale.
2. Th Ch$300,623 included account value. Corresponds interests earnings
and overprice paid recorded in Short-Term
46
19. SHORT-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
A detailed list of operations is shown on the attached chart.
47
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 Yen Currencies
---------------- ------------- ------------- --------------
Bank or Financial 06-30 06-30 06-30 06-30 06-30 06-30 06-30 06-30
R.U.T. Institution 2002 2001 2002 2001 2002 2001 2002 2001
------ ----------- ---- ---- ---- ---- ---- ---- ---- ----
Short term (code: 5.21.10.10)
97.036.000-K Banco Santiago 0 0 0 0 0 0 0 0
0E Banco Regional de Cuyo 0 0 0 0 0 0 3,160 0
97.018.000-1 Scotiabank Sudamericano 0 0 0 0 0 0 0 0
97.004.000-5 Banco Chile 0 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0 0
TOTAL 0 0 0 0 0 0 3,160 0
Amount capital due 0 0 0 0 0 0 2,900 0
Annual average interest rate 0.00 0.00 0.00 0.00 0.00 0.00 3.22 0.00
Long Term-Short Term (code: 5.21.10.20)
97.036.000-K Banco Santiago 0 18,424 0 0 0 0 0 0
0E The Chase Manhattan Bank 20,348,771 130,850 0 0 0 0 0 0
97.008.000-7 Citibank NA 1,894,956 2,408,518 0 0 0 0 0 0
0E Banco Dresner 999,559 981,361 0 0 0 0 0 0
0E Banco Argentaria 256,234 240,891 0 0 0 0 0 0
97.018.000-1 Scotiabank Sudamericano 0 0 0 0 0 0 0 0
97.006.000-6 Banco Credito e Inversiones 0 0 0 0 0 0 0 0
97.024.000-4 Banco de A. Edwards 0 0 0 0 0 0 0 0
97.004.000-5 Banco Chile
Other 0 0 0 0 0 0 0 0
TOTAL 23,499,520 3,780,044 0 0 0 0 0 0
Amount capital due 22,768,453 3,563,318 0 0 0 0 0 0
Average annual interest rate 3.35 8.01 0.00 0.00 0.00 0.00 0.00 0.00
Percentage oblig. foreign curr. (%) 100.0000
Percentage oblig. foreign curr. (%) 0.0000
CRISTALERIAS DE CHILE S.A.
NOTE 19 OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS, SHORT TERM (Cont'd)
Non-Adjustable
U.F. $ Total
---------------- ------------- -------------
Bank or Financial 06-30 06-30 06-30 06-30 06-30 06-30
R.U.T. Institution 2002 2001 2002 2001 2002 2001
------ ----------- ---- ---- ---- ---- ---- ----
Short term (code: 5.21.10.10)
97.036.000-K Banco Santiago 0 0 1,002,600 1,024,543 1,002,600 1,024,543
0-E Banco Regional de Cuyo 0 1,018,415 0 0 3,160 0
97.018.000-1 Scotiabank Sudamericano 0 0 0 92,531 0 1,110,946
97.004.000-5 Banco Chile 0 0 2 0 2 0
Other 0 0 0 0 0 0
TOTAL 0 1,018,415 1,002,602 1,117,074 1,005,762 2,315,489
Amount capital due 0 1,009,678 1,000,000 1,113,531 1,002,900 2,123,209
Annual average interest rate 0.00 5.99 4.68 8.01
Long Term-Short Term (code: 5.21.10.20)
97.036.000-K Banco Santiago 961 2,336,114 0 0 961 2,354,538
0-E The Chase Manhattan Bank 0 0 0 0 20,348,771 130,850
97.008.000-7 Citibank NA 0 0 0 0 1,894,956 2,408,518
0-E Banco Dresner 0 0 0 0 999,599 981,361
0E Banco Argentaria 0 0 0 0 256,234 240,891
97.018.000-1 Scotiabank Sudamericano 407,628 815,535 0 0 407,628 815,535
97.006.000-6 Banco Credito e Inversiones 165,073 123,059 0 0 165,073 123,059
97.024.000-4 Banco de A. Edwards 0 1,831,313 0 0 0 1,831,313
97.004.000-5 Banco Chile 188,012 188,012
Other 0 0 0 0 0 0
TOTAL 761,674 5,106,021 0 0 24,261,194 8,886,065
Amount capital due 736,339 5,076,763 0 0 23,504,792 8,640,081
Average annual interest rate 4.44 5.86 0.00 0.00 0.00 0.00
Percentage oblig. foreign curr. (%) 100.0000
Percentage oblig. foreign curr. (%) 0.0000
48
20. OTHER CURRENT LIABILITIES
As of June 30, 2002 there are balances of Th Ch$ 389,768 corresponding to a
differential in favor of financial institutions for future contracts in
foreign currency subscribed by the parent company and the subsidiaries S.A.
Vina Santa Rita and Ciecsa S.A.
As of June 30, 2001 there is not a balance for this item.
49
21. LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
The obligations with banks and financial institutions are presented on the
charts attached.
50
CRISTALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Institution Years of Maturity
----------- -----------------
Bank or Currency
Financial adjustment More than 1 More than 2 More than More than 5
R.U.T. Institution index up to 2 up to 3 3 up to 5 up to 10 More than 10 years
------ ----------- ----- ------- ------- --------- -------- ------------------
Amount Period
------ ------
Thou Ch$ Thou Ch$ Thou Ch$ Thou Ch$ Thou Ch$
-------- -------- -------- -------- --------
99.999.999-9 J.P. Morgan Chase Bank Dollars 19,658,572 19,658,572 9,829,285 - - -
90.008.000-K Citibank N.A. Dollars 1,626,300 813,150 0 - - -
Dollars 260,635 250,200 0 - - -
97.018.000-1 Banco Sudamericano UF 392,491 392,491 1,177,473 - - -
0-E Banco Dresner Dollars 0 0 0 - - -
97.006.000-6 Banco Credito e
Inversiones UF 163,552 163,552 122,664 - - -
97.036.000-K Banco Santiago UF 442,681 442,681 1,106,702 - - -
97.004.000-5 Banco Chile UF 278,639 1,180,118 0 - - -
0-E Banco Regional de Cuyo Other 5,035 9,691 19,382 11,370 - -
currencies -
0-E Banco Argentaria Dollars 262,017 250,450 0 - - -
TOTAL 23,089,922 23,160,905 12,255,506 11,370 -
Percentage of obligations in foreign currency 89.9800%
Percentage of obligations in local currency 10.0200%
CRISTALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS (Cont'd)
Closing date Closing date
Institution Current period Previous period
----------- -------------- ---------------
Total Long- Annual Total Long-
Bank or Term at closing average Term at closing
Financial of Financial interest of Financial
R.U.T Institution Statements rate Statements
----- ----------- ---------- ---- ----------
99.999.999-9 J.P. Morgan Chase Bank 49,146,429 3.375 64,220,900
90.008.000-K Citibank N.A. 2,439,450 2.605 3,814,897
510,835 4.39 720,614
97.018.000-1 Banco Sudamericano 1,962,455 TAB 180+2.0 812,954
0-E Banco Dresner 0 0 917,444
97.006.000-6 Banco Credito e Inversiones 449,768 TAB 90+2.00 612,689
97.036.000-K Banco Santiago 1,992,064 TAB 180+2.0 0
97.004.000-5 Banco Chile 1,458,757 TAB 180+2.0 0
0-E Banco Regional de Cuyo 45,478 3.22 83,492
0-E Banco Argentaria 512,467 4.89 722,675
TOTAL 58,517,70 71,905,665
51
22. SHORT-TERM AND LONG-TERM OBLIGATIONS WITH THE PUBLIC
(PROMISSORY NOTES AND BONDS)
As of June 30, 2002 and 2001, there are obligations with the public
corresponding to bonds of series A, C, and D issued by the subsidiary S.A.
Vina Santa Rita in UFs. This liability is shown in detail in the appendix.
52
CRISTALERIAS DE CHILE S.A.
NOTE 22: SHORT-TERM AND LONG-TERM OBLIGATIONS WITH PUBLIC
(PROMISSORY NOTES AND BONDS) BONDS
ISSUE
IN
REGISTRATION OR CURRENT INDEXING INSTALLMENTS CHILE
IDENTIFICATION No. DEPOSIT UNIT INTEREST FINAL INTEREST AMORTIZATION PAR VALUE OR
OF INSTRUMENT SERIES FACE VALUE OF BOND RATE MATURITY PAYMENT PAYMENT 06-30-2002 06-30-2001 ABROAD
------------- ------ ------------------ ---- -------- ------- ------- ---------- ---------- ------
LONG-TERM BONDS-
CURRENT PORTION
144-7.12.91 A 25,000 UF 6.59 06-01-2003 SEMI-ANNUAL SEMI-ANNUAL 411,089 412,874 LOCAL
241-15.12.00 C1 Interests 0 UF 6.29 12-15-2005 SEMI-ANNUAL SEMI-ANNUAL 8,251 8,288 LOCAL
241-15.12.00 D1 Interests 0 UF 6.29 12-15-2021 SEMI-ANNUAL SEMI-ANNUAL 4,126 4,144 LOCAL
241-15.12.00 D2 Interests 0 UF 6.29 12-15-2021 SEMI-ANNUAL SEMI-ANNUAL 37,133 37,298 LOCAL
TOTAL CURRENT PORTION 460,599 462,604
LONG-TERM BONDS
144-7.12.91 A 0 UF 6.59 06-01-2003 SEMI-ANNUAL SEMI-ANNUAL 0 408,459 LOCAL
241-15.12.00 C1 200,000 UF 6.29 12-15-2005 SEMI-ANNUAL SEMI-ANNUAL 3,271,040 3,267,674 LOCAL
241-15.12.00 D1 100,000 UF 6.29 12-15-2021 SEMI-ANNUAL SEMI-ANNUAL 1,635,520 1,633,837 LOCAL
241-15.12.00 D2 900,000 UF 6.29 12-15-2021 SEMI-ANNUAL SEMI-ANNUAL 14,719,680 14,704,532 LOCAL
LONG-TERM TOTAL 19,626,240 20,014,502
53
23. PROVISIONS AND WRITE-OFFS
Provisions
The Company has short-term provisions of Th Ch$14,068,416 as of June 30, 2002,
and Th Ch$10,194,923 in 2001.
Long-term provisions of Th Ch$7,140,084 and Th Ch$7,621,181 are recorded for
the years 2002 and 2001 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$735,271 and Th Ch$389,839, as
of June 30, 2002 and 2001, respectively.
The companies charged Th Ch$7,670 against provisions in 2002.
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 June 30, 2002 and 2001, as established in
Technical Bulletin No. 47 of the Accountants Association of Chile.
The net balance for this item is Th Ch$803,258 as of June 30, 2002 (Th
Ch$825,853 in 2001).
Provision for Furnace Reconstruction:
This reserve is established throughout the useful life of the refractory
bricks 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$4,715,514 and Th
Ch$$4,077,760 as of June 30, 2002 and 2001, respectively.
54
CRISTALERIAS DE CHILE S.A.
NOTE 23: PROVISIONS AND WRITE-OFFS
CONSOLIDATED
06-30-2002 06-30-2001
Thou Ch$ Thou Ch$
-------- --------
SHORT TERM
Share of Board of Directors 224,804 419,331
Severance Legal 58,168 59,995
Reserve direct cost 846,794 717,380
Furnace reconstruction 1,169,685 -
Machinery repair 1,207,849 339,985
Severance payments 158,413 157,120
Packing return to clients 952,226 1,159,133
Legal holidays 803,258 825,853
Spareparts reserve 446,387 634,041
Advertising agency commission 514,884 -
Insurance Policies 67,164 -
Purchases and sales comission 2,779,783 1,900,338
Local and foreign suppliers 1,060,855 1,510,773
Advertising and marketing 294,996 304,945
Copyright 283,538 239,259
Negative net worth in subsidiaries - 26,586
Grape harvest expenses 2,769,418 1,640,530
Other reserves 430,194 259,654
TOTAL 4,068,416 10,194,923
LONG TERM
Severance payment 3,594,255 3,543,421
Furnace reconstruction 3,545,829 4,077,760
TOTAL 7,140,084 7,621,181
58
24. SEVERANCE PAYMENT
The provision for severance payments to personnel is included at its current
value, as expressed in note 2 t).
In 2002 it amounts to Th Ch$3,752,668 (Th Ch$3,700,541 in 2001).
As of June 30, 2002, the parent company has paid severance payments of Th
Ch$34,716 (Th Ch$48,715 in 2001) chargeable against the provision.
56
25. OTHER LONG-TERM LIABILITIES
As of June 30, 2002 and 2001 there are no balances for this item.
57
26. MINORITY INTEREST
The subsidiaries that generate minority interests as of June 30, 2002 and 2001
are shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 26: MINORITY INTEREST
NET WORTH RESULTS SHAREHOLDING
--------- ------- ------------
Thou Ch$ Thou Ch$ Thou Ch$ Thou Ch$ % %
-------- -------- -------- -------- ------ ----
SUBSIDIARY COMPANY 2002 2001 2002 2001 2002 2001
S.A.Vina Santa Rita 33,371,564 30,362,343 (1,903,962) (1,256,966) 45.90 45.90
CIECSA Consolidated 2,190,441 2,173,079 (117,996) (274,153) 1.79 1.81
Constructora Apoger S.A. 9,288 9,381 851 995 20.00 20.00
Cristalchile Comunicaciones S.A. 1,471 1,729 95 89 0.01 0.01
TOTAL 35,572,764 32,546,531 (2,021,012) (981,729)
58
27. CHANGES IN EQUITY
a. Activity in 2002 and 2001
The activity of the capital and reserve accounts in the fiscal years ended in
June 30, 2002 and 2001, are shown in the attached charts.
b. Other Reserves
The detail of this item is as follows:
2002 2001
ThCh$ ThCh$
-------- ---------
Future capital increases 4,187,346 4,031,108
Reserve for adjustment of value of fixed assets 1,797,464 1,948,675
Adjustment for conversion difference in investment
in Rayen Cura S.A.I.C. 3,359,655 1,901,548
Difference VPP (211,058) (210,880)
---------- ---------
TOTAL OTHER RESERVES 9,133,407 7,670,451
========= =========
c. Accumulated Deficit for the Subsidiary Development Period
The negative variation in equity experimented by the company results from the
application of the VPP method carried out by CIECSA S.A. in its subsidiary
Simetral S.A., which was in a stage of development until December 31, 2001 and
has not started to operate, and its expenditures correspond to pre-operating
activities. In accordance with provisions in Circular Letter 981 of the
Insurance and Securities Commission, this deficit is treated as an accumulated
loss.
59
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NET WORTH
Paid-in Reserve capital Premium in Other Reserve
Capital revaluation sale of shares Reserves Future Dividends
------- ----------- -------------- -------- ----------------
ITEM
Balances as of 06/30/2002
Initial balance 62,863,356 0 26,794,558 7,942,919 102,798,113
Distribution result previous fiscal year 0 0 0 0 12,989,754
Final dividend previous fiscal year 0 0 0 0 -4,230,400
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 1,142,830 0
Eventual Dividend 0 0 0 0 0
Owner's equity Revaluation 0 377,180 160,766 47,658 673,578
Fiscal Year Result 0 0 0 0 0
Provisional Dividends 0 0 0 0 0
Final balances as of 3/31/2002 62,863,356 377,180 26,955,324 9,133,407 112,231,045
Initial balance as of 06/30/2001 60,973,187 0 25,988,901 6,166,094 91,287,845
Distribution result previous fiscal year 0 0 0 0 12,778,031
Final dividend previous fiscal year 0 0 0 0 -2,660,480
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 1,254,099 0
Eventual Dividend 0 0 0 0 -1,728,00
Owner's equity revaluation 0 914,598 389,833 92,491 1,505,529
Fiscal Year Result 0 0 0 0 0
Provisional Dividends 0 0 0 0 0
Final balances 60,973,187 914,598 26,378,734 7,512,684 101,182,925
Updated Final Balances as of 3/30/2001 62,253,624 933,806 26,932,687 7,670,451 103,307,766
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NET WORTH
Accumulated Provisional Devel. Fiscal
Results Dividends Period Deficit Year Result
------- --------- -------------- -----------
ITEM
Balances as of 06/30/2002
Initial balance 17,700,611 -4,657,728 -123,129 0
Distribution result previous fiscal year -17,770,611 4,657,728 123,129 0
Final dividend previous fiscal year 0 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 0 0 0 0
Fiscal Year Result 0 0 0 3,571,663
Provisional Dividends 0 -960,000 0 0
Final balances as of 3/31/2002 0 -960,000 0 3,571,663
Initial balance as of 06/30/2001 17,042,239 -4,156,672 -107,536 0
Distribution result previous fiscal year -17,042,239 4,156,672 107,536 0
Final dividend previous fiscal year 0 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 -90,778 0
Accumulated conversion difference adjustment 0 0 0 0
Eventual Dividend 0 0 0 0
Owner's equity revaluation 0 -5,376 0 0
Fiscal Year Result 0 0 0 8,956,136
Provisional Dividends 0 -1,344,000 0 0
Final balances 0 -1,349,376 -90,778 8,956,136
Updated Final Balances as of 3/30/2001 0 -1,377,713 -92,684 9,144,215
60
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH - NUMBER OF SHARES
No. No. No.
SHARES SHARES SHARES WITH
SERIES SUBSCRIBED PAID 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 62,863,356 62,863,356
61
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH - DEFICIT ACCUMULATED IN DEVELOPMENT PERIOD OF
SUBSIDIARY
AMOUNT
RUT COMPANY FISCAL YEAR ACCUMULATED COMMENTS
----- --------- ----------- ----------- --------
0-E 0 0 0 0
62
28. OTHER NON-OPERATING INCOME AND DISBURSEMENTS
As of June 30, 2002 and 2001 the non-operating income totals Th Ch$518,510 and
Ch$5,410,810 respectively.
Non-operating Expenditures were Th Ch$1,638,641 in 2002 and Th Ch$917,085 in
2001.
More detail is shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 28: OTHER NON-OPERATING INCOME AND EXPENSES
2002 2001
Th Ch$ Th Ch$
------ ------
INCOME
Other income 164,996 172,703
Sales of shares 2,931,587
Offices and establishments rental 146,237 149,184
Tax exemptions 68,532 142,295
Sale of fixed assets 22,506 0
Indemnity for claims 5,340 0
Amortization of non-realized profits 15,915 3,722
Sale of materials 16,869 9,605
Cesion derechos Crowpla-Recplite S.A. 2,001,714
Other income 78,115 0
TOTAL NON-OPERATING INCOME 518,510 5,410,810
EXPENSES
Professional advice 386,330 413,813
Drama series charge off (Stgo. City) 298,356 153,150
Severance payments 8,216 51,637
Share of Board of Directors 81,187 53,562
Frequency amortization 66,031 59,979
Contracts and contingencies 149,194 0
Loss in sales of fixed assets 28,129 17,848
Trademarks amortization 23,771 0
Comunications 169 0
Amortization smaller value of bonds 71,278 71,672
Insurance 10,818 5,219
Other expenses 515,162 90,204
TOTAL NON-OPERATING EXPENSES 1,638,641 917,085
63
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 2002
fiscal year in the amount of Th Ch$923,251 and a net charge against results of
Th Ch$200,519 in 2001.
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 06-30-2002 06-30-2001
-------------- ---------- ----------
INVENTORY CPI 33,644 304,859
FIXED ASSETS CPI 791,363 1,643,618
INVESTMENTS IN RELATED COMPANIES CPI 523,389 530,588
MARKETABLE SECURITIES CPI 19,714 0
SHORT-TERM DEBTORS CPI 22,873 0
ACCOUNTS RECEIVABLE RELATED COMPANIES CPI 0 0
LONG-TERM DEBTORS CPI 1,107 0
OTHER NON-MONETARY ASSETS CPI -116,590 1,957,337
EXPENSE AND COST ACCOUNTS CPI 342,463 515,154
TOTAL (DEBITS)/CREDITS 1,617,963 4,951,556
LIABILITIES (DEBITS)/ CREDITS
NET WORTH CPI 0 0
OBLIGATIONS WITH THE PUBLIC CPI -115,014 -272,240
BANK LOANS CPI -126,034 0
ACCOUNTS PAYABLE RELATED COMPANIES CPI -98 0
SHORT-TERM RESERVES CPI -731 0
LONG-TERM CREDITORS CPI -387 0
LONG-TERM RESERVES CPI 29,154 0
LONG-TERM BANK LOANS CPI -306,232 0
OTHER LIABILITIES CPI -149,877 -403,186
SHAREHOLDERS' EQUITY CPI -1,259,182 -2,957,915
MINNORITY INTEREST CPI -31,938 -441,771
NON-MONETARY LIABILITIES CPI 0 0
INCOME ACCOUNTS CPI -580,875 -675,925
TOTAL (DEBITS)/ CREDITS -2,541,214 -4,751,037
(LOSS) PROFIT FROM ADJUSTMENT FOR CURRENCY DEVALUATION -923,251 200,519
64
30. RATE OF EXCHANGE DIFFERENTIAL
There is a net credit to results in the 2002 fiscal year of Th Ch$2,898,533
and of Th Ch$345,844 in 2001 because of a rate of exchange differencial.
More information is shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 30: EXCHANGE DIFFERENCES
ITEM CURRENCY AMOUNT
06-30-2002 06-30-2001
---------- ---------- -----------
CURRENT ASSETS DOLLARS 573,297 186,294
CURRENT ASSETS OTHER CUR. 20,850 -303
CLIENTS DOLLARS 202,199 262,561
CLIENTS OTHER CUR. 539,628 29,425
TIME DEPOSITS DOLLARS 557,094 1,520,558
INVENTORY DOLLARS 193,247 317,242
INVENTORY OTHER CUR. -639 0
MARKETABLE SECURITIES DOLLARS 359,804 0
ACCOUNT RECEIVABLE E.E.R.R. DOLLARS 0 4,804
LONG-TERM PLACEMENT DOLLARS 458,754 0
OTHER ASSETS DOLLARS 296,522 334,404
OTHER ASSETS OTHER CUR. 3,787 5,399
TOTAL (DEBITS) CREDITS 3,204,543 2,660,384
SHORT TERM BANK CREDITS DOLLARS 0 -2,156
MISCELLANEOUS CREDITORS LONG TERM DOLLARS -122,774 -85,074
DOCUMENTS PAYABLE DOLLARS -282,788 -978,540
DOCUMENTS PAYABLE OTHER CUR. -83,459 -18,186
MISCELLANEOUS CREDITORS SHORT TERM DOLLARS -14,798 -20,122
SHORT TERM PROVISIONS DOLLARS -59,923 -100,068
LONG TERM BANK CREDITS DOLLARS 596,267 -580,469
LONG TERM PROVISIONS DOLLARS -168,650 -346,698
ACCOUNT PAYABLE DOLLARS 0 -137,361
OTHER LIABILITIES DOLLARS -83,925 -41,332
OTHER LIABILITIES OTHER CUR. -85,960 -4.534
TOTAL (DEBITS) CREDITS -306,010 -2,314,540
(LOSS) PROFIT FROM RATE OF EXCHANGE DIFFERENCE 2,898,533 345,844
65
31. EXTRAORDINARY ITEMS
As of June 30, 2001 the partial reversion of the provision for the repair of
Furnace C of Th Ch$1,822,561 net of tax was acknowledged, because the furnace
was completely rebuilt instead of being repaired.
As of June 30, 2002 there are no transactions in this item.
66
32. EXPENSES FOR THE ISSUE AND PLACEMENT OF STOCKS AND DEBT INSTRUMENTS
The subsidiary S.A. Vina Santa Rita carried out a sale of bonds in March 2001,
incurring in Sales Expenses that as of June 30, 2002 total Th Ch$252,348 and
are classified as Short-Term Prepaid Expenses Th Ch$37,758 and Other Long-term
Assets Th Ch$214,589. The charge against Results for the amortization of these
expenses is Th Ch$21,542.
Following is an itemized list of the expenses.
2002 2002 2001 2001
ThCh$ ThCh$ ThCh$ ThCh$
Short-term Long-term Short-term Long-term
---------- --------- ---------- ---------
Stamp tax 27,002 195,766 29,228 195,217
Sales commission 10,756 18,823 11,070 55,278
Printing expenses 0 0 268 1,803
-------- -------- ------- --------
TOTAL 37,758 214,589 40.566 252.298
67
31. 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:
2002 2001
Th Ch$ Th Ch$
541.11.40 Other Income Received
Recover VAT exportation 1,027,389 0
Franquicia Taxable 68,352 142,295
Discount for paid of customs duties 230,225 0
Redemption Long-Term Bons 68,465 0
Other income 272,853 111,916
Total 1,667,284 254,211
541.11.80 Other expenses paid
Drama area expenses 298,356 153,150
Colo Colo contract 112,888 0
Suppliers 382,480 0
Severance payments 8,216 51,637
Advice Services 67,059 60,855
Participacion Profits 81,187 53,563
Customs Duties 60,415 0
Exchange difference 429,997 569,545
Donations 35,644 24,788
Other expenses 362,774 119,178
Total 1,839,016 1,032,716
541.12.75 Other expenses for financing made (Payment for Financing)
Tax de timbres Credit Bank Paid 481 54,428
Total 481 54,428
541.13.15 Sale of other investments
LP bond share 0 5,436,701
Sale of PRC 0 3,462,390
Redemption Time Dep. over 90 days 10,748,618 922,202
Total 10,748,618 9,821,293
541.13.30 Other investment income
Maturity of future contracts 2,044,677 524,544
Total 2,044,677 524,544
541.13.65 Other investment made
Purchase of shares 340,047 40,328
Future contracts 354,882 0
Others 5,601
Total 700,530 40,328
68
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 150 960,000 July-02
Amounts payable investment 248,925 July-02
Amounts payable investment 392,175 August-Sept.-02
1,601,100
69
34. DERIVATIVE CONTRACTS
FUTURE CONTRACTS IN FOREIGN CURRENCY
The parent company and its subsidiaries S.A. Vina Santa Rita and Ciecsa S.A.
have signed future sales contracts in foreign currency of Th US$139,800 in
2002 (Th US$140,430 in 2001) 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. 31.
70
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS
CRISTALERIAS DE CHILE S.A. NOTE 34: DERIVATIVE CONTRACTS
DESCRIPTION OF CONTRACTS
---------------------------------------------------
MATURITY OR PURCHASE/
TYPE OF TYPE OF VALUE OF EXPIRATION SPECIFIC SALE PROTECTED ITEM OR TRANSACTION Value of
DERIVATIVE CONTRACT CONTRACT DATE ITEM POSITION NAME AMOUNT Protected Item
---------- -------- -------- ---- ---- -------- ---- ------ --------------
FR CI 36,466,650 THIRD 2002 EXCH RATE P 0 0 0
FR CI 23,806,530 FOURTH 2002 EXCH RATE P 0 0 0
FR CI 17,201,250 FIRST 2003 EXCH RATE P 0 0 0
FR CI 4,816,350 SECOND 2003 EXCH RATE P 0 0 0
FR CCPE 675,300 FIRST 2003 EXCH RATE P DOLLAR LOAN 675,300 668,050
FR CCPE 2,788,360 FOURTH 2002 EXCH RATE P DOLLAR LOAN 2,788,360 2,752,200
FR CCPE 62,260 FOURTH 2002 EXCH RATE P DOLLAR LOAN 62,260 68,805
FR CCPE 62,260 THIRD 2002 EXCH RATE P DOLLAR LOAN 62,260 68,805
FR CCPE 2,788,360 FOURTH 2002 EXCH RATE P DOLLAR LOAN 2,788,360 2,752,200
FR CCPE 1,331,880 FIRST 2003 EXCH RATE P DOLLAR LOAN 1,331,880 1,376,100
FR CCPE 1,331,000 FIRST 2003 EXCH RATE P DOLLAR LOAN 1,331,000 1,376,100
FR CCPE 675,300 FIRST 2003 EXCH RATE P DOLLAR LOAN 675,300 688,050
FR CCPE 668,000 FIRST 2003 EXCH RATE P DOLLAR LOAN 668,000 688,050
FR CCPE 668,000 FIRST 2003 EXCH RATE P DOLLAR LOAN 668,000 688,050
FR CCPE 1,328,880 FIRST 2003 EXCH RATE P DOLLAR LOAN 1,328,880 1,376,100
FR CCPE 665,940 FIRST 2003 EXCH RATE P DOLLAR LOAN 665,940 668,050
FU CI 1,334,140 SECOND 2003 EXCH RATE P 0 0 0
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS (Cont'd)
ACCOUNTS AFFECTED
ASSETS/LIABILITIES EFFECT ON RESULT
-------------------------- ------------------------
NOT
NAME AMOUNT REALIZED REALIZED
---------- ----------- ---------- ------------
LIABILITIES 598,835 -598,835 0
LIABILITIES 328,701 -328,701 0
LIABILITIES 367,637 367,637 0
LIABILITIES 173,643 173,643 0
ASSETS 4,137 4,137 0
LIABILITIES 90,259 90,259 0
ASSETS 4,873 4,873 0
ASSETS 4,939 4,939 0
LIABILITIES 91,166 91,166 0
ASSETS 41,021 41,021 0
ASSETS 34,735 34,735 0
ASSETS 4,091 4,091 0
ASSETS 16,505 16,505 0
ASSETS 16,859 16,859 0
ASSETS 44,316 44,316 0
ASSETS 20,985 20,985
LIABILITIES 3,512 3,512 0
71
35. CONTINGENCIES AND RESTRICTIONS
CONTINGENCIES AND COMMITMENTS
As of June 30, 2002, there is a guarantee delivered in the amount of Th
Ch$7,667 (Th Ch$ 6,843 in 2001), according to the detail in the attached
chart.
LAWSUITS OR OTHER LEGAL ACTIONS THE COMPANY IS INVOLVED IN
As of June 30, 2002 and 2001 there are pending lawsuits and other legal actions
corresponding to the subsidiary Red Televisiva Megavision, which are presented
in the annexed chart.
OTHER CONTINGENCIES
In relation to the syndicated loan subscribed with JP Morgan Chase Bank and
other 8 creditor banks for US$ 100 million, the following specific financial
obligations exist:
a) TOTAL CONSOLIDATED DEBT TO CAPITALIZATION RATIO
Cristalerias de Chile S.A will not allow the Total Consolidated Debt to Debt
to Capitalization Ratio to exceed the 0.36 to 1.0 ratio at any time.
The capitalization ratio for Cristalerias de Chile S.A. and its subsidiaries
is the sum: Net Equity plus Minority Interests plus Total Consolidated Debt.
b) NON-CONSOLIDATED NET DEBT TO EBITDA RATIO
Cristalerias de Chile S.A will not allow the Non-consolidated Net Debt to
EBITDA ration to exceed the 3.0 to 1.0 ratio at any time.
The non-consolidated EBTDA is the sum of the following: operating income plus
depreciation and amortization, plus non-cash charges (in the extent that they
have been deducted to determine the operating income and cash income for
interests minus non-cash credits (in the extent that they have been added when
determining operating income), in each case for such period.
c) INTEREST COVERAGE RATIO
Cristalerias de Chile S.A. will not allow the Interest Coverage Ratio to be
lower than the following ratios in any point in time during the following
respective periods: the period from the date the Credit Agreement is entered
into until December 31, 2000, ratio 4.00; period between January 1, 2001 and
December 31, 2002, ratio 3.50; and period from January 1, 2003 and during the
entire following period, ratio 4:00.
The Interest Coverage is understood as the day when it is determined, the
ratio between the non-consolidated EBITDA for the four consecutive fiscal
quarters ending on, or most recently ended before, that date, and the Interest
Expenses for that period.
d) NET EQUITY
Cristalerias de Chile S.A. will maintain a minimum of the following amounts:
period from the date the Credit Agreement is entered into until December 31,
2002, UF 10,000,000 and period from January 1, 2003 and during the entire
following period, UF 11,900,000.
Cristalerias de Chile S.A. and all its subsidiaries executed with 100% of
restrictions of the creditors.
72
ECONOMY ARGENTINE CONTEXT
As of June 30, the fixed of Rep. Argentina, represents 5.6% of the consolidated
fixed of the company. Likewise, the investments maintained in that country
represents 10.5% of the company equity
Since is ampe knowlegdge the economy argentine context which is throught the
Republic of Argentina do it possible, in this moments, to forsee which will be
its evolution, likewise the consequences this could have in the economy and
fonancial possition of the subsidiay S.A. Vina Santa Rita for its indirect
investment in Vinla Dona Paula S.A., and the affiliate Cristalchile
Investments S.A., for its investment in Rayen Cura S.A.I.C, both in Argentina.
For which reason, the presents financial statements are not include the
effects that could results of the adverse condotions thqt could occur in the
future, in consequence, must be read to consider these condition.
OTHER CONTINGENCIES
As of June 30, 2002 and 2001, management is not aware of any other
contingencies that could affect the company.
74
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - DIRECT GUARANTEES
CREDITOR OF GUARANTEE DEBTOR TYPE OF ASSETS COMMITTED BALANCES PENDING
GUARANTEE
------------------------------------------ ------------------- ---------------------------
NAME RELATIONSHIP TYPE BOOK PAYMENT AS OF CLOSING DATE
VALUE OF FINANCIAL STATEMENTS
06/30/2001 06/30/2000
----------------------- ---------------- --------- --------- ---- --------- ---------- ----------
EDIFICIO METROPOLIS AGF CRISTALERIAS DE
CHILE S.A. COMMERCIAL DEPOSIT FLOOR 7,667 7,667 6,843
BANCO SANTIAGO RED TELEVISIVA
MEGAVISION COMMERCIAL MORTGAGE LAND 3,568,275 1,993,025 2,336,114
SCOTIABANK RED TELEVISIVA
MEGAVISION COMMERCIAL PLEDGE TV EQUIP 371,130 2,370,083 1,617,653
BANCO CREDITO E INVERS RED TELEVISIVA
MEGAVISION COMMERCIAL MORTGAGE TV EQUIP 176,575 614,841 735,748
SUNDRY CLIENTS RED TELEVISIVA
MEGAVISION COMMERCIAL ADVERTISING 0 0 8,973,613 7,388,352
CREDITOR OF GUARANTEE RELEASE OF GUARANTEES
------------------------------------------------------------------------
06/30/2003 ASSETS 06/30/2004 ASSETS 06/30/2005 ASSETS
----------------------- ---------- -------- ---------- -------- ---------- --------
EDIFICIO METROPOLIS AGF 0 0 0 0 7,667 7,667
BANCO SANTIAGO 0 0 442,681 0 442,681 0
SCOTIABANK 392,491 0 392,491 0 392,491 0
BANCO CREDITO E INVERS 163,552 0 163,552 0 163,552 0
SUNDRY CLIENTS 0 0 0 0 0 0
75
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - INDIRECT GUARANTEES
CREDITOR OF GUARANTEE DEBTOR TYPE OF ASSETS
GUARANTEE COMMITTED
--------------------------------------------- ---------------
NAME RELATIONSHIP TYPE BOOK
VALUE
--------------------- -------------------- --------- --------- ---- -----
Societe des RAYEN CURA S.A.I.C. AFFILIATE SOLIDARY 0 0
Participations
Financieres et
Industrielles
CREDITOR OF GUARANTEE BALANCES PENDING RELEASE OF GUARANTEES
------------------------ -------------------------------------------------------------------------
PAYMENT AS OF CLOSING DATE
OF FINANCIAL STATEMENTS
06-30-2002 06-30-2001 06-30-2003 ASSETS 06-30-2004 ASSETS 06-30-2005 ASSETS
--------------------- ---------- ---------- ---------- ------ ---------- ------ ---------- ------
Societe des 3,566,851 3,699,124 792,634 0 792,634 0 1,981,583 0
Participations
Financieres et
Industrielles
76
CRISTALERIAS DE CHILE S.A.
NOTE 35: Trials
Court Cause Rol No. Origin Process Stage Committed amount
(approximately Th Ch$)
----- ------------- ------------ ------- --------------------------------- ----------------------
22 5655-1999 Civil First Proof in cause not received yet 470,000
16 4822-1999 Civil Second Revision and verdict pending 100,000
12 3025-1997 Civil Second Revision and verdict pending 100,000
1 1242-2000 Labor First Verdict pending 10,000
5 3468-2001 Labor First Verdict pending 10,000
1 3538-2000 Labor First Verdict pending 15,000
2 2294-1999 Local police Second Revision and verdict pending 9,500
78
36. GUARANTEES OBTAINED FROM THIRD PARTIES
As of June 30, 2002 and 2001 the company has received guarantees from third
parties that are shown below:
Item
2002 2001
ThCh$ ThCh$
---------------------------------------------- -------- -------
Rental of Property BankBoston UF 367.69 6,017 6,011
Rental of Property to Telecomunicaciones
Cono Sur Ltda. (UF 130) 2,126 2,124
Rental of Property Office 202 AGF Building 3,843 3,839
Security Bank (UF 317.90) 5,199 0
Sight drafts suppliers 12,157 1,245
Installation of Buin Tanks (Tersanoix S.A.) 0 158,990
Purchase of vine stem cuttings and plants (Intelmaq) 43,265 0
Underground materials storehouse Buin Salfa Montajes 32,355 0
Grape purchase 131,365 70,893
------- -------
236,327 243,102
======= =======
79
37. LOCAL AND FOREIGN CURRENCY
Charts are attached showing the foreign currency balance as of June 30, 2002
and 2001.
CRISTALERIAS DE CHILE S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - ASSETS
Amount
Items Currency 06-30-2002 06-30-2001
----- -------- ---------- ----------
Available funds Non-adjust. Ch$ 1,122,015 1,783,962
Dollars 259,447 679,756
Other currencies 1,090 0
Euros 13,844 0
Argentinian Pesos 38,533 0
Time deposits Adjustable Ch$ 6,153,816 9,306,420
Dollars 15,237,975 25,552,583
Marketable Securities Adjustable Ch$ 3,667,806 3,313,467
Non-adjust. Ch$ 190,739 154,576
Dollars 6,521,246 0
Sales receivable Non-adjust Ch$ 23,249,820 27,921,705
Dollars 3,694,690 0
Euros 3,821,510 0
Other currencies 1,811,822 0
Documents Receivable Non-adjust. Ch$ 5,900,240 4,264,810
Dollars 36,993 0
Argentinian Pesos 8,354 0
Sundry Debtors Adjustable Ch$ 589 144,626
Non-adjust. Ch$ 1,075,332 568,304
Dollars 19,710 11,730
Euros 14,421 0
Argentinian Pesos 23,347 0
Documentos and Accts. Receivable Adjustable Ch$ 340,807 300,710
Non-adjust. Ch$ 55,998 11,006
Dollars 0 66,199
Inventory Adjustable Ch$ 37,353,545 32,031,331
Dollars 2,376,726 2,434,649
Argentinian Pesos 272,985 0
Taxes Receivable Non-adjust. Ch$ 254,080 983,139
Argentinian Pesos 41,743 0
Prepaid expenses Adjustable Ch$ 1,036,539 766,423
Dollars 118,836 35,976
Deferred Taxes Non-adjust. Ch$ 1,424,589 1,009,189
Other Current Assets Adjustable Ch$ 1,470,965 0
Non-adjust. Ch$ 6,801,850 4,420,118
Dollars 7,626,227 5,693,400
FIXED ASSETS Adjustable Ch $ 130,893,468 131,374,398
Investments in other companies Non-adjust. Ch$ 1,445,645 1,574,612
Negative Goodwill Adjustable Ch$ 8,875,922 4,989,731
Dollars 0 5,312,963
Long-term debtors Adjustable Ch$ 206,275 144,390
Intangibles Adjustable Ch$ 11,323,184 11,242,384
Amortization Adjustable Ch$ -884,173 -741,400
Long-term documents receivable. Non-adjust. Ch$ 1,362 0
Other Adjustable Ch$ 11,555,914 0
Non-adjust. Ch$ 0 979,689
Dollars 0 2,875,464
Investments in related companies Adjustable Ch$ 109,353,612 99,504,264
Dollars 0 11,738,775
Total Assets Non-adjust. Ch$ 41,267,590 42,687,971
Dollars 35,891,850 54,401,495
Other currencies 1,812,912 0
Euros 3,849,775 0
Argentinian Pesos 384,962 0
Adjustable Ch$ 321,602,349 293,359,883
80
CRISTALERIAS DE CHILE S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - CURRENT LIABILITIES
ITEM Currency Up to 90 days
---- -------- -------------
06.30.2002 06.30.2001
------------------------ --------------------------
Amount Avg.Annual Amount Avg.Annual
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
-------- --------- -------- ---------
Current Liabilities
Short-term obligations with banks Adjust. Ch$ 0 0 92,531 0
and financial institutions Adjust. Ch$ 1,002,602 4.68 1,024,543 6.25
Dollars 0 0 18,424 7.6
Dollars 0 0 130,580 4.89
Dollars 0 0 0 0
Other currencies 0 0 0 0
Long-term obligations with banks Adjust. Ch$ 42,980 4.44 0 0
and financial institutions Dollars 21,109,874 3.375 756,288 6.25
Dollars 51,457 11.0 0 0
Long-term obligations Adjust. Ch$ 0 0 0 0
Obligations with the public Adjust. Ch$ 0 0 462,604 0
Dividends payable Non-adjust. Ch$ 536,729 0 941,417 0
Accounts payable Non-adjust. Ch$ 14,447,045 0 10,466,831 0
Dollars 496,525 0 993,499 0
Euros 13,940 0 0 0
Argentinian Pesos 37,730 0 0 0
Other currencies 12,040 0 0 0
Documents Payable Adjust. Ch$ 50,033 0 48,366 0
Dollars 1,859,687 0 3,878,565 0
Euros 100,422 0 40,163 0
Other currencies 314,207 0 526,297 0
Sundry Creditors Non-adjust. Ch$ 465,823 0 371,522 0
Dollars 34,403 0 32,110 0
Docts and accts payable to rel co. Adjust. Ch$ 301,370 0 284,677 0
Non-adjust. Ch$ 377,960 0 168,933 0
Dollars 929,088 0 196,951 0
Provisions Adjust. Ch$ 12,587 0 161,293 0
Non-adjust. Ch$ 10,442,793 0 7,146,836 0
Dollars 1,437,454 0 7,738 0
Argentinian Pesos 2,075 0 0 0
Euros 239,733 0 0 0
Other currencies 461,479 0 0 0
Withholdings Non-adjust. Ch$ 1,722,733 0 1,809,798 0
Argentinian Pesos 5,550 0 0 0
Prepaid income Non-adjust. Ch$ 2,325,044 0 3,457,796 0
Other Current Liabilities Non-adjust. Ch$ 389,768 0 0 0
Total Current Liabilities Adjust. Ch$ 1,409,572 - 2,074,014 -
Dollars 25,918,488 - 6,014,425 -
Other currencies 787,726 - 526,297 -
Non-adjust Ch$ 30,707,895 - 24,363,133 -
Euros 354,095 - 40,163 -
Argentinian Pesos 45,355 - 0 -
81
CRISTALERIAS DE CHILE S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - CURRENT LIABILITIES
ITEM Currency 90 Days to 1 Year
---- -------- -----------------
06.30.2002 06.30.2001
---------------------- ------------------------
Amount Avg.Annual Amount Avg.Annual
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
-------- --------- -------- ---------
Current Liabilities
Short-term obligations with banks Adjust. Ch$ 0 0 5,106,021 5.86
and financial institutions Adjust. Ch$ 0 0 28,170 7.0
Dollars 0 0 1,018,415 5.99
Dollars 0 0 173,024 11.0
Dollars 0 0 2,874,482 0
Other currencies 3,160 3.22 0 0
Long-term obligations with banks Adjust. Ch$ 719,265 4.44 0 0
and financial institutions Dollars 2,389,075 3.66 0 0
Dollars 149,062 11.0 0 0
Long-term obligations Adjust. Ch$ 1,182 7.0 0 0
Obligations with the public Adjust. Ch$ 460,599 6.44 0 0
Dividends payable Non-adjust. Ch$ 0 0 1,104 0
Accounts payable Non-adjust. Ch$ 0 0 0 0
Dollars 387,412 0 347,112 0
Euros 0 0 0 0
Argentinian Pesos 0 0 0 0
Other currencies 0 0 0 0
Documents Payable Adjust. Ch$ 71,963 0 42,897 0
Dollars 644,011 0 692,722 0
Euros 0 0 259,918 0
Other currencies 0 0 0 0
Sundry Creditors Non-adjust. Ch$ 55 0 0 0
Dollars 0 0 0 0
Docts and accts payable to rel co. Adjust. Ch$ 13,776 0 277,753 6.80
Non-adjust. Ch$ 0 0 0 0
Dollars 303,606 0 0 0
Provisions Adjust. Ch$ 158,413 0 0 0
Non-adjust. Ch$ 144,197 0 129,413 0
Dollars 1,169,685 0 2,749,643 0
Argentinian Pesos 0 0 0 0
Euros 0 0 0 0
Other currencies 0 0 0 0
Withholdings Non-adjust. Ch$ 0 0 0 0
Argentinian Pesos 0 0 0 0
Prepaid income Non-adjust. Ch$ 0 0 0 0
Other Current Liabilities Non-adjust. Ch$ 0 0 0 0
Total Current Liabilities Adjust. Ch$ 1,425,198 - 5,454,841 -
Dollars 5,042,851 - 7,855,398 -
Other currencies 3,160 - 0 -
Non-adjust Ch$ 144,252 - 130,517 -
Euros 0 - 259,918 -
Argentinian Pesos 0 - 0 -
82
CRISTALERIAS DE CHILE S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES CURRENT PERIOD
06-30-2002
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 39,317,142 3.375 9,829,287 3.375
Financial Institutions Dollars 3,462,752 3.29 0 0
Sundry creditors Dollars 777,335 11.06 133,516 11.06
Obligations with Banks and Other Currency 27,395 3.22 16,405 3.22
Financial Institutions Adjustable Ch$ 4,414,041 4.44 1,449,003 4.44
Obligations with the public Adjustable Ch$ 0 0 3,271,040 6.05
Long-term creditors Dollars 78,685 0 0 0
Adjustable Ch$ 58,089 0 0 0
Sundry creditors Adjustable Ch$ 2,353 7 1,176 7
Dollars 246,664 11 5,799 11
Notes payable Adjustable Ch$ 45,968 0 0 0
Long-term provisions Dollars 3,545,829 0 0 0
Adjustable Ch$ 3,594,255 0 0 0
Deferred taxes Non-adjust. Ch$ 2,592,495 0 0 0
Total long-term liabilities Dollars 47,428,407 - 9,968,602 -
Other Currency 27,395 - 16,405 -
Adjustable Ch$ 8,114,706 - 4,721,219 -
Non-adjust. Ch$ 2,592,495 - 0 -
83
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES CURRENT PERIOD
06-30-2002
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 Dollars 0 0 0 0
Sundry creditors Dollars 0 0 0 0
Obligations with Banks and Other Currency 1,678 3.22 0 0
Financial Institutions Adjustable Ch$ 0 0 0 0
Obligations with the public Adjustable Ch$ 0 0 16,355,200 6.05
Long-term creditors Dollars 0 0 0 0
Adjustable Ch$ 0 0 0 0
Sundry creditors Adjustable Ch$ 0 0 0 0
Dollars 0 0 0 0
Notes payable 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
Total long-term liabilities Dollars 0 - 0 -
Other Currency 1,678 - 0 -
Adjustable Ch$ 0 - 16,355,200 -
Non-adjust. Ch$ 0 - 0 -
CRISTALERIAS DE CHILE S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES PERIOD PREVIOUS TO
06-30-2001
ITEM Currency 1-3 Years 3-5 Years
---- -------- -------------------------- ----------------------------
Amount Average Amount Average
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
-------- ------------- -------- -------------
Obligations with banks Dollars 36,697,657 489 27,523,243 489
and financial institutions Dollars 5,032,852 505 1,226,270 505
Adjustable Ch$ 575,278 180 564,442 180
Documents payable Adjustable Ch$ 25,969 0 0 0
Obligations with public Adjustable Ch$ 0 0 3,707,076 0
Sundry creditors Adjustable Ch$ 24,128 7 21,685 7
Dollars 723,314 1106 849,173 1106
Dollars 114,049 0 0 0
Adjustable Ch$ 59,964 0 0 0
Dollars 132,205 11 197,665 0
Long-Term provisions Dollars 4,077,761 0 0 0
Adjustable Ch$ 3,543,420 0 0 0
Deferred taxes Non-Adj. Ch$ 722,460 0 0 0
Total long-term liabilities Dollars 46,777,838 - 29,796,351 -
Adjustable Ch$ 4,228,759 - 4,293,203 -
Non-Adj. Ch$ 722,460 - 0 -
CRISTALERIAS DE CHILE S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES PERIOD PREVIOUS TO
06-30-2001
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 Dollars 0 0 0 0
Adjustable Ch$ 285,923 0 0 0
Documents payable Adjustable Ch$ 0 0 0 0
Obligations with public Adjustable Ch$ 2,011,353 0 14,296,073 0
Sundry creditors Adjustable Ch$ 0 0 0 0
Dollars 0 0 0 0
Dollars 0 0 0 0
Adjustable Ch$ 0 0 0 0
Dollars 0 0 0 0
Long-Term provisions Dollars 0 0 0 0
Adjustable Ch$ 0 0 0 0
Deferred taxes Non-Adj. Ch$ 0 0 0 0
Total long-term liabilities Dollars 0 - 0 -
- Adjustable Ch$ 2,297,276 - 14,296,073 -
Non-Adj. Ch$ 0 - 0 -
84
38. PENALTIES
The SVS and other administrative authorities have not imposed any penalties
during the 2002 and 2001 fiscal years.
85
39. SUBSEQUENT EVENTS
At of July 16, 2002 a provisional dividens N(degree)150 of Th Ch$15 for
action, was paid by the company and was approved by Board of Directors on June
25, 2002.
At of August 14, 2002 an issue bonds for UF 4,100,000 , to the coupon
unmaterialize, was put throught the stock exchange, this was registered in the
Register of SVS with the N(degree) 296 on July 9, 2002 and subsequently was
modified by Certificate at of August 12, 2002.
The issue bonds series C which are to 6 years, was of UF 2,000,000 with rate
of 4.75% per year, and the issue bonds series D , which are to 21 years, was
of UF 2,100,000 with rate of 5.8% per year.
The final amount obtained in the investment in stock exchange reached of UF
3,937,063 which reprensent 96.03% of the issue had being put the bonds in the
series C to the cash rate of 5.3% an d the bonds of the series D to the cash
rate of 6.5%. The difference between the amount of issue and the securities
recovered , more the expenses incured in the issue, will be amortized in the
term of payment of the respective issues.
86
40. ENVIRONMENT
ENVIRONMENT
The company is permanently committed with environment preservation.
During the first quarter of 2002 the parent company carried investments of Th
Ch$181,326 corresponding mainly to the repair of an electrostatic pre ipitator
to filter the gases discharged from smelting processes. This makes it possible
for the company to ensure that is fulfills particulate matter discharge
standards issued by the controlling agencies.
The subsidiary S.A. Vina Santa Rita has invested Th Ch$7,036 in the January -
June, 2002 period to comply with the ordinances and laws related to Industrial
Process and Installations.
87
41. TIME DEPOSITS
As of June 30, 2002 and 2001 the company presents the following information:
INSTITUTION CURRENCY 2002 2001
Th$ Th$
-------- --------- ----------
Banco de Santiago US$ 5,071,858 2,762,890
Banco de Credito e Inversiones US$ 6,019,533 4,078,888
Banco Bilbao Viscaya N.Y. US$ 0 2,629,092
Banco Santander N.Y. US$ 0 12,936,870
Banco Scotiabank US$ 3,699,351 0
Banco Santander US$ 4,022,126 0
Banco Edwards UF 30,224 0
Banco de Chile UF 447,233 2,809,352
Banco de Santiago $ 1,098,629 3,837,228
Banco de Chile $ 0 5,463,481
Banco de Chile $ 1,022,837 341,202
---------- ----------
TOTAL 21,391,791 34,859,003
========== ==========
88
42. STOCK TRANSACTIONS
During the 2002 and 2001 fiscal years members of the board, controlling
stockholders, related individuals and entities carried out stock transactions.
In the fiscal years 2001 were carried out the following transactions:
2002 2001
---- -----
INSTITUTION Purchases Sales Purchases Sales
----------- --------- ----- --------- -----
Tjhe Bank of New York 0 0 104,439 2,398,359
89
43. DISTRIBUTION OF SHAREHOLDERS
The distribution of stockholders as of June 30, 2002 and 2001 is the following:
% of Shareholding No. of Shareholders
----------------- -------------------
TYPE OF SHAREHOLDER 2002 2001 2002 2001
---- ---- ---- ----
10% or more shareholding 34.03 34.03 1 1
Less than 10% shareholding
with investment equal to or
higher than 200 UF 65.81 65.80 250 246
Less than 10% shareholding
with investment lower than
200 UF 0.16 0.17 826 855
TOTAL 100.00 100.00 1,077 1,102
CONTROLLER OF
THE COMPANY 52.14 52.14 3 3
90
44. REMUNERATIONS OF THE BOARD OF DIRECTORS
During the first quarter of 2002 and 2001, the Company and the subsidiary S.A.
Vina Santa Rita paid for allowances, honoraries and participation in profits
to the Board the sum of Th Ch$866,881 and Th Ch$827,079 respectively as
follows:
2002 2001
ThCh$ ThCh$
----------- -----------
Share of previous fiscal year profits 855,944 818,834
Allowance for assistance to meetings 4,085 3,714
Allowance for Directors Committee 1,003 857
Honoraries for services appointed by the Board 5,849 3,674
----------- -----------
TOTAL 866,881 827,079
=========== ===========
On the other hand, Th Ch$224,804 have been provisioned for the participation
in profits of year 2002 (Th Ch$419,331 in 2001).
CRISTALERIAS DE CHILE S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2002 AND 2001
1.- CONSOLIDATED FINANCIAL INDICATORS
06-30-2002 06-30-2001 12-31-2001
---------- ---------- ----------
LIQUIDITY
Current liquidity times 2.01 2.60 2.38
Acid ratio times 1.35 1.80 1.73
DEBT
Debt ratio times 0.89 0.72 0.68
Short-term debt % 34.5 31.1 34.7
Long-term debt % 65.5 68.9 65.3
Coverage of interest expenses times 3.97 3.48 4.07
ACTIVITY
Total assets Mill Ch$ 404,809 390,449 395,631
Investments Mill Ch$ 12,176 34,198 33,994
Disposal of property Mill Ch$ 35 2,416 2,402
Inventory turnover times n.a. n.a. n.a.
Inventory permanence days n.a. n.a. n.a.
RESULTS
Operating income Mill Ch$ 68,792 65,362 142,780
Operating costs Mill Ch$ 41,271 42,196 87,987
Operating results Mill Ch$ 16,454 12,653 32,780
Financial expenses Mill Ch$ 2,412 3,730 6,973
Non-operating results Mill Ch$ (8,135) (1,882) (8,496)
R.A.I.I.D.A.I.E. Mill Ch$ 16,398 19,083 40,435
After-tax profit Mill Ch$ 3,572 9,144 17,877
RATE OF RETURN
Return on equity % 1.7 4.4 8.5
Return on assets % 0.9 2.4 4.7
Return on operating assets % 7.6 6.0 15.7
Profit per share $ 55.8 142.9 279.3
Return on dividends % 3.7 3.2 3.1
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 2002 fiscal year indicators are:
LIQUIDITY INDICES
There is a reduction in the liquidity index in relation to 2001 because of the
transfer of long-term syndicated loan installments to short-term, due to the
increase in provisions. The reduction of the liquidity index has also been
influenced by the investment in bonds, which is registered in others long-term
fixed assets.
INDEBTEDNESS INDICES
The leverage ratio and the short and long-term debt distribution ratio show
changes, which may be explained by the aforementioned reasons.
The interest expenses coverage ratio fell with respect to December of the
previous year due to lower profits. However, this ratio rose compared to that
of June 2001 due to lower interest expenses in the first half of 2002.
PROFITABILITY INDICES
These indices fell because of the decrease in profits during the first half of
the year.
On the other hand, despite dividends distributed between July 2000 and June
2001 increased by 3% compared with dividends distributed for the July
2001/June 2002 period, the dividends' rate of return increased during this
half of the year due to the drop in the share price in the stock market, which
fell from Ch$4,090 per share as of June 30, 2001, to Ch$3,801 per share as of
June 30, 2002.
2. DIFFERENCE BETWEEN BOOK VALUE AND MARKET VALUE OF MAIN ASSETS.
The financial statements as of June 30, 2002 have been prepared according to
generally accepted accounting principles and general and specific norms of the
Chilean Securities and Insurance Commission (SVS), 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 June 30, 2002 there were financial investments in shares registered
according to their purchase price at Ch$3,644 million, and whose market value
on the same date was Ch$6,022 million.
3. RESULTS FOR THE FIRST HALF OF 2002
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. Since the second quarter of 2001, the company does not consolidate its
results with Envases CMF S.A. (formerly Crowpla-Reicolite S.A.). On the other
hand, on September 27, 2001, stocks of Ediciones Chiloe and Ediciones
Financieras were sold to Recoletos Chile Ltda. (Financial Times), leaving
CIECSA with a 50% stake in Ediciones Chiloe. As of that date CIECSA no longer
consolidates its financial statements with Ediciones Financieras S.A. ("El
Diario").
As of June 30, 2002, the Company's net profit was Ch$3,572 million compared
with $9,144 million in 2001. This is due to a higher non-operating loss of
$8,135 million, compared with a $1,919 million loss in 2001. During 2001, the
Company had an extraordinary income corresponding to the sale of shares of CGE
for Ch$2,906 million, and Ch$2,002 million for the valuation of the Company's
investment in the association between Crowpla-Reicolite and Multipack. In
addition, in 2002 the Company registered a higher net loss from subsidiaries
that reached $2,397 million, mainly due to the effect of the devaluation in
Argentina for the Company's investment in Rayen Cura, applying an exchange
rate of 3.8 Argentine Pesos per US Dollar. On the other hand, during the first
half of 2001 the Company's net profit was increased by an extraordinary income
of $1,823 million corresponding to the reverse of a maintenance provision for
Furnace C in Cristalchile, which was included in "Extraordinary Items". On the
other hand, during the first half of 2002 the operating income increased by
Ch$3,696 million, from Ch$12,758 million in 2001, to Ch$16,454 million in the
present year.
As of June 30, 2002, Cristalerias' consolidated sales reached Ch$68,792
million, a 7.6% increase compared to the previous period, and adjusting for
the non-consolidation of Crowpla-Reicolite and Ediciones Financieras during
the period.(*) The consolidated sales increase in Cristalerias results from
higher sales in the glass business (1.4%), Santa Rita (9.9%) and CIECSA
(41.8%). The consolidated operating income reached Ch$16,454 million, which
represents a 29.0% increase, adjusting the operating profit of 2001 by Ch$105
million, corresponding to the loss generated by Ediciones Financieras during
the period. Of the total operating income, the glass business accounted for
Ch$9,975 million, Santa Rita Ch$4,703 million and CIECSA Ch$1,722 million.
The individual result of Cristalerias de Chile S.A. and its main subsidiaries
is analyzed in greater detail below.
3b. Individual Result
As of June 2002, the Company had individual sales of Ch$30,382 million, a 1.4%
increase compared with 2001. Sales Volume increased by 0.6%, reaching 108,080
tons. This higher sales volume is mainly due to higher sales of bottles for
the wine and non-returnable beer markets.
Operating profit rose by 7.8% reaching Ch$9,975 million. The operating margin
increased due to lower sales of imported products with a lower margin during
2002.
The Company's net profit was Ch$3,572 million in 2002 compared to Ch$9,144
million in 2001. This result can be explained partly by a decrease in the
non-operating results, which passed from a loss of $46 million in 2001 to a
loss of $4,332 million in 2002. During 2001, the Company recorded
extraordinary income corresponding to the sale of shares of CGE, and the
valuation of the Company's investment in the association between
Crowpla-Reicolite and Multipack. In addition during 2002 the Company had a
higher non operating loss from the effect of the devaluation of the Argentine
Peso (from $1.7 to $3.8 Argentine Pesos per US Dollar) in Rayen Cura, that
reached $2,424 million. This was partially offset by better results in Vina
Santa Rita and CIECSA. It is worth noting that during 2001 the Company had an
extraordinary income corresponding to the reverse of a maintenance provision
for Furnace C, which was included as "extraordinary items".
3c. Result in Subsidiaries
As of June 30, 2002, Santa Rita's net profit reached Ch$4,147 million, which
represents a 51.5% increase over the same period in 2001. In the local market,
Santa Rita reached volumes that were 19.0% higher than in 2001. Prices in this
market fell by 18.0% in real terms, as a result of increased competition and
lower costs of musts, which led to a 3% sales decrease in this market. Sales
in the export market increased by 12.5% in volume terms due to lower sales to
the European and Latin American markets. During the period, exports
represented 52.6% of total sales in the amount of US$25.2 million. The
operating income increased by 21.2%, totaling Ch$4,703 million, mainly as a
result of the increase in prices in the local market and an increase in
volumes in the export market. The average price in dollars per case for the
export market was US$30.5 whereas the average for the industry was US$22.23
per case. As of June 2002, Santa Rita registered a non-operating profit of
Ch$311 million, compared with a loss of Ch$496 million in 2001. This is mainly
explained by lower financial costs.
-------------
(*) As of Jun 30, 2001 the sales of Ediciones Financieras totaled
Ch$1,432 million.
Megavision, CIECSA's main subsidiary reached an operating income of Ch$1,716
million, compared to a loss of Ch$397 million in 2001. Megavision reached a
24.6% audience share during the period. Net sales increased by 40.1%, reaching
Ch$9,594 million, due to an increase in live programming. As of June 2002,
Megavision reached a net profit of Ch$507 million, compared with a loss of
Ch$916 million in 2001. CIECSA's final result was a profit of Ch$308 million
compared with a loss of Ch$909 million in 2001.
Envases CMF S.A. registered net loss of Ch$403 million in 2002 compared with a
profit of Ch$128 million in 2001. Sales increased by 114% during the period,
totaling Ch$14,835 million. It is worth noting that this significant increase
in sales is mainly due to the association with Multipack at the end of June
2001. Sales volumes increased by 97%, totaling 10,643 tons. The operating
income reached Ch$718 million, which is 43% higher than in the previous year.
On the non-operating side Envases CMF passed from a loss of Ch$352 million in
2001 to a loss of Ch$1,188 million in 2002. It is worth mentioning that the
higher loss is mainly due to increase of interest expenses corresponding to
the financing obtained of the joint venture of Crowpla-Reicolite with
Multipack.
In cable TV area, Cristalchile Comunicaciones S.A. (99.99% subsidiary of
Cristalerias), is the owner of 50% of Cordillera Comunicaciones Ltda., which
is in turn the owner of 99% of Metropolis-Intercom S.A.
Metropolis-Intercom S.A. reached sales of Ch$22,538 million during 2002
compared with Ch$22,303 million during 2001. As of June 2002,
Metropolis-Intercom had a net loss of Ch$7,582 million compared with a loss of
Ch$7,277 million in 2001. This result includes a depreciation charge of
Ch$5,484 million (Ch$5,317 million in 2001) corresponding to the HFC network
acquired in July 2000. The company ended the period with 239,000 subscribers,
a 14.6% decrease compared to the same date in 2001, due to the deteriorated
domestic economic situation.
As a result of the aforementioned and the negative goodwill amortization in
Cordillera Comunicaciones of $2,010 million in 2002 ($1,997 million in 2001),
Cristalchile Comunicaciones registered a $4,806 million net loss ($4,604
million loss in the first half of 2001).
4. CASH FLOW STATEMENT
During the first half of 2002 a total net positive flow of Ch$7,258 million
was generated, which is explained by a Ch$18,492 million positive flow
generated by operating activities, which were partially offset by a negative
financing flow of Ch$9,097 million, and a negative flow of investment
activities of Ch$2,137 million.
The operating flow corresponds basically to the collection of sales
receivables and financial interests and other income received, which were
partially reduced by payables to suppliers, taxes and interests.
The negative financing flow can be explained mainly by a net increase in loans
from related companies of $316 offset by a reduction in loans of $1,308
million, and dividends paid that reached $7,077 million.
The investment flow is mainly explained by the incorporation of fixed assets
(CAPEX) of Ch$8,963 million, and permanent investments for Ch$3,768 million
and others investments for Ch$701 million, which are financed with the net
redemption of Time Deposits for over 90 days for $11,255 million.
The aforementioned resulted in an increase in the final balance of cash and
cash equivalent, which passed from Ch$38,002 million as of December 31, 2001
to $45,385 million as of June 30, 2002.
According to the current regulations of the SVS and the Association of
Accountants of Chile, time deposits and agreements for less than 90 days have
been considered as cash and cash equivalent.
5. INTEREST RATES AND EXCHANGE RATE RISK 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 liabilities. As of June 30,
2002 short-term and long-lerm bank liabilities and obligations with the public
totaled Ch$103,871 million, which represents 25.7% of the Company's
consolidated assets.
On the other hand, bank credits total Ch$83,785 million, Ch$76,109 million of
which correspond to credits in foreign currency at variable rates related to
the six-month LIBOR, Ch$6,625 million correspond to credits in Pesos
adjustable in unidades de fomento (indexed currency units) that are exposed to
changes in the six-month TAB rate, and Ch$1,003 million correspond to credits
in Pesos at an annual rate of 4.68% and Ch$48 million correspond to credits in
Argentinean Pesos.
Obligations with the public of Ch$20,086 million correspond to coupon Bonds
issued by the subsidiary Vina Santa Rita at a fixed interest rate.
In addition, as of June 30, 2002, the Company had available funds of Ch$53,184
million invested in instruments with different tenors, like term deposits,
bonds, fixed-rate mutual funds and resale agreements.
The Company and its subsidiaries do not use secondary financial instruments at
the present time to reduce risk in the event of fluctuations in interest
rates. This policy will be permanently studied to evaluate the different
alternatives offered by the market.
b) Exchange risk.
The Company and its Subsidiaries maintain liabilities in Dollars of US$128.4
million, which represent 21.8% of its consolidated assets, and include a
long-term syndicated loan of US$100 million in the parent company and
long-term bank credits in Vina Santa Rita of US$9.5 million. As of June 30 the
Company and its Subsidiaries have investments in Dollars of US$51 million in
time deposits, bonds and fixed rate mutual funds. It also has Dollar future
contracts of US$139.8 million, and a contract that provides coverage for
EURO/Dollar fluctuations for 3.5 million Euros, all of which provides a
reasonable coverage for exchange rate variations risk.
RELEVANT EVENTS
There are no relevant events in this period.
ECU (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 1/1/2002
1.00.01.21 Closing date 6/30/2002
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: Chilean pesos
1.00.01.40 Type of Balance : Individual
ASSETS NOTE No. 06-30-02 06-30-01
5.11.00.00 TOTAL CURRENT ASSETS 59,198,752 59,024,082
5.11.10.10 Cash 959,111 291,970
5.11.10.20 Time deposits 40 14,790,742 22,407,740
5.11.10.30 Marketable securities (net) 4 10,356,038 3,274,874
5.11.10.40 Debtors from sales (net) 5 13,485,303 13,751,936
5.11.10.50 Documents receivable (net) 5 3,247,684 1,979,230
5.11.10.60 Sundry debtors (net) 5 540,309 435,018
5.11.10.70 Doc. & accts receivable 6 2,503,599 3,442,877
related Co.
5.11.10.80 Inventories (net) 7 6,111,810 6,225,747
5.11.10.90 Recoverable taxes 8 156,839 660,599
5.11.20.10 Prepaid expenses 239,117 59,465
5.11.20.20 Deferred taxes 8 706,946 372,236
5.11.20.30 Other current assets 10-11 6,101,254 6,122,390
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 72,682,802 73,626,112
5.12.10.00 Land 12 1,455,323 1,503,970
5.12.20.00 High rises & infrastructure 12 17,055,663 17,145,772
5.12.30.00 Machinery & equipment 12 91,595,238 85,852,583
5.12.40.00 Other fixed assets 12 10,776,810 8,878,969
5.12.50.00 Positive goodwill from
technical evaluation of fixed 12 8,336,157 8,342,060
assets
5.12.60.00 Depreciation (minus) 12 (56,536,389) (48,097,242)
5.13.00.00 TOTAL OTHER ASSETS 174,380,347 161,828,694
5.13.10.10 Investment in related companies 14 137,856,652 151,144,403
5.13.10.20 Investment in other companies 0 0
5.13.10.30 Negative goodwill 16 2,078,863 7,555,700
5.13.10.40 Positive goodwill (minus) 0 0
5.13.10.50 Long-term debtors 5 176,836 106,159
5.13.10.60 Doc. & accts receivable 6 24,710,102 2,222,018
related Co.
5.13.10.65 Long-term deferred taxes 0 0
5.13.10.70 Intangibles 17 0 2,627
5.13.10.80 Amortization (minus) 0 0
5.13.10.90 Other 18 9,557,894 797,787
5.13.20.10 Long-term leasing contracts
(net)
5.10.00 TOTAL ASSETS 306,261,901 294,478,888
-2-
LIABILITIES
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance : Individual
LIABILITIES NOTE No. 06-30-02 06-30-01
5.21.00.00 TOTAL CURRENT LIABILITIES 33,417,782 11,946,006
5.21.10.10 Short-term oblig. Banks & 0 0
Fin. Inst.
5.21.10.20 Short-term portion - Long-term
oblig. Banks & 19 20,348,771 149,274
Financial Institutions
5.21.10.30 Obligations with the public 0 0
(notes)
5.21.20.40 Short-term portion oblig with 0 0
public
5.21.10.50 Long-term oblig. due within 1 0 0
year
5.21.10.60 Dividends payable 536,033 714,733
5.21.10.70 Accounts payable 1,894,684 2,133,078
5.21.10.80 Notes payable 2,160,037 3,534,936
5.21.10.90 Sundry creditors 463,847 367,471
5.21.20.10 Notes & accts payable related 6 675,884 809,496
Co.
5.21.20.20 Provisions 23 6,139,193 3,519,479
5.21.20.30 Withholdings 813,077 717,539
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 20 386,256 0
5.22.00.00 TOTAL LONG-TERM LIABILITIES 58,672,144 73,760,730
5.22.10.00 Oblig with Banks & Financial 21 49,146,429 64,220,900
Inst.
5.22.20.00 Long-term oblig with public 0 0
(bonds)
5.22.30.00 Long-term notes payable 0 0
5.22.40.00 Long-term sundry debtors 968,940 1,632,450
5.22.50.00 Long-term notes & accts.
payable related companies 6 0 0
5.22.60.00 Long-term provisions 7,140,084 7,621,181
5.22.70.00 Long-term deferred taxes 8 1,416,691 286,199
5.22.80.00 Other long-term liabilities 0 0
5.23.00.00 MINORITY INTEREST 0 0
5.24.00.00 TOTAL EQUITY 214,171,975 208,772,157
5.24.10.00 Paid-in capital 26 62,863,356 62,253,624
5.24.20.00 Reserve capital revaluation 26 377,180 933,806
5.24.30.00 Premium in sale of own shares 26 26,955,324 26,932,687
5.24.40.00 Other reserves 26 9,133,407 7,670,451
5.24.50.00 Retained earnings (addition
of codes 5.24.51.00 to 26 114,842,708 110,981,584
5.24.56.00)
5.24.51.00 Reserve 26 112,231,045 103,307,766
future dividends
5.24.52.00 Accrued 26 0 0
profits
5.24.53.00 Accrued 0 0
losses (minus)
5.24.54.00 Profit 26 3,571,663 9,144,215
(loss) for the year
5.24.55.00 Prov. (960,000) (1,377,713)
dividends (minus)
5.24.56.00 Accr. 26 0 (92,684)
deficit dev. period
5.20.00.00 TOTAL LIABILITIES 306.261.901 294,478,888
-3-
INCOME STATEMENT
2.02 INCOME STATEMENT
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance : Individual
INCOME STATEMENT NOTE No. 06-30-02 06-30-01
5.31.11.00 OPERATING RESULTS 9,975,009 9,251,371
5.31.11.10 Operating Margin 12.271.583 11.632.337
5.31.11.11 Operating 30.382.171 29.964.769
income
5.31.11.12 Operating (18,110,588) (18,332,432)
costs (minus)
5.31.11.20 Adm. & sales expenses (2,296,574) (2,380,966)
(minus)
5.31.12.00 NON-OPERATING RESULTS (4,332,181) 45,635
5.31.12.10 Interest income 851,170 1,088,816
5.31.12.20 Profit investments 14 2,546,021 1,731,548
related Co.
5.31.12.30 Other non-operating 27 256,077 5,141,658
income
5.31.12.40 Profit investments (7,433,678) (5,510,299)
rel- Co. (-)
5.31.12.50 Amortization 16 (82,880) (362,221)
neg.goodwill (-)
5.31.12.60 Interest expenses (1,338,126) (2,196,647)
(minus)
5.31.12.70 Other non-operat 28 (356,053) (255,419)
expenses (-)
5.31.12.80 Price level 29 (288,207) 428,199
restatement
5.31.12.90 Exchange differences 30 1,513,495 (20,000)
5.31.10.00 RESULTS BEFORE INCOME TAX 5,642,828 9,297,006
AND EXTRAORDINARY ITEMS
5.31.20.00 INCOME TAX 8 (2,071,165) (1,975,352)
5.31.30.00 EXTRAORDINARY ITEMS 0 1,822,561
5.31.40.00 PROFIT (LOSS) BEFORE 3,571,663 9,144,215
MINORITY INTEREST
5.31.50.00 MINORITY INTEREST 0 0
5.31.00.00 NET PROFIT (LOSS) 3,571,663 9,144,215
5.32.00.00 Amortization of positive goodwill 0 0
5.30.00.00 PROFIT (LOSS) FOR THE YEAR 3,571,663 9,144,215
-4-
DIRECT CASH FLOW STATEMENT
2.03 CASH FLOW STATEMENT
1.00.01.30 Type of Currency: Chilean pesos
1.00.01.40 Type of Balance : Individual
DIRECT CASH FLOW STATEMENT NOTE No. 06-30-02 06-30-01
5.41.11.00 NET FLOW FROM OP. ACT. 15,806,590 15,759,698
5.41.11.10 Collection from sales debtors 39,030,134 38,216,842
5.31.11.20 Interests received 1,834,969 1,468,785
5.31.11.30 Dividends & other distributions 1,299,713 1,215,216
funds received
5.31.11.40 Other income 298,690 2,037
5.31.11.50 Payments to suppliers & (22,354,881) (20,754,073)
personnel (-)
5.31.11.60 Interest paid (minus) (500,843) (1,941,968)
5.31.11.70 Income tax paid (minus) (689,240) (1,714,296)
5.31.11.80 Other expenses (469,588) (612,565)
5.31.11.90 V.A.T. & other taxes ((2,642,364) (120,280)
5.41.12.00 CASH FLOW FINANCING ACTIVITIES (6,092,020) (5,853,278)
5.41.12.05 Proceeds from share issue
5.41.12.10 Loans received
5.41.12.15 Obligations with the public
5.41.12.20 Secured loans from related
companies
5.41.12.25 Other loans from related
companies
5.41.12.30 Other financing resources
5.41.12.35 Dividends paid (minus) (6,072,585) (5,782,047)
5.41.12.40 Capital distributions (minus)
5.41.12.45 Repayment of loans (minus) (18,954) (16,803)
5.41.12.50 Payment of obligations with the
public (-)
5.41.12.55 Repayment of secured loans from
rel Co. (-)
5.41.12.60 Repayment other loans from
related Co. (-)
5.41.12.65 Share issue payment (minus)
5.41.12.70 Payment of issue publ oblig
(minus)
5.41.12.75 Other financing payments (minus) (481) (54,428)
5.41.13.00 CASH FLOW FROM INVESTING ACTIVITIES 384,499 (31,355,514)
5.41.13.05 Sale of fixed assets 5,708 613,872
5.41.13.10 Sale of permanent investments
5.41.13.15 Sale of other investments 10,748,618 9,821,293
5.41.13.20 Proceeds secured loans to 42,208
related Comp.
5.41.13.25 Proceeds other loans to related 1,245,745
companies
5.41.13.30 Other investment income 1,432,598 524,544
5.41.13.35 Incorporation of fixed assets (5,807,892) (21,497,985)
(minus)
5.41.13.40 Capitalized interests payment
(minus)
5.41.13.45 Permanent Investments (768,892)
5.41.13.50 Investments in financial (1,538,111) (21,145,514)
instruments (minus)
5.41.13.55 Other loans to related companies (3,760,178) (149,602)
(minus)
5.41.13.60 Other loans to related companies (1,315) (855)
(minus)
5.41.13.65 Other distrib of funds on invest (694,929) (40,328)
activities (-)
5.41.00.00 TOTAL NET CASH FLOW FOR THE PERIOD 10,099,069 (21,449,094)
5.42.20.00 EFFECT OF INFLATION ON CASH & CASH EQUIV. (162,013) (118,840)
5.41.00.00 NET CHANGE IN & CASH EQUIVALENT 9,937,056 (21,567,934)
5.42.00.00 CASH & CASH EQUI AT BEGINNING OF PERIOD 18,626,034 24,523,903
5.43.00.00 CASH & CASH EQUIV BALANCE AT END OF PERIOD 28,563,090 2,955,969
-5-
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: Chilean pesos
1.00.01.40 Type of Balance : Individual
CASH FLOW - INCOME STATEMENT RECONCILIATION NOTE No. 06-30-02 06-30-01
5.50.10.00 Profit (Loss) for the year 3,571,663 9,144,215
5.50.20.00 Profit in sale of assets (22,505) (1,989,433)
5.50.20.10 (Profit) Loss in sale of fixed assets (22,505) 12,280
5.50.20.20 Profit in sale of investments (minus) (2,001,713)
5.50.20.30 Loss in sale of investments
5.50.20.40 (Profit) Loss in sale of other assets
5.50.30.00 Non-cash losses (gains) 11,623,244 6,859,519
5.50.30.05 Depreciation for the year 4,301,230 3,562,934
5.50.30.10 Amortization of intangibles 610,011 55,779
5.50.30.15 Write-offs and provisions 2,978,493 1,201,251
5.50.30.20 Accrued earnings from investments in (2,546,021) 1,731,548
related companies (minus)
5.50.30.25 Accured losses from investments in 7,433,678 5,510,299
related Co.
5.50.30.30 Negative goodwill amortization 82,880 362,221
5.50.30.35 Positive goodwill amortization (minus)
5.50.30.40 Price level restatement 288,207 428,199
5.50.30.45 Net exchange difference (1,513,495) 20,000
5.50.30.50 Other non-cash credits to results (minus) (15,915) (1,841,611)
5.50.30.55 Other non-cash debits to results 4,176 148,393
5.50.40.00 Changes in Assets affecting cash flow (incr) 1,577,369 (457,174)
decreases
5.50.40.10 Debtors from sales 962,393 354,297
5.50.40.20 Inventory 276,803 229,371
5.50.40.30 Other assets 338,173 582,100
5.50.50.00 Changes in liabilities affecting cash flow (943,181) 2,202,571
increases (decr)
5.50.50.10 Accounts payable related to results for (1,248,337) 795,551
the year
5.50.50.20 Interests payable 613,387 106,285
5.50.50.30 Income tax payable (net) 1,018,046 37,423
5.50.50.40 Other accounts payable related to (1,242,893) 1,383,711
non-oper results
5.50.50.50 VAT and other taxes payable (net) (83,384) (120,399)
5.50.60.00 Profit (Loss) of minority interest
5.50.00.00 NET OPERATING CASH FLOW 15,806,590 15,759,698
-6-
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 it is
supervised by the Securities and Insurance Commission.
-7-
02. Applied Accounting Criteria
APPLIED ACCOUNTING CRITERIA
a) Accounting Period
These financial statements correspond to the period between January 1 and June
30 of 2002 and 2001.
b) Preparation basis of financial statements:
These individual financial statements as of June 30, 2002 and 2001 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 profit of the fiscal year or
the net worth.
These financial statements have been issued only for purposes of making an
individual analysis of the company and, in consideration thereof, they 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 2001 fiscal year are presented updated according to
non-accounting terms as of June 30, 2002 by 2.1%.
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 2002 fiscal year, which was -0.6% (1.5% in 2001).
e) Conversion Basis
Balances in foreign currency and indexed currency units have been converted to
pesos at the indicated parities:
2002 2001
Ch$ Ch$
U.S. Dollar 688.05 629.00
Pound Sterling 1,052.71 888.92
Swiss Franc 464.80 350.63
EURO 681.41 534.23
Unidad de Fomento 16,355.20 16,002.32
f) Marketable Securities and Time Deposits
Transactions in fixed income instruments (PRC) are shown at the return value
of the investment, which does not exceed the market value as of June 30, 2002.
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.
-8-
g) Inventory
Inventory of finished products has been valued as of June 30, 2002 and 2001 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
The fixed assets are shown at purchase cost plus legal and regulatory
revaluations accumulated until June 30, 2002 and 2001.
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
At June 30, 2002 there are no intangibles; in the 2001 fiscal year there is a
balance for trademarks.
n) 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 (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 has 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.
Those values are amortized over a twenty-year period. At June 30, 2002 and 2001
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.
-9-
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) Operating income
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 companies do not show any expenses for this item.
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."
-10-
03. Accounting Changes
In the 2002 and 2001 period, there have not been any changes in the accounting
criteria that affect the individual financial statements.
-11-
04. Marketable Securities
At June 30, 2002 investments in stock are included in the amount of Th Ch$
3,644,054; Th Ch$ 6,521,246 in Mutual Funds and Th Ch$ 190,738 in interests
accrued for Bonds.
Note No. 18 provides detailed information about the Fixed Rate Instruments
classified in short and long term.
At June 30, 2001 investments in stock in the amount of Th Ch$ 3,274,874 have
been included.
CRISTALERIAS DE CHILE S.A.
NOTE 4 -MARKETABLE SECURITIES- BALANCE COMPOSITION
Type of Security Book Value
--------------- ---------------------------------
06-30-2002 06-30-2001
---------- ----------
Stock 3,644,054 3,274,874
Bonds 190,738 0
Mutual fund shares 6,521,246 0
Investment fund shares 0 0
Public tender promissory notes 0 0
Mortgage bonds 0 0
Total Marketable Securities 10,356,038 3,274,874
-12-
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - SHARES
Unit Market
R.U.T. Company Name Number of Share Market Investment Corrected
Shares Percentage Value Value Cost
------------ ------------------------------------- --------- ---------- ------ ---------- ---------
96.512.200-1 Bodegas y Vinedos Santa Emiliana S.A. 59,627,851 9.3690 101 6,022,413 3,644,054
Value Investment Portfolio 6,022,413 3,644,054
Adjustment Reserve 0
Book value, Investment Portfolio 3,644,054
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - MUTUAL FUNDS
Date Capital Placed Interests Accrued Current Placement
------------------------ Anual ----------------------- ----------------- ----------------------
Institution Starting Maturity Rate US$ M$ US$ M$ US$ M$
------------- ---------- ---------- ----- --------- --------- ------ ------ --------- ---------
JP MORGAN AL 01.01.2002 07.30.2002 1.70 9,458,036 6,507,602 19,830 13,644 9,477,866 6,521,246
Total 6,521,246
-13-
05. Short-Term and Long-Term Debtors
At June 30, 2002 and 2001 there are balances of short-term debtors of Th Ch$
17,273,296 (Th Ch$ 16,166,184 in 2001).
There is also a balance of Th Ch$ 176,836 for Long-Term debtors in 2002 (Th
Ch$ 106,159 in 2001).
At June 30 2002 and 2001 the company has established a reserve for bad debts of
Th Ch$ 128,313 in 2002 (Th Ch$ 131,008 in 2001), which is deducted from
Debtors for Sales.
The balance of Short-term Debtors is shown net the reserve for bad debtors and
customer advances.
-15-
CRISTALERIAS DE CHILE S.A.
NOTE 5 -SHORT AND LONG TERM DEBTORS
Current Assets
Over 90 days Long Term
Area Up to 90 days up to 1 year Total Assets (net)
---------------------------- --------------------- --------------------- Subtotal --------------------- ---------------------
06-30-2002 06-30-2001 06-30-2002 06-30-2001 06-30-2002 06-30-2001 06-30-2002 06-30-2001
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Debts from Sales 13,251,275 12,542,360 362,341 1,209,576 13,613,616 13,485,303 13,751,936 0 0
Estimate of non-collectable
debt - - - - 128,313 0 0 0 0
Documents receivable 2,737,922 1,940,297 509,762 38,933 3,247,684 3,247,684 1,979,230 0 0
Estimate of bad debtors - - - - 0 0 0 0 0
Misc. debtors 534,812 395,302 5,497 39,716 540,309 540,309 435,018 176,836 106,159
Estimate of bad debtors - - - - 0 0
Total Long Term Debtors 176,836 106,159
-16-
06. Balances and Transactions with related entities
I.- Balances receivable in the Short-Term as of June 30, 2002 and 2001 are
composed of Th Ch$ 2,503,599 and Th Ch$ 3,442,877. In the Long-Term a balance
is recorded of Th Ch$ 24,710,102 and Th Ch$ 2,222,018, respectively, which
correspond to Th Ch$ 22,207,757 in 2002 for the sale of Rayen Cura S.A.I.C.
stocks to the subsidiary Cristalchile Inversiones S.A., equivalent to UF
1,357,841, which are payable within a maximum term of two years as of December
28, 2001, without interests and Th Ch$ 2,502,345 in 2002 (Ch$ 2,222,018 in
2001), 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 6.36%, UF adjustability
05.01.2003 17,000 UF Th Ch$ 278.039
05.07.2003 17,000 UF Th Ch$ 278.038
05.01.2004 17,000 UF Th Ch$ 278.038
05.07.2004 17,000 UF Th Ch$ 278.038
05.01.2005 17,000 UF Th Ch$ 278.038
05.07.2005 17,000 UF Th Ch$ 278.038
05.01.2006 17,000 UF Th Ch$ 278.039
05.07.2006 17,000 UF Th Ch$ 278.039
05.01.2007 17,000 UF Th Ch$ 278.039
05.07.2007 17,000 UF Th Ch$ 278.038
2) Loan to Cristal Chile Comunicaciones S.A.
UF adjustability
06.30.2002 842.292 UF Th Ch$ 13,776
3) There are balances for invoicing of Sales of bottles and services with the
following related companies with expiration under 90 days:
Th Ch$
S.A. Vina Santa Rita 2,130,511
Vina Los Vascos S.A. 81,090
Rayen Cura S.A. 183
Total 2,211,784
II.- Balances Payable in the Short-Term are in the amount of Th Ch$ 675,884 in
2002 and Th Ch$ 809,496 in 2001, which correspond to Dividend payable for Th
Ch$ 500,864 in 2002, (Th Ch$ 715,527 in 2001) and the balance for Commercial
Transactions under 90 days.
For invoicing there are accounts payable of related companies for the
following balances with expirations under 90 days:
Th Ch$
S.A. Vina Santa Rita 138,331
Servicios y Consultorias Hendaya S.A. 286
Vina Los Vascos S.A. 3,389
TOTAL 142,006
-18-
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCE AND TRANSACTIONS WITH RELATED COMPANIES
DOCUMENTS AND ACCOUNTS RECEIVABLE
Company
R.U.T. Short Term Long Term
-------------------------- --------------------------
06-30-2002 06-30-2001 06-30-2002 06-30-2001
---------- ---------------------------- ---------- ---------- ---------- ----------
86547900-K S.A. VINA SANTA RITA 2,130,511 1,640,580 0 0
79952350-7 RED TEL. MEGAVISION S.A. 278,039 555,505 2,502,345 2,222,018
87941700-7 VINA CARMEN S.A.0 0 278,553 0 0
96721580-5 CRISTACHILE COM. S.A. 13,776 12,102 0 0
79534600-7 VINA CENTENARIA S.A 0 13,271 0 0
83032100-4 SERV. Y CONS. HENDAYA S.A. 0 493 0 0
89150900-6 VINA LOS VASCOS S.A. 81,090 28,037 0 0
99999999-9 RAYEN CURA S.A. I.C. 183 7,599 0 0
96972440-5 CRISTALCHILE INVERSIONES S.A. 0 0 22,207,757 0
96767580-6 APOGER S.A. 0 906,737 0 0
TOTAL
2,503,599 3,442,877 24,710,102 2,222,018
-19-
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
------------------------- --------------------------
06-30-2002 06-30-2001 06-30-2002 06-30-2001
---------- ---------------------------- ---------- ---------- ---------- ----------
86547900-K S.A. VINA SANTA RITA 138,331 58,520 0 0
89150900-6 VINA LOS VASCOS S.A. 3,389 0 0 0
87941700-7 VINA CARMEN S.A. 0 28,624 0 0
96608270-4 CIECSA S.A. 23,331 6,629 0 0
96539380-3 EDICIONES FINANCIEROS S.A. 0 196 0 0
90320000-6 CIA. ELECTROMETALURGICA S.A. 326,700 466,985 0 0
96972440-5 CRISTALCHILE INVERSIONES S.A. 9,969 0 0 0
86755600-1 BAYONA S.A. 88,688 126,770 0 0
83032100-4 SERVICIOS Y CONSULTORIAS HENDAYA S.A. 85.476 121.772 0 0
TOTAL 675,884 809,496 0 0
-20-
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
TRANSACTIONS
03-31-2002 03-31-2001
----------------------- ------------------------
Description of Effect on Effect on
Company R.U.T. Relationship Transaction Amount Earnings Monto Earnings
-------------------- ---------- --------------- -------------- ---------- ----------- ----------- ------------
(Debit/Credit) (Debit/Credit)
ENVASES CMF S.A. 86881400-4 Affiliate 74 0 0 0
Affiliate 0 0 40,951 40,951
Affiliate 0 0 19,851 19,851
Affiliate 0 0 1,271,447 0
Affiliate 0 0 510,394 0
CRISTALCHILE 96721580-5 Subsidiary 0 0 3,300 0
COMUNICACIONES
Subsidiary 83 83 144 144
Subsidiary 0 0 249 249
S.A. VINA SANTA RITA 86547900-K Subsidiary 3,300,477 816,154 2,323,142 636,563
Subsidiary 0 0 2,899 2,899
Subsidiary 0 0 4,804 4,804
Subsidiary 328,718 -310 174,391 -2,283
Subsidiary 1,170,685 0 993,536 0
Subsidiary 46,137 30,572 28,647 11,746
SERV. Y CONS. HENDAYA 83032100-4 Controlling 503,933 -503,933 416,720 -416,720
S.A. stockholder
Controlling 545,786 0 525,182 0
stockholder
Controlling 9,660 9,660 10,267 10,267
stockholder
CIECSA S.A. 96608270-4 Subsidiary 0 0 411,766 0
Subsidiary 98 -98 80 -80
CIA. 90320000-6 Controlling 2,093,058 0 2,014,040 0
ELECTROMETALURGICA stockholder
S.A.
Controlling 823 0 1,047 0
stockholder
CLARO Y CIA. 79753810-8 With the Chairman 15,776 -15,776 6,949 -6,949
NAVARINO S.A. 96566900-0 Indirect 4,874 4,874 4,849 4,849
subsidiary
QUEMCHI S.A. 96640360-8 Indirect 4,874 4,874 4,849 4,8490
affiliate
Indirect 0 0 51.050 0
affiliate
Indirect 0 0 51.050 0
affiliate
Indirect 0 0 155 155
affiliate
VINA CENTENARIA S.A. 79534600-7 Indirect 0 0 15,307 4,194
subsidiary
Indirect 0 0 3.758 0
subsidiary
VINA CARMEN S.A. 87941700-7 Indirect 0 0 517,496 141,799
affiliate
Indirect 0 0 58,338 0
affiliate
RAYEN CURA S.A.I.C. 0-E Affiliate 0 0 22.085 7.119
Affiliate 183 0 0 0
CIA. SUDAMERICANA DE 90160000-7 Indirect 12,265 0 320,484 0
VAPORES S.A. affiliate
EDICIONES FINANCIERAS 96793770-3 Indirect 3,260 -3,260 4,725 -4,725
S.A. affiliate
BAYONA S.A. 86755600-1 Controlling stockholder 568,195 0 546,744 0
VINA LOS VASCOS S.A. 89150900-6 Indirect 234,654 58,026 111,990 30,686
affiliate
Indirect 16,238 0 19,629 0
affiliate
INMOBILIARIA DON 96826870-8 Affiliate 0 0 962 962
ALBERTO
0 0 43,073 0
0 0 12,525 0
-22-
07. Inventory
The balance of the inventory item corresponds to finished products and
materials that are valued as described in Note 2 g). A detail of its
composition is shown below:
2002 Th Ch$ 2001 Th Ch$
Finished Products 2,598,562 2,934,423
Raw Materials and Fuel 1,812,791 1,294,982
Materials and spare parts to be consumed 1,048,374 1,201,989
Materials in transit 652,083 794,353
---------- ---------
TOTAL 6,111,810 6,225,747
-23-
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, 4.1 for Long-Term Assets, and 14.4
for Long-Term Liabilities.
B) INCOME TAX
The Company established tax provisions of 16% of First Cateogry Income Tax in
2002 (15% in 2001) and 35% as single tax under Art. 21, for the 2002 and 2001
fiscal years.
Credits against taxes are shown deducting the payable obligation.
The itemized list is the following:
2002 2001
Th Ch$ Th Ch$
Fiscal year income tax reserve (1,590,799) (1,871,594)
Single tax reserve (4,729) (4,978)
---------- ----------
SUBTOTAL (1,595,528) (1,876,572)
Credits:
Monthly reserve payments 1,497,955 1,951,531
Training expenditures 18,775 16,398
Credit from donations 0 3,324
Recoverable VAT 0 387,033
---------- ----------
CREDIT SUBTOTAL 1,516,730 2,358,286
INCOME TAX TOTAL
Taxes to be Recovered
VAT Tax Credit previous fiscal yr 235,637 178,885
---------- ----------
TOTAL TAXES TO BE
RECOVERED 156.839 660,599
C) TAXABLE PROFIT FUND
The company showed taxable profits to be distributed:
Generated as of 12.31.1983: 2002 2001
Thou Ch$ Thou Ch$
Profit adjustment 1,854,413 1,854,413
Generated since 01.01.1984:
Without Credit 1,012,116 8,408
With 10% First Category Credit 79,860 79,773
With 15% First Category Credit 92,897,950 95,997,214
With 15% Additional Rate Credit 720 720
With 16% First Category Credit 10,050,905 0
----------- -----------
SUBTOTAL TAX PROFITS 104,041,551 96,086,115
Non-income revenues 6,611,407 6,604,151
TOTAL EARNINGS 110,652,958 102,690,266
-24-
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
DEFERRED TAXES
06-30-2002 06-30-2001
-------------------------------------------- --------------------------------------------
Item Asset Deferred Tax Liability Deferred Tax Asset Deferred Tax Liability Deferred Tax
--------------------------------- --------------------- ---------------------- --------------------- ----------------------
Short term Long Term Short Term Long Term Short Term Long Term Short Term Long Term
---------- --------- ---------- --------- ---------- --------- ---------- ---------
Temporary Differences
Reserve non-collectable accounts 20,530 0 0 0 19,651 0 0 0
Expected revenue 0 0 0 0 0 0 0 0
Vacation reserve 47,251 0 0 0 47,351 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 depreciat 0 0 0 4,233,384 0 0 0 3,261,493
Ion
Severance 1,381 26,241 0 0 1,592 30,252 0 0
Other events 0 97,597 0 13,592 0 83,723 0 0
Packaging reserv157,117e0 157,117 0 0 0 180,891 0 0 0
Machinery repair reserve 196,275 0 0 0 50,998 0 0 0
Furnace repair reserve 187,150 592,154 0 0 0 611,664 0 0
Spare parts obsolescence reserve 94,005 0 0 0 95,106 0 0 0
Refractories obsolescence reserve 6,373 0 0 0 0 0 0 0
Deferred customs duties 7,354 0 0 156,011 12,762 0 0 0
Unrealized profit, building sale 0 1,829 0 0 0 13,453 0 0
Accumulated depreciation automoviles 0 10,896 0 0 0 5,696 0 0
Fixed asset, molds 0 0 0 271,323 0 0 0 140,936
OTHERS
Complementary accounts-
net amortization 10,490 117,702 0 2,646,604 36,115 313,812 0 2,685,254
Valuation reserve 0 0 0 0
Total 706,946 611,015 0 2,027,706 372,236 430,976 0 717,175
-25-
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
INCOME TAX
ITEM 06-30-2002 06-30-2001
---------------------------------------------------------------- ---------- ----------
Current tax costs (tax reserve) -1,595,528 -1,876,572
Adjustment tax cost (previous year) 0 -125,714
Effect on assets or liabilities from deferred tax of fiscal year -407,145 -30,718
Tax benefit from tax losses 0 0
Effect of amortization of complementary accounts of deferred -68,492 57,652
assets and 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 -2,071,165 -1,975,352
-26-
09. Short-term and long-term leasing contracts and leasing assets (note
required only for leasing companies defined in circular
No. 939 of 1990).
There are no elements for this item.
-27-
10. Other current assets
As of June 30, 2002, investments in financial instruments with resale
agreements, valued as stated in note 2 p) for Th Ch$6,101,254 are included
under this heading.
In June 2001 there was a balance of Th Ch$1,210,984 for investments in
Financial Institutions with resale agreement, and a balance of Th Ch$4,911,406
for Future Contracts.
-28-
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.
-29-
CRISTALERIAS DE CHILE S.A.
NOTE 11 - INFORMATION ON OPERATIONS WITH PURCHASE COMMITMENT, SALE COMMITMENT,
BUY BACK AND RESELL BACK AGREEMENTS FOR
NEGOTIABLE SECURITIES
PURCHASE (CV) AND SALE (CV) OPERATIONS
Dates
----------------------
Code Counterpart Original Price Rate Final Value Document ID Market
Start End Currency Set Value
---- ---------- ---------- -------------------- -------- --------- ---- ----------- ------------------- ----------
CRV 06.10.2002 07.01.2002 BANCO CHILE Pesos 4,000,000 0.35 4,009,800 PDBC-PRD 4,009,333
CRV 06.24.2002 07.01.2002 BCI Pesos 1,000,000 0.33 1,000,770 PDBC 1,000,660
CRV 06.27.2002 07.01.2002 SANTIAGO C.B. Pesos 175,000 0.3 175,070 PDBC-DPF-CERO BANCO 175,053
CRV 06.28.2002 07.05.2002 JP MORGAN CHASE BANK Pesos 916,000 0.34 916,727 PRBC 916,208
-30-
12. Fixed Assets
Fixed Assets:
The Fixed Assets are shown at purchase cost plus the legal and regulatory
revaluations accumulated as of June 30, 2002 and 2001.
The items that make up the Company's fixed assets as of June 30, 2002 and 2001
include mainly Land, Industrial Constructions, Infrastructure Works,
Machinery, and Equipment.
Technical Reappraisal and Adjustment of Accounting Values
The company carried out a technical reappraisal of its fixed assets in 1979.
In Junee 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$4,301,230 in 2002 and Th
Ch$3,562,934 in 2001.
The detail is shown on an attached chart.
-32-
NET ASSETS
2002 2001
Th Ch$ Th Ch$
LAND
Land & mining claims 1,455,323 1,503,970
Subtotal land 1,455,323 1,503,970
Depreciation Mining Claims
Accrued 0 (13,712)
For the fiscal year 0 0
Subtotal dep. 0 (13,712)
*Subtotal land 1,455,323 1,490,258
CONSTRUCTIONS & INFRASTRUCTURE
High rises and industrial const. 12,454,541 12,706,541
Facilities 4,575,773 4,413,903
Housing developments 25,349 25,328
*Subtotal 17,055,663 17,145,772
DEPRECIATION
Accrued (7,022,035) (6,246,198)
For the fiscal year (402,286) (369,001)
Subtotal depreciation (7,424,321) (6,615,199)
SUBTOTAL CONSTRUCTIONS & INFRASTRUCTURE 9,631,342 10,530,573
MACHINERY & EQUIPMENT
Furnaces 52,820,533 49,094,259
Machinery 36,569,855 34,655,618
Tools 1,660,769 1,566,715
Furniture and Materials 345,056 339,074
Vehicles 199,025 196,917
*Subtotal 91,595,238 85,852,584
DEPRECIATION
Accrued (38,775,283) (32,036,410)
For the fiscal year (3,798,091) (3,038,536)
Subtotal depreciation (42,573,374) (35,074,946)
Subtotal machinery & equip 49,021,864 50,777,637
OTHER FIXED ASSETS
Spare parts 4,978,225 5,441,762
Imports in transit 58,609 612,869
Works underway 5,079,730 2,365,383
Lots in Pirque and Leyda 459,342 458,956
Other 200,904 0
Subtotal other assets 10,776,810 8,878,970
TOTAL FIXED ASSETS 120,883,034 113,381,295
TOTAL ACCRUED DEPREC. (45,797,318) (38,296,320)
TOTAL DEPREC FOR YEAR (4,200,377) (3,407,537)
TOTAL NET FIXED ASSETS 70,885,339 71,677,438
-33-
TECHNICAL REVALUATION AND ADJUSTMENT OF ACCOUNTING VALUES
2002 2001
Th Ch$ Th Ch$
LAND
Land 302,442 302,060
Subtotal land and mining claims net 302,442 302,060
CONSTRUCTIONS & INFRASTRUCTURE
High rises and industrial constructions 6,046,285 5,986,472
Facilities 428,896 428,536
Subtotal Constructions 6,475,181 6,415,008
DEPRECIATION
Accrued prior fiscal years (4,879,306) (4,673,673)
For the fiscal year (100,853) (100,769)
Subtotal depreciations (4,980,159) (4,774,442)
Subtotal constuctions net 1,495,022 1,640,566
MACHINERY AND EQUIPMENT
Furnaces 511,862 556,066
Machinery 979,760 1,002,071
Tools 52,866 52,821
Furniture and materials 14,046 14,034
Subtotal machinery & equipment 1,558,534 1,624,992
DEPRECIATION
Accrued prior fiscal years (1,558,535) (1,564,315)
For the fiscal year 0 (54,628)
Subtotal depreciation (1,558,535) (1,618,943)
Subtotal machinery & equip (1) 6,049
Total Net Technical Revaluation 1,797,463 1,948,675
TOTAL 8,336,157 8,342,060
TOTAL ACCRUED DEPREC. (6,437,841) (6,237,988)
TOTAL DEPREC FOR YEAR (100,853) (155,397)
1,797,463 1,948,674
-34-
13. Sales transactions with leaseback
These type of transactions were not carried out as of JUN 30, 2002 and 2001.
-35-
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 company
capital in the equivalent to UF 359,921 by issuing 343,750,000 shares that
were fully subscribed by Cristalchile. Of such subscription, the company has
paid 288,250,000 shares for an amount of UF 301,093.05 totaling a stake of
98.21% in the subsidiary.
ENVASES CMF S.A.
On Junee 29, 2001 a Special Stockholders Meeting of Crowpla Reicolite S.A. was
held where agreement was reached to increase the company's capital to Th
Ch$26,220,314,772 divided into 56,000 shares, by capitalizing Th Ch$1,755,219
from the Revaluation and Retained Earnings Fund, with the issue of 29,000 cash
shares equivalent to Th Ch$ 15,648,300.
Andina Inversiones Societarias S:A. subscribed and paid for 28,000 shares of
this issue, worth Th Ch$ 15,149,749.
Cristalerias de Chile S.A. subscribed and paid for 1,000 shares worth Th Ch$
498,552.
With the operations referred to above, the shareholding of Cristalerias de
Chile S.A. totals 28,000 shares, representing 50% of the equity of
Crowpla-Reicolite S.A.
The reduction in the percentage of Cristalchile's share in the equity of
Crowpla Reicolite S.A. as of Junee 30, 2001 produced a positive variation in
the calculation of the VPP of Th Ch$ 2,001,714 adjusted, which is included in
Other Non-Operating Income.
Subsequently the company's name was modified to Envases CMF S.A.
CRISTALCHILE INVERSIONES S.A.
This company was created on December 11, 2001 with the participation of
Cristalerias de Chile S.A., which holds 99.99% and the subsidiary CIECSA S.A.
with a 0.01%.
On December 28, 2001, the company sold to its subsidiary Cristalchile
Inversiones S.A., the investment it had in Rayen Cura S.A.I.C., a company
established in the city of Mendoza, Argentina in Th Ch$18,340,577. The
operation had no effect on results.
According to the provisions in Circular Letter 81 of the SVS dated 01/22/02,
the subsidiary adjusted the financial statements of Rayen Cura S.A.I.C. as of
December 31, 2001, considering a rate of exchange of 1.7 Argentine pesos per
US dollar, although no devaluation of the Argentine pesos with respect to the
dollar was recorded in the accounts in Argentina.
As of June 30, 2002, the financial statements of Rayen Cura S.A.I.C. has
acknowledged an exchange rate of 3.8 Argentine pesos per US dollar. On its
part the subsidiary Cristalchile Inversiones S.A., has adjusted the financial
statements of Rayen Cura S.A.I.C. in order to acknowledge the devaluation from
$1.7 to $3.80 per dollar.
The accounting charge against results, as a consequence of the devaluation of
the Argentine peso totaled Th Ch$2,397,216 as of June 30, 2002..
-36-
CRISTALERIAS DE CHILE S.A.
NOTE 14 - INVESTMENTS IN RELATED COMPANIES
BREAKDOWN OF INVESTMENTS
Investment Shareholder Company
R.U.T. Company Country of Control Number of (Percentage) Equity
Origin Currency Shares 06-30-2002 06-30-2001 06-30-2002 06-30-2001
------------------------------------ ---------- ---------- ----------- ---------- ---------- ---------- ----------
96721580-5 Cristalchile Chile Peso 101,213,160 99.9980 99.9900 74,318,963 81,525,102
Comunicaciones S.A.
86547900-K S.A. Vina Santa Rita Chile Peso 493,959,797 54.0970 54.1000 72,680,454 66,126,569
S.A.
86881400-4 Envases CMF S.A. Chile Peso 28,000 50.0000 50.0000 28,389,476 27,060,624
0-E Rayen Cura S.A. Argentina Dollar 0 0.0000 40.0000 0 29,349,999
966088270-4 Ciecsa S.A. Chile Peso 597,401,305 98.2110 98.18540 10,438,437 8,855,355
96826870-8 Inmobiliaria Don Chile Peso 3,817 38.1700 38.1700 725 370,390
Alberto S.A.
96767580-6 Constructora Apoger S.A. Chile Peso 800,000 80.0000 80.0000 46,407 46,868
96628620-2 Inmobiliaira Richelieu Chile Peso 70 0.0000 7.0000 0 2,431
S.A.
96972440-5 Cristalchile Chile Peso 9,999 99.990 0.0000 -1,203,750 0
Inversiones S.A.
TOTAL
Net Result of
R.U.T. Company Income Accrual VPP
06-30-2002 06-30-2001 06-30-2002 06-30-2001 06-30-2002 06-30-2001
------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
96721580-5 Cristalchile -4,805,696 -4,603,559 -4,805,602 -4,603,468 74,317,477 81,523,491
Comunicaciones S.A.
86547900-K S.A. Vina Santa Rita 4,147,264 2,736,633 2,243,546 1,480,437 39,317,945 35,772,497
S.A.
86881400-4 Envases CMF S.A. -402,456 127,772 -201,273 63,886 14,194,738 13,530,311
0-E Rayen Cura S.A. 0 468,062 0 187,225 0 11,738,775
966088270-4 Ciecsa S.A. 307,985 -909,247 302,475 -892,748 10,251,693 8,694,665
96826870-8 Inmobiliaria Don -2,097 -25,305 -801 -9,659 277 141,183
Alberto S.A.
96767580-6 Constructora Apoger S.A. -2,259 -4,953 -1,807 -3,963 37,126 37,494
96628620-2 Inmobiliaira Richelieu 0 -6,589 0 -461 0 171
S.A.
96972440-5 Cristalchile -2,424,438 0 -2,424,196 0 0 0
Inversiones S.A.
TOTAL 138,119,254 151,438,587
Income not Book value
R.U.T. Company Realized of Investment
06-30-2002 06-30-2001 06-30-2002 06-30-2001
------------------------------------------ ---------- ---------- ----------- -----------
96721580-5 Cristalchile 0 0 74,317,477 81,523,491
Comunicaciones S.A.
86547900-K S.A. Vina Santa Rita 0 0 39,317,945 35,772,497
S.A.
86881400-4 Envases CMF S.A. 0 0 14,194,738 13,530,311
0-E Rayen Cura S.A. 0 0 0 11,738,775
966088270-4 Ciecsa S.A. -262,602 -294,184 9,989,089 8,400,481
96826870-8 Inmobiliaria Don 0 0 277 141,183
Alberto S.A.
96767580-6 Constructora Apoger S.A. 0 0 37,126 37,494
96628620-2 Inmobiliaira Richelieu 0 0 0 171
S.A.
96972440-5 Cristalchile 0 0 0 0
Inversiones S.A.
TOTAL -262,602 -294,184 137,856,652 151,144,403
-37-
15. Investments in other companies
At June 30, 2002 and 2001 there are no investments in other companies.
-38-
16. Goodwill Amortization
NEGATIVE GOODWILL
Stock purchases made in different periods of S.A. Vina Santa Rita, Ciecsa
S.A., and Envases C.M.F. S.A., have produced negative goodwill whose net
balance to be amortized as of June 30, 2002 totaled Th Ch$ 2,078,863 (Th
Ch$7,555,700 in 2001).
-39-
CRISTALERIAS DE CHILE S.A.
NOTE 16 - SHORTFALL AND GOODWILL ON INVESTMENTS
06-30-2002 06-30-2001
-------------------------------- -----------------------------
R.U.T. Company Name
Amount Amortiz. Shortfall Amount Amortiz. Shortfall
this period Value this period Value
---------------------------------- --------------- ---------- --------------- ----------
96608270-4 Ciecsa S.A. 58,619 1,465,474 58,570 1,581,382
86881400-4 Envases CMF S.A. 0 0 133,808 0
0-E Rayen Cura S.A. 0 0 145,603 5,312,963
86547900-K S.A. Vina Santa Rita 24,261 613,389 24,240 661,355
TOTAL 82,880 2,078,863 362,221 7,555,700
-40-
17. Intangibles
At June 30, 2002 there are no values for these items, in June 2001 there is a
value of Th Ch$ 2,627 corresponding to a trademark.
-42-
18. Other (Assets)
As of June 30, 2002, the following is included in Other Long-term Assets:
1. The sum of Th Ch$9,233,631 for sale of Bonds of Celulosa Arauco equivalent
to US$13,420,000, at a rate of 6.95% annual with maturity on September 15,
2005.
2. In addition the amount of Th Ch$242,880 for the premium paid for their
purchase, which will be amortized in the Bond's same term.
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.
3. The amount of Th Ch$81,383 for previus interests of the right of customs
duties
At June 30, 2001, there was a balance of Th Ch$321,871 for a difference in
favor of Cristalerias de Chile S.A., in future contracts in foreign currency
with long-term maturity and previus interests of the right of customs duties
deferres for Th Ch$475,916.
-43-
NOTE 18. OTHERS FIXED
INSTRUMENT DATE VALUE ACCOUNT VALUE VALUE
MARKET PROVISION
--------------------------- ---------------------- -------------------
Purchase Maturity Amount Rate
---------- ---------- --------- --------- ---- ----------- ---------
Bonds of Celulosa Arauco 11-16-2001 09-15-2005 4,157,397 4,319,653 6.95 4,202,703 -
Bonds of Celulosa Arauco 11-21-2001 09-15-2005 5,266,973 5,457,481 6.95 5,325,075 -
TOTAL 9,424,369 9,777,134 9,527,778
Note:
1. Did not carry out any Provision because there is not any intention to sell
in the short-term.
2. Th Ch$300,623 included account value. Corresponds to interests earnings
and overprice paid recorded in Short-Term
-44-
19. Short-term obligations with banks and financial institutions
Short-term obligations with Banks and Financial Institutions (5.21.10.10).
As of June 30, 2002 and 2001, there are no 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.
-45-
CRISTALERIAS DE CHILE S.A.
NOTE 19 - OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS, SHORT TERM
Type of Currency and Readjustment Index
Other Foreign
R.U.T. Bank or Financial Dollars Euros Yen Currencies
Institution 06-30-2002 06-30-2001 06-30-2002 06-30-2001 06-30-2002 06-30-2001 06-30-2002 06-30-2001
-------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Short term (code: 5.21.10.10)
Long Term - Short Term
(code: 5.21.10.20)
97036000-K Banco Santiago 0 18,424 0 0 0 0 0 0
0-E J.P Morgan Chase Bank 20,348,771 130,850 0 0 0 0 0 0
Others 0 0 0 0 0 0 0 0
TOTAL 20,348,771 149,274 0 0 0 0 0 0
Capital amount due 19,658,572 149,274 0 0 0 0 0 0
Average annual
interest rate 3,375 5,22 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 U.F.
Institution 06-30-2002 06-30-2001 06-30-2002 06-30-2001 06-30-2002 06-30-2001
-------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Short term (code: 5.21.10.10)
Long Term - Short Term
(code: 5.21.10.20)
97036000-K Banco Santiago 0 0 0 0 0 18,424
0-E J.P Morgan Chase Bank 0 0 0 0 20,348,771 130,580
Others 0 0 0 0 0 0
TOTAL 0 0 0 0 20,348,771 149,274
Capital amount due 0 0 0 0 19,658,572 149,274
Average annual interest rate 0 0 0 0
-46-
20. Other Current Liabilities
As of June 30, 2002 there is a balance of Th Ch$ 386,256 in Other Current
Liabilities as detailed in note 34.
-48-
21. Long term liabilities with banks and financial institutions
The obligations with banks and financial institutions are presented on the
charts attached.
-49-
CRITALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Institution Maturity Years
Bank or Adjustment From 1 From 2 From 3 From 5 More than 10 years
R.U.T. Financial index to 2 to 3 to 5 to 10 Amount Term
Institution currency
M$ M$ M$ M$ M$
----------------------- ------------- ---------- ---------- ---------- -------- --------- -------
0-E J.P. Morgan
Chase Bank Dollars 19,658,572 19,658,572 9,829,285 0 0 2005
Euros - - - - - -
Yen - - - - - -
UF - - - - - -
Non-adj.CH$ - - - - - -
Others - - - - - -
Total 19,658,572 19,658,572 9,829,285 0 0
Porcentaje de obligaciones en moneda extranjera 100.00%
Porcentaje de obligaciones en moneda nacional 0.00%
Closing date Closing date
Current Period Previous period
Institution
Bank or Total Long-Term Average Total Long-Term
R.U.T. Financial at closing of annual at closing of
Institution Financial interest Financial
Statements rate Statements
------------------------- ----------------- -------- ----------------
0-E J.P. Morgan
Chase Bank
49,146,429 3.375% 64,220,900
- -
- -
- -
- -
- -
Total 49,146,429 64,220,900
-50-
22. Short-term and long-term obligations with the public
(promissory notes and bonds)
As of June 30, 2002 and 2001, there are no obligations with the public.
-52-
23. Reserves and Write-offs
Reserves:
As of June 30, 2002, the Company has short-term reserves of Th Ch$6,139,193 and
Th Ch$3,519,479 in 2001.
In the Long-term, reserves are recorded of Th Ch$7,140,084 and Th Ch$7,621,181
respectively.
Bad Debt Reserves:
The Company has established a reserve for bad debts of Th Ch$128,313, and Th
Ch$ 131,008, respectively, as of June 30, 2002 and 2001.
This reserve is deducted from the balance of debtors from sales.
No charges have been made against the reserve in the 2002 and 2001 fiscal
years.
Vacation Reserve:
The company has established a reserve for the total cost of vacations pending
as of June 30, 2002 and 2001, as established in Technical Bulletin No. 47 of
the Accountants Association of Chile. The net balance for this item is Th
Ch$295,322 as of June 30, 2002 (Th Ch$ 315,671 in 2001).
Reserve for Furnace Reconstruction:
This reserve is established throughout the useful life of the refractories of
each smelting furnace so their repair will not have a distort the result of
the fiscal year when the repairs are made.
The Company has established a reserve for this item in the amount of Th
Ch$4,715,514 and Th Ch$4,077,760 as of June 30, 2002 and 2001, respectively.
An itemized list of the amounts provided is shown in the attached chart.
Other Reserves:
A reserve is recorded in the amount of Th Ch$178,296 (Th Ch$634,041 in 2001)
for the obsolescence of refractory bricks and spare parts, which is deducted
from the relevant assets
-53-
Cristalerias de Chile S.A.
Note Reserves and Write-offs 06/30/2002 06/30/2001
Individual
Board Share 142,867 365,769
Legal Bonus 58,168 59,995
Provision Indirect Cost 442,202 421,290
Furnace Reconstruction 1,169,685 -
Machinery Repair 1,207,849 339,985
Severance Pay 158,413 157,119
Packing for Client Return 952,226 1,159,133
Legal Holiday 295,322 315,671
Reserve Spare Parts 446,387 634,041
Reserve Subsidiary Losses 1,206,629 -
Other Reserves 59,445 66,476
Short Term 6,139,193 3,519,479
Severance Pay 3,594,255 3,543,421
Furnace Reconstruction 3,545,829 4,077,760
Long-Term 7,140,084 7,621,181
-54-
24. Severance Payments
The reserve for severance payments to personnel is included at its current
value, as expressed in note 2 r). In 2002 it totals Th Ch$3,752,668
(Th$3,700,540 in 2001)
As of June 30, 2002 and 2001 the parent company has paid severance payments of
Ch$34,716 and Th Ch$48,715 chargeable against the reserve.
-55-
25. Other long-term liabilities
As of June 30, 2002 and 2001 there are no balances for this item.
-56-
26. Minority interest
Not applicable to individual financial statements.
-57-
27. Changes in equity
a. Activity in 2002 and 2001
The activity of the capital and reserve accounts in the fiscal years ended in
June 30, 2002 and 2001, are shown in the attached charts.
The detail of this item is as follows:
2002 2001
Th Ch$ Th Ch$
Future capital increases 4,187,346 4,031,108
Reserve for adjustment of value of fixed assets 1,797,464 1,948,675
Adjustment for conversion difference in investment
in Rayen Cura S.A.I.C. 3,359,655 1,901,548
Difference VPP Sodex (211,058) (210,880)
--------- ---------
TOTAL OTHER RESERVES 9,133,407 7,670,451
========= =========
-58-
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NET WORTH
Reserve Premium Reserve
Paid-in capital in sale of Other Future
Capital revaluation shares Reserves Dividends
------- ----------- ------ -------- ---------
Balances as of 06-30-2002
Initial balance 62,863,356 0 26,794,558 7,942,919 102,798,611
Distribution result previous fiscal year 0 0 0 0 12,989,754
Final dividend previous fiscal year 0 0 0 0 -4,230,400
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 1,142,830
Eventual Dividend 0 0 0 0 0
Owner's equity Revaluation 0 377,180 160,766 47,658 673,578
Fiscal Year Result 0 0 0 0 0
Provisional Dividends 0 0 0 0 0
========== ======= ========== = === === ===========
Final balances 62,863,356 377,180 26,955,324 9-133-407 112,231,045
========== ======= ========== = === === ===========
Balances as of 06-30-2001
Initial balance 60,973,187 0 25,998,901 6,166,094 91,287,846
Distribution result previous fiscal year 0 0 0 0 12,778,031
Final dividend previous fiscal year 0 0 0 0 -2,660,480
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 1,254,099 0
Eventual Dividend 0 0 0 0 -1,728,000
Owner's equity revaluation 0 914,598 389,833 92,491 1,505,529
Fiscal Year Result 0 0 0 0 0
Provisional Dividends 0 0 0 0 0
========== ======= ========== ========= ===========
Final balances 60,973,187 914,598 26,378,734 7,512,684 101,182,925
========== ======= ========== ========= ===========
Updated balances 62,253,624 933,805 26,932,687 7,670,451 103,307,766
========== ======= ========== ========= ===========
Accumulated Provisional Devel. Fiscal
Results Dividends Period Year
Deficit Result
----------- ----------- -------- ----------
Balances as of 06-30-2002
Initial balance 17,770,611 -4,657,728 -123,129 0
Distribution result previous fiscal year -17,770,611 4,657,728 123,129 0
Final dividend previous fiscal year 0 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 0 0 0
Fiscal Year Result 0 0 0 3,571,663
Provisional Dividends 0 -960,000 0 0
Final balances 0 -960,000 0 3,571,663
Balances as of 06-30-2001
Initial balance 17,042,239 -4,156,672 -107,536 0
Distribution result previous fiscal year -7,042,239 4,156,672 107,536 0
Final dividend previous fiscal year 0 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 -90,778 0
Accumulated conversion difference adjustment 0 0 0 0
Eventual Dividend 0 0 0 0
Owner's equity revaluation 0 -5,376 0 0
Fiscal Year Result 0 0 0 8,956,136
Provisional Dividends 0 -1,344,000 0 0
========== ========= ====== =========
Final balances 0 -1,349,376 -90,778 8,956,135
========== ========= ====== =========
Updated balances 0 -1,377.713 -92,684 9,144,215
========== ========= ====== =========
-59-
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 62,863,356 62,863,356
-60-
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH - DEFICIT ACCUMULATED IN DEVELOPMENT PERIOD
OF SUBSIDIARY
RUT COMPANY AMOUNT COMMENTS
FISCAL YEAR ACCUMULATED
- - - - -
-61-
28. Other Non-operating Income and Disbursements
As of June 30, 2002 non-operating income totaled Th Ch$256,077 and Th Ch$
5,141,658 in 2001.
Non-operating disbursements amounted to Th Ch$356,053 in 2002 and Th
Ch$255,419 in 2001
-62-
Cash Flow Statement
An itemized list is included in the attached chart.
CRISTALERIAS DE CHILE S.A.
CASH FLOW STATEMENT
1. The following it the detail of the item: OTHERS:
2002 2001
Th Ch$ Th Ch$
541.11.40 Other income paid
Discount for Custom Duties 230,225 0
Redemption long term credits 68,465 0
Other income 0 2,037
Total 298,690 2,037
541.11.80 Other expenses paid
Exchange difference 429,997 569,545
Donations 35,644 24,788
Other expenses 3,947 18,232
Total 469,588 612,565
541.11.75 Other financing income
Stamp Tax of credit bank 481 54,428
Total 481 54,428
541.13.15 Sale of other investments
CGE share 0 5,436,701
Sale of PRC 0 3,462
Redemption Time Dep. over 90 days 10,748,618 922,202 -
Total 10,748,618 9,821,293
-63-
541.13.30 Other investment income
Maturity of future contracts 1,432,598 524,544
1,432,598 524,544
541.13.65 Other investment made
Purchase of shares 340,047 40,328
Future contracts 354,882 0
Total 694,929 40,328
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 150 960,000 July-02
Amounts payable investment 248,925 July-02
Amounts payable investment 392,175 August-Sept.- 02
TOTAL 1,601,100
-64-
Non-operating Income and Disbursements
CRISTALERIAS DE CHILE S.A.
NOTE 28: NON-OPERATING INCOME AND EXPENSES
INDIVIDUAL 2,002 2,001
Thou Ch$ Thou Ch$
--------------------------------------- ----------- -----------
Income
Material Sales 16,869 9,606
Lease of Offices and Business Premises 100,470 129,876
Fixed Asset Sales 22,506 0
Miscellaneous Income 59,745 67,080
Sales of Grapes 30,572 12,003
Sales of Shares 0 2,905,479
Amortization of Unrealized Income 15,915 15,902
Difference % Shareholding in CMF S.A 0 2,001,712
Total Non-Operating Income 256,077 5,141,658
Expenses
Professional advisory services 317,700 249,528
Other expenses 27,366 671
Comunicactions 169 0
Insurance 10,818 5,220
Total Non-Operating Expenses 356,053 255,419
-65-
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 2002 and 2001 fiscal year
of Th Ch$288,207 and Th Ch$428,199 respectively.
Cristalerias de Chile S.A.
NOTE 29: ADJUSTMENT FOR PRICE LEVEL RESTATEMENTS
ADJUSTABILITY
ASSETS (DEBITS)/CREDITS INDEX 06-30-2002 06-30-2001
----------------------------------------- ------------- ------------- ------------
INVENTORY IPC -29,236 147,793
FIXED ASSET IPC 416,570 800,741
INVESTMENTS IN RELATED COMPANIES IPC 851,233 2,368,722
MARKETABLE SECURITIES IPC 19,714 0
SHORT TERM DEBTORS IPC 1,557 0
ACCOUNTS RECEIVABLE RELATED COMPANIES IPC 148,350 0
LONG-TERM DEBTORS IPC 1,107 0
OTHER NON-MONETARY ASSETS IPC 8,755 239,592
EXPENSE AND COST ACCOUNTS IPC 100,689 160,041
TOTAL (DEBITS)/CREDITS - 1,518,649 3,716,889
LIABILITIES (DEBITS)/ CREDITS
NET WORTH IPC -1,259,182 -2,957,915
ACCOUNTS RECEIVABLE RELATED COMPANIES IPC -98 0
SHORT-TERM BANK LOANS IPC -112,250 0
-66-
SHORT-TERM RESERVES IPC -731 0
LONG-TERM BANK LOANS IPC -280,622 0
LONG-TERM RESERVES IPC 29,154 0
LONG-TERM CREDITORS IPC -328 0
NON-MONETARY LIABILITIES IPC 268 -65,365
INCOME ACCOUNTS IPC -183,067 -265,410
TOTAL (DEBITS)/ CREDITS - -1,806,856 -3,288,690
(LOSS) PROFIT FROM ADJUSTMENT FOR PRICE LEVEL RESTATEMENT -288,207 428,199
-67-
30. Difference in Exchange
A net charge against results was made because of exchange rate difference of
Th Ch$ 1,513,495 in 2002 and a net credit of Th Ch$20,000 in 2001.
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.
-68-
Cristalerias de Chile S.A.
NOTE 30: EXCHANGE DIFFERENCES
ITEM CURRENCY AMOUNT
-------------------------------------- ------------ ----------------------------
06-30-2002 06-30-2001
------------ ------------
FIXED (DEBITS) CREDITS
CURRENT ASSETS DOLLARS 6,088 9,268
TIME DEPOSITS DOLLARS 557,094 1,520,558
MARKETABLE SECURITIES DOLLARS 359,804 0
SUNDRY DEBTORS DOLLARS 341 0
ACCOUNTS RECEIVABLE RELATED COMPANIES DOLLARS 0 4,804
INVENTORY DOLLARS 73,527 97,844
LONG TERM INVESTMENT DOLLARS 458,754 0
OTHER ASSETS DOLLARS 20,486 241,382
TOTAL (DEBITS) CREDITS 1,476,094 1,873,856
LIABILITIES (DEBITS) CREDITS
SHORT-TERM BANK LOANS DOLLARS 0 -1,621
NOTES PAYABLE DOLLARS -169,730 -866,779
NOTES PAYABLE OTHER URRENCY -46,720 0
SHORT-TERM RESERVES DOLLARS -56,542 0
LONG-TERM BANK LOANS DOLLARS 596,267 -580,469
LONG-TERM RESERVES DOLLARS -168,650 -343,337
SUNDRY CREDITORS - LONG TERM DOLLARS -115,938 -85,074
OTHER LIABILITIES DOLLARS -1,286 -16,576
TOTAL (DEBITS) CREDITS 37,401 -1,893,856
-69-
(LOSS) PROFIT FROM EXCHANGE DIFFERENCE 1,513,495 -20,000
-70-
31. Extraordinary Items
As of June 30, 2001, a partial reversion of the reserve for the repair of
Furnace C was acknowledged in the amount of Th Ch$1,822,561, net of taxes.
As of June 30, 2002, there are no transactions for this item.
-71-
32. Expenses incurred in the sale of shares and debt instruments
As of June 30, 2002 and 2001, there are expenses of Th Ch$13,565 for issue of
credits serie C and D.
-72-
33. Cash Flow Statement
An itemized list is included in the attached chart.
CRISTALERIAS DE CHILE S.A.
CASH FLOW STATEMENT
1. The following it the detail of the item: OTHERS:
2002 2001
Th Ch$ Th Ch$
---------------- -------------
541.11.40 Other income paid
Discount for Custom Duties 230,225 0
Redemption long term credits 68,465 0
Other income 0 2,037
Total 298,690 2,037
541.11.80 Other expenses paid
Exchange difference 429,997 569,545
Donations 35,644 24,788
Other expenses 3,947 18,232
Total 469,588 612,565
541.11.75 Other financing income
Stamp Tax of credit bank 481 54,428
Total 481 54,428
541.13.16 Sale of other investments
CGE share 0 5,436,701
Sale of PRC 0 3,462
Redemption Time Dep. over 90 days 10,748,618 922,202
Total 10,748,618 9,821,293
-73-
541.13.31 Other investment income
Maturity of future contracts 1,432,598 524,544
1,432,598 524,544
541.13.66 Other investment made
Purchase of shares 340,047 40,328
Future contracts 354,882 0
Total 694,929 40,328
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 150 960,000 July-02
Amounts payable investment 248,925 July-02
Amounts payable investment 392,175 August-Sept.-02
TOTAL 1,601,100
-74-
34. Derivative Contracts
FUTURE CONTRACTS IN FOREIGN CURRENCY
The parent company has signed future contracts in foreign currency of Th US$
119,600 in 2002 (Th US$ 120,325 in 2001) 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 June 30, 2002 there was a difference in favor of the financial
institutions of Th Ch$386,256, which is presented in Other Current
Liabilities.
As of June 30, 2001 there was a difference in favor of the company of Th
Ch$321,870, which is presented in Other Current Assets.
-75-
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS
TYPE OF TYPE OF VALUE OF MATURITY OR DESCRIPTION OF CONTRACTS VALUE OF ACCOUNTS AFFECTED
DERIVATIVE CONTRACT CONTRACT EXPIRATION SPECIFIC PURCHASE/ PROTECTED ITEM PROTECTED ASSETS/LIABILITIES EFFECT ON RESULT
OR TRANSACTION NOT
DATE ITEM SALE NAME AMOUNT ITEM NAME AMOUNT REALIZED REALIZED
POSITION
---------- -------- ---------- ---------- ------------- -------- ---- ------ ---------- ----------- ------- -------- --------
FR CI 36,466,650 THIRD 2002 EXCHANGE RATE P - 0 36,466,650 LIABILITIES 598,835 -598,835 0
FR CI 23,806,530 THIRD 2002 EXCHANGE RATE P - 0 23,806,530 LIABILITIES 328,701 -328,701 0
FR CI 17,201,250 THIRD 2002 EXCHANGE RATE P - 0 17,201,250 ASSETS 367,637 367,637 0
FR CI 4,816,350 FIRST 2003 EXCHANGE RATE P - 0 4,816,350 ASSETS 173,643 173,643 0
-76-
35. Contingencies and Restrictions
CONTINGENCIES AND COMMITMENTS
As of June 30, 2002, there is a guarantee delivered in the amount of Th
Ch$7,667 (Th Ch$ 6,843 in 2001), according to the detail in the attached
chart.
LAWSUITS OR OTHER LEGAL ACTIONS THE COMPANY IS INVOLVED IN
As of June 30, 2002 and 2001 there are no pending lawsuits and other legal
actions corresponding
OTHER CONTINGENCIES
In relation to the syndicated loan subscribed with JP Morgan Chase Bank and
other 8 creditor banks for US$ 100 million, the following specific financial
obligations exist:
a) TOTAL CONSOLIDATED DEBT TO CAPITALIZATION RATIO
Cristalerias de Chile S.A will not allow the Total Consolidated Debt to
Capitalization Ratio to exceed the 0.36 to 1.0 ratio at any time.
The capitalization ratio for Cristalerias de Chile S.A. is the sum: Net Equity
plus Monority Interests plus Minority Interests plus Total Consolidated Debt.
b) NON-CONSOLIDATED NET DEBT TO EBITDA RATIO
Cristalerias de Chile S.A will not allow the Non-consolidated Net Debt to
EBITDA ration to exceed the 3.0 to 1.0 ratio at any time.
The non-consolidated EBTDA is the sum of the following: operating income plus
depreciation and amortization, plus non-cash charges (in the extent that they
have been deducted to determine the operating income and cash income for
interests minus non-cash credits (in the extent that they have been added when
determining operating income), in each case for such period.
c) INTEREST COVERAGE RATIO
Cristalerias de Chile S.A. will not allow the Interest Coverage Ratio to be
lower than the following ratios in any point in time during the following
respective periods: the period from the date the Credit Agreement is entered
into until December 31, 2000, ratio 4.00; period between January 1, 2001 and
December 31, 2002, ratio 3.50; and period from January 1, 2003 and during the
entire following period, ratio 4:00.
The Interest Coverage is understood as the day when it is determined, the
ratio between the non-consolidated EBITDA for the four consecutive fiscal
quarters ending on, or most recently ended before, that date, and the Interest
Expenses for that period.
d) NET EQUITY
Cristalerias de Chile S.A. will maintain a minimum of the following amounts:
period from the date the Credit Agreement is entered into until December 31,
2002, UF 10,000,000 and period from January 1, 2003 and during the entire
following period, UF 11,900,000.
Cristalerias de Chile S.A. and all its subsidiaries executed with 100% of
restrictions of the creditors.
-78-
ECONOMY ARGENTINE CONTEXT
As of June 30, the fixed of Rep. Argentina, represents 5.6% of the consolidated
fixed of the company. Likewise, the investments maintained in that country
represents 10.5% of the company equity
Since is ample knowlegdge the economy argentine context which is throught the
Republic of Argentina do it possible, in this moments, to forsee which will be
its evolution, likewise the consequences this could have in the economy and
fonancial possition of the subsidiay S.A. Vina Santa Rita for its indirect
investment in Vinla Dona Paula S.A., and the affiliate Cristalchile
Investments S.A., for its investment in Rayen Cura S.A.I.C, both in Argentina.
For which reason, the presents financial statements are not include the
effects that could results of the adverse condotions thqt could occur in the
future, in consequence, must be read to consider these condition.
OTHER CONTINGENCIES
As of June 30, 2002 and 2001, management is not aware of any other
contingencies that could affect the company.
-79-
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - DIRECT GUARANTEES
CREDITOR OF GUARANTEE DEBTOR TYPE OF ASSETS COMMITTED
GUARANTEE
----------------------- --------------------- --------- -----------------
NAME RELATIONSHIP TYPE BOOK
VALUE
--------------------- ------------------------ ----- ------
EDIFICIO METROPOLIS AGF CRISTALERIAS DE CHILE COMMERCIAL DEPOSIT FLOOR 7,667
S.A.
BALANCES PENDING RELEASE OF GUARANTEES
PAYMENT AS OF CLOSING DATE -----------------------------------------------------------
OF FINANCIAL STATEMENTS
----------------------------------------
06-30-2002 06-30-2001 06-30-2003 ASSETS 06-30-2004 ASSETS 06-30-2005 ASSETS
---------- ---------- ---------- ------ ---------- ------ ---------- -------
EDIFICIO METROPOLIS AGF 7,667 7,667 6,843 0 0 0 7,667 0
CREDITOR OF GUARANTEE DEBTOR TYPE OF ASSETS COMMITTED
GUARANTEE
----------------------- --------------------- --------- -----------------
NAME RELATIONSHIP TYPE BOOK
VALUE
--------------------- ------------------------ ----- ------
Societe de
Participations Rayen Cura S.A. Affiliate Solidary 0 0
BALANCES PENDING RELEASE OF GUARANTEES
PAYMENT AS OF CLOSING DATE -----------------------------------------------------------
OF FINANCIAL STATEMENTS
----------------------------------------
06-30-2002 06-30-2001 06-30-2003 ASSETS 06-30-2004 ASSETS 06-30-2005 ASSETS
---------- ---------- ---------- ------ ---------- ------ ---------- -------
Societe de
Participations
Financieres et
Industrielles 3,566,851 3,699,124 792,634 0 792,634 0 1,981,583 0
-80-
36. Guarantees obtained from third parties
As of June 30, 2002 and 2001 the company has received guarantees from third
parties, which are shown below:
ITEM 2002 2001
Th Ch$ Th Ch$
Real Estate Lease Bank Boston 367,690 UF 6,017 6,011
Real Estate Lease to Telecomunicaciones
Cono Sur Ltda. (130 UF) 2,126 2,124
Lease Real Estate Office 202 AGF Building 3,843 3,839
Suppliers Sight Drafts 12,157 1,245
Security Bank (317.90 UF) 5,199 0
------ ------
TOTAL 29,342 13,219
-82-
37. Local and Foreign Currency
Charts are attached showing the foreign currency balance as of June 30, 2002
and 2001.
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - ASSETS
ITEMS Currency Amount
06-30-2002 06-30-2001
---------------------------- ----------------- ------------- -------------
Current Assets
CASH Adjustable Ch$ 839,888 188,337
CASH Dollars 119,223 103,633
TIME DEPOSITS Dollars 14,790,742 22,407,740
MARKETABLE SECURITIES Adjustable Ch$ 3,644,054 3,274,874
MARKETABLE SECURITIES Dollars 6,521,246 0
MARKETABLE SECURITIES Non-adjust. Ch$ 190,738 0
DEBTORS FROM SALES Non-adjust. Ch$ 13,485,303 13,751,936
DOCUMENTS RECEIVABLE Non-adjust. Ch$ 3,247,684 1,979,230
MISCELLANEOUS DEBTORS Adjustable Ch$ 72,624 128,937
MISCELLANEOUS DEBTORS Non-adjust. Ch$ 461,655 302,631
MISCELLANEOUS DEBTORS Dollars 6,030 3,450
DOC.&ACTS. REC. REL. CO'S. Adjustable Ch$ 291,814 567,607
DOC.&ACTS. REC. REL. CO'S. Dollars 0 66,199
DOC.&ACTS. REC. REL. CO'S. Non-adjust. Ch$ 2,211,785 2,809,071
STOCK Adjustable Ch$ 6,111,810 6,225,747
REFUNDABLE TAX Non-adjust Ch$ 156,839 660,599
EXPENSES PAID IN ADVANCE Dollars 109,885 33,492
EXPENSES PAID IN ADVANCE Adjustable Ch$ 129,232 25,973
DEFERRED TAXES Non-adjust Ch$ 706,946 372,236
OTHER CURRENT ASSETS Non-adjustable Ch$ 6,101,254 1,210,984
OTHER CURRENT ASSETS Dollars 0 4,911,406
Fixed Assets
FIXED ASSETS Adjustable Ch$ 72,682,802 73,626,112
Other Assets
INVESTMENT REL. CO'S. Adjustable Ch$ 137,856,652 151,144,403
NEG. INVESTMENT GOODWILL Adjustable Ch$ 2,078,863 7,555,700
LONG-TERM DEBTORS Adjustable Ch$ 176,836 106,159
L-T DOC. REC. REL. CO'S. Adjustable Ch$ 24,710,102 2,222,018
INTANGIBLES Adjustable Ch$ 0 2,627
DEFERRED TAX Non-adjustable Ch$ 0 0
MISCELLANEOUS Dollars 9,557,894 797,787
Total Assets
Non-adjust. Ch$ 27,402,092 21,275,024
Dollars 31,105,020 28,323,707
Adjustable Ch$ 247,754,789 244,880,157
-83-
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - CURRENT LIABILITIES
ITEM Currency Up to 90 days 90 Days to 1 Year
------------------------------ ---------------- ---------------------------------------- ---------------------------------------
06-30-2002 06-30-2001 06-30-2002 06-30-2001
-------------------- ------------------- -------------------- -------------------
Amount Avg. Amount Avg. Amount Avg. Amount Avg.
Annual Annual Annual Annual
Thou Ch$ Int.Rate Thou Ch$ Int.Rate Thou Ch$ Int.Rate Thou Ch$ Int.Rate
---------- -------- ---------- -------- --------- -------- --------- ---------
Current Liabilities
Long-Term Obligations Dollars 20,348,771 3.375 149,274 7.47 0 0 0 0
1-year maturity
Dividend Payable Non-adjust. Ch$ 536,033 0 714,733 0 0 0 0 0
Accounts Payable Non-adjust. Ch$ 1,894,684 0 2,133,078 0 0 0 0 0
Documents Payable Dollars 1,846,444 0 3,055,575 0 0 0 0 0
Documents Payable Other Currencies 313,593 0 479,361 0 0 0 0 0
Miscellaneous Creditors Non-adjust. Ch$ 463,847 0 367,471 0 0 0 0 0
Doc. and Accts. Payable rel Co Adjustable Ch$ 23,331 0 6,629 0 0 0 0 0
Doc. and Accts. Payable rel Co Non-adjust. Ch$ 652,553 0 802,867 0 0 0 0 0
Reserves Adjustable Ch$ 295,322 0 472,790 0 158,413 0 157,119 0
Reserves Dollars 0 0 0 0 1,169,685 0 0 0
Reserves Non-adjust. Ch$ 4,515,773 0 3,046,689 0 0 0 1,040,487 0
Withholding Non-adjust. Ch$ 813,077 0 717,539 0 0 0 0 0
Other Current Liabilities Adjustable Ch$ 386,256 0 0 0 0 0 0 0
Total Current Liabilities
Dollars 22,195,215 - 3,204,849 - 1,169,685 - 0 -
Non-adjust. Ch$ 8,875,967 - 7,782,377 - 0 - 1,040,487 -
Other Currencies 313,593 - 479,361 - 0 - 0 -
Adjustable Ch$ 704,909 - 479,419 - 158,413 - 157,119 -
-84-
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES
CURRENT PERIOD 06-30-2002
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 39,317,142 3.375 9,829,287 3.375
Financial Institutions
Deferred Custom Duties Dollars 777,335 11.06 133,516 11.06
Long-term Creditors Adjust. Ch$ 58,089 0 0 0
Long-term Reserves Dollars 3,545,829 0 0 0
Long-term Reserves Adjust. Ch$ 3,594,255 0 0 0
Deferred Taxes Non-adjust. Ch$ 1,416,691 0 0 0
Total Long-term Liabilities
Dollars 43,640,306 - 9,962,803 -
Adjust. Ch$ 3,652,344 - 0 -
Non-adjust. Ch$ 1,416,691 - 0 -
ITEM 5-10 Years More than 10 years
---------------------------- ----------------------- --------------------------
Amount Average Amount Average
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
-------- ------------- -------- -------------
Obligations with Banks and 0 0 0 0
Financial Institutions
Deferred Custom Duties 0 0 0 0
Long-term Creditors 0 0 0 0
Long-term Reserves 0 0 0 0
Long-term Reserves 0 0 0 0
Deferred Taxes 0 0 0 0
Total Long-term Liabilities
0 - 0 -
0 - 0 -
0 - 0 -
-85-
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES
PREVIOUS PERIOD 06-30-2001
ITEM Currency 1-3 Years 3-5 years
------------------------------- -------------- ------------------------------ ---------------------------
Amount Average Amount Average
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
---------- ------------- ----------- -------------
Obligations with banks Dollars 36,697,657 4.89 27,523,243 7.43815
and financial institutions
Sundry creditors Dollars 723,314 0 849,173 11,06
Sundry creditors Adjust. Ch$ 59,963 11.06 0 0
Long-term Reserves Dollars 4,077,761 0 0 0
Long-term Reserves Adjustable Ch$ 3,543,420 0 0 0
Deferred Taxes Non-adjust. Ch$ 286,199 0 0 0
Total Long-term Liabilities
- Dollars 41,498,732 - 28,372,416 -
- Adjust. Ch$ 3,603,383 - 0 -
- Non-adjust. Ch$ 286,199 - 0 -
ITEM 5-10 Years More than 10 years
------------------------------- -------------------------- --------------------------
Amt. Average Amount Average
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
-------- ------------- -------- -------------
Obligations with banks 0 0 0 0
and financial institutions
Sundry creditors 0 0 0 0
Sundry creditors 0 0 0 0
Long-term Reserves 0 0 0 0
Long-term Reserves 0 0 0 0
Deferred Taxes 0
Total Long-term Liabilities
- 0 - 0 -
- 0 - 0 -
- 0 - 0 -
-86-
38. Penalties
In the 2002 and 2001 fiscal years no penalties have been applied to the
company, the Members of the Board or Company Managers by the SVS or other
administrative authorities.
-88-
39. Subsequent Events
As of July 16, 2002 a provisional dividend N(degree)150 of Th Ch$15 was paid
by the company and was approved by the Board of Directors on June
25, 2002.
At of August 14, 2002 bonds were issued for UF 4,100,000, this was registered
in the Register of SVS with the N(degree) 296 on July 9, 2002 and subsequently
was modified by Certificate at of August 12, 2002.
Tje Series C bonds are 4.75% bonds due in 6 years for UF 2,000,000. The Series
D bonds are 5.9% bonds due in 21 years for UF 2,000,000. The bond offering
realized UF 3,937,063 or 96.02% of the total offering. The differnce, less
expenses, will be amortized over the period in which the bonds are outstanding.
-89-
40. Environment
ENVIRONMENT
In its commitment to preserve the environment, as of June 30
2002 the Company has made investments of Th Ch$ 181,326 for the repair of an
electrostatic precipitator to filter the gases issued by our smelting
processes. The company thereby would comply with the emission standards for
particulate material issued by the supervisory agencies.
-90-
41. TIME DEPOSITS
At June 30, 2002 and 2001 the Company presents the following information:
INSTITUTION Currency 2002 2001
Th Ch$ Th Ch$
Banco Santiago US$ 5,071,858 2,762,890
Banco Scotiabank US$ 3,699,351 0
Banco Credito e Inversiones US$ 6,019,533 4,078,888
Banco Bilbao Viscaya New York US$ 0 2,629,092
Banco Santander N. York US$ 0 12,936,870
---------- ----------
TOTAL 14,790,742 22,407,740
========== ==========
-91-
42. STOCK TRANSACTIONS
During the 2002 and 2001 fiscal years, members of the board, controlling
stockholders, related individuals and entities carried out transactions in the
company's stock.
In the fiscal year 2001, the following transactions were carried out:
2002 2001
----------------- ------------------------
INSTITUTION Purchases Sales Purchases Sales
----------------------- --------- ----- --------- -----------
The Bank of New York 0 0 104,439 2,398,359
-92-
43. DISTRIBUTION OF SHAREHOLDERS
The distribution of stockholders as of June 30, 2002 and 2001 is the following:
% of Shareholding No. of Shareholders
----------------- -------------------
TYPE OF SHAREHOLDER 2002 2001 2002 2001
----------------------------- ------ ------ ------ -----
10% or more shareholding 34.03 34.03 1 1
Less than 10% shareholding
with investment equal to or
higher than 200 UF 65.81 65.80 250 246
Less than 10% shareholding
with investment less than
200 UF 0.16 0.17 826 855
TOTAL 100.00 100.00 1,077 1,102
CONTROLLING
SHAREHOLDER 52.14 52.14 3 3
-93-
44. BOARD COMPENSATION
During the years 2002 and 2001 reserves were made for legislative assembly and
the profit sharing in the amount of Th Ch$715,912 and Th Ch$700,577,
respectively, according to the following details:
2002 2001
ThCh$ ThCh$
Share of previous fiscal year profits 710,824 696,005
Legislative assembly for meeting asistance 4,085 3,714
Legislative assembly the Board of the Directors 1,003 858
-------- --------
TOTAL 715,912 700,577
======== ========
The share for 2002 totaled Th Ch$142,867 (Th Ch$365,769 in 2001)
-94-
CRISTALERIAS DE CHILE S.A.
NOTES TO FINANCIAL STATEMENTS AS OF June 30, 2002 AND 2001
1.- FINANCIAL INDICATORS
06-30-2002 06-30-2001 12-31-2001
---------- ---------- ----------
LIQUIDITY
Current liquidity times 1.77 4.94 2.35
Acid ratio times 1.56 4.33 2.01
DEBT
Debt ratio times 0.4 0.4 0.4
Short-term debt % 36.3 13.9 27.9
Long-term debt % 63.7 86.1 72.1
Coverage of interest expenses times 4.6 4.74 5.5
ACTIVITY
Total assets Mill Ch$ 306,262 294,479 306,527
Investments Mill Ch$ 5,735 20,909 28,513
Disposal of property Mill Ch$ 6 614 1,353
Inventory turnover times 8.0 7.5 7.1
Inventory permanence days 44.8 48.1 50.7
PROFITS (LOSSES)
Operating income Mill Ch$ 30,382 29,964 66,178
Operating costs Mill Ch$ 18,111 18,332 40,041
Operating profit Mill Ch$ 9,975 9,251 20,865
Financial expenses Mill Ch$ 1,338 2,196 3,957
Non-operating result Mill Ch$ (4,332) 46 (1,423)
R.A.I.I.D.A.I.E. Mill Ch$ 10,514 13,840 29,875
After-tax profit Mill Ch$ 3,572 9,144 17,877
RATE OF RETURN
Return on equity % 1.7 4.4 8.5
Return on assets % 1.2 3.2 6.0
Return on operating assets % 10.25 10.2 22.9
Profit per share $ 55.8 142.8 279.3
Return on dividends % 3.7 3.2 3.1
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: Profit 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.: Profit before taxes, interest, depreciation,
amortization, and special items.
Return on dividendes: Sum of dividends paid in the last twelve months
divided by market price of stock at closing of
period.
-95-
The main trends observed in the 2002 fiscal year indicators are:
LIQUIDITY INDICES
There is a reduction in the liquidity index in relation to June 2001 despite a
significant reduction in notes and account payable, because of the transfer to
the short term of long-term syndicated loan installment.
DEBT INDICES
Although the debt index has had a slight increase because of the rise in the
rate of exchange, this financial index remained steady during the periods
studied because of the increase in equity resulting from the increase in
profits.
On the other hand, the distribution of the short-term and long-term debt shows
variations due to the expiry of installments payable in less than one year of
Long Term Liabilities that have been transferred to Short Term.
The coverage index of financial expenses fell with respect to the previous
year because of lower profits.
ACTIVITY INDICES
The indices of inventory turnover and permanence improved because of the
stocks bought by management to reduce product stock inventories.
PROFITABILITY INDICES
Profitability indices fell during the fiscal year because of a reduction in
profits.
On the other hand, although dividends distributed between July 2000 and June
2001 rose by 3% compared to the July 2001/June 2002 period, the rate of return
of dividends show the increase because of the dropped in the price of stocks
in the stock exchange, which rose from $4,090 per share as of June 30, 2001, to
$3,801 per share as of June 30, 2001.
2. DIFFERENCE BETWEEN BOOK VALUE AND MARKET VALUE OF MAIN ASSETS.
The financial statements of the company have been prepared according to
generally accepted accounting principles and general and specific norms of the
Securities and Insurance Commission, which is the agency that regulates the
Company. The valuation of the assets includes adjustment for currency
devaluation, reserves, and technical revaluations. We believe the foregoing is
a reasonable way to value the company's permanent investments.
As of June 30, 2002, there were financial investments in stocks recorded in the
accounting according to their purchase price of Th Ch$ 3,644 million whose
market value on the same date was Th Ch$6,022 million.
-96-
3. RESULTS OF THE FIRST QUARTER OF 2002
3a. Individual Result
The Company had non-consolidated sales of Ch$30,382 million as of June 2002,
which is a 1.4% increase compared to the previous fiscal year. Volumes sold
increased by 0.6%, reaching 108.080 tons. This volume level is mainly due to
higher sales of bottles for the non-returnable beer and wine markets.
Operating profit rose by 7.8%, totaling Ch$9,975 million. For comparison
purposes the operating margin increased due the lower sale of lower-margin
imported products.
The Company's net profit amounted to Ch$3,572 million compared to Ch$9,144
million the previous year. This result can be explained in part by the
reduction in the non-operating result, which passed from a profit of Ch$46
million in 2001 to a loss of $4,332 million in 2002. During 2001,
extraordinary income were recorded by the company corresponds to the sales
share of the CGE and because the valuation of their investment in the
asociating between Crowpla-Reicolite and Multipack. In Addition, a greater
loss results from the effect of the devaluation of the Argentine pesos (from
$1.7 to $3.8 Argentine pesos per dollar) in the accounting of the financial
statements of Rayen Cura, which generated a loss of $2,424 million for the
quarter. This was compensated in part in Vina Santa Rita and CIECSA. In
addition, in the year 2001 the company had an extraordinary income of Ch$976
million corresponding to the reversion of the reserve for the repair of
Furnace C, included in the account "Extraordinary Items".
3b. Result in Subsidiaries
As of June 30, 2002, Santa Rita's profit was Ch$4,147 million, which was a
51.5% increase over the same period in 2001. In the local market, the volumes
of the Company were 19.0% higher than in 2001. The prices in this market
dropped 18.0% in real terms, as a result of increased competition and lower
cost of musts, which led to valued sales in the local market dropping 3.0%.
Sales in the export market increased 12.5% in volume due to higher sales to
the European and Latin American markets. During the period, exports
represented 52.6% of total income with US$ 25,2 million. The operating result
was increased 21.2%, reaching Ch$4,703 million, mainly as a result of the
increase in prices in the local market and the increase in volumes in the
export market. The average price in dollars per case for the export market was
US$ 30,5, whereas the average price for the industry was US$22,23 per case. As
of June 2002, Santa Rita showed a non-operating profit of Ch$311 million,
compared to a loss of Ch$496 million in 2001, which can be mainly explained by
lower financial costs.
Megavision, the main subsidiary of CIECSA, showed an operating profit of
Ch$1,716 million, compared with an operating loss of Ch$397 million in the
previous year. Megavision had a 24.6% share of the audience during the
period.(1) Net sales increased by 40.1% totaling Ch$9,594 million because of
the live programs. As of June 2002, Megavision had a net profit of Ch$507
million, compared to a loss of Ch$916 million in 2001. CIECSA's final result
was a profit of Ch$308 million compared to a loss of Ch$909 million the year
before.
Envases CMF S.A. showed a net loss of C0h$403 million in 2002 compared with a
profit of Ch$128 million in 2001. The company increased its sales 144%,
reaching Ch$14,835
_______________
(1) Measured between 9:00 A.M. and 1:00 A.M. (in other words 16 hours a day)
from Monday to Sunday.
-97-
million during the year. This significant increase in sales is largely
attributable to the partnership entered into with Multipack at the end of Junee
2001. Sales volume increased 97%, reaching 10,643 tons. Operating profit was
Ch$718 million, which is 43% higher than the profit obtained during 2001.
The non-operating profit of the company declined from Ch$352 million in 2001 to
Ch$1,188 million in 2002. The higher loss is mainly due to an increase of the
financial expenses corresponds to the recourse obtained for the financing of
the joint venture of Crowpla-Reicolite with Multipack.
In the area of cable TV, Cristalchile Comunicaciones S.A. (99.99% subsidiary
of Cristalerias), is the owner of 50% of Cordillera Comunicaciones Ltda.,
which in turn is the owner of 99% of Metropolis-Intercom S.A.
Metropolis-Intercom S.A. registered sales of Ch$22,538 million during 2002
compared with Ch$22,303 million during the same period the previous year. As
of June 2002, Metropolis-Intercom had a net loss of Ch$7,582 million compared
with a loss of Ch$7,277 million in 2001. This result includes a depreciation
charge of Ch$5,484 million (Ch$5,317 million in 2001) corresponding to the HFC
network adquired in July 2000. The company ended the period with 239,000
subscribers, 14.6% down compared to the same date in 2001, due to a greater
number of discontinued subscriptions because of the deteriorated domestic
economic situation.
As a result of the foregoing and the amortization of the lower value of
investments through Cordillera Comunicaciones from $2,010 million in the
quarter ($1,997 million in 2001), Cristalchile Comunicaciones recorded a net
loss of $4,806 million (loss of $4,604 in the first quarter of 2001).
4. CASH FLOW STATEMENT
During the first quarter of 2002 a total net positive flow of Ch$10,099
million was generated, which is explained by a positive flow generated by
operating activities of Ch$15,807 million, which was reduced by a negative
financing flow of Ch$6,092 million and a positive flow of investment
activities of Ch$384 million.
The operating flow corresponds basically to the collection of sales, dividends
recovered and financial interests that were reduced by payment to suppliers,
interests and income tax.
The financing flow can be explained mainly by payment of dividends for
Ch$3,073 million in January and April 2002.
The investment flow is mainly explained by the redemption of Term Deposits at
over 90 days and the expiry of future contracts. This flow was used in part in
the incorporation of fixed assets and in the investment of financial
instruments.
The foregoing results in an increase in the final balance of cash and cash
equivalent, which passed from Ch$18,626 million as of December 31, 2001 to
$28,563 million as of June 30, 2002.
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.
-98-
5. INTEREST RATES AND EXCHANGE RATE RISK ANALYSIS
a. 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$100 million, which was agreed
at a variable rate Libo plus 1.125 percentage points on average. On the other
hand, as of June 30, 2002 the Company had available funds of $36,837 million
invested at different terms in instruments like term deposits, bonds, fixed
rate and repurchase agreement mutual funds.
The company does not use derivative financial instruments at the present time
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.
The Company maintains liabilities in dollars of US$111.9 million, which
represent 25.1% of its assets, and include a long-term syndicated loan of
US$100 million. As of June 30 the Company has investments in dollars of US$44.4
million in term deposits, bonds and fixed rate mutual funds. It also has
dollar purchase contracts of US$119.6 million, and a contract that provides
coverage for Euro/Dollar fluctuations for 3.5 million Euros, all of which
provides a reasonable coverage for exchange rate variations risk.
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RELEVANT EVENTS
There are no in this item.
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ab
SIGNATURES
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, in the city of Santiago, Chile.
CRISTALERIAS DE CHILE S.A.
By: /s/ Benito Bustamante C.
--------------------------
Benito Bustamante C.
Comptroller
Date: October 8, 2002.