SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
October 20, 2004
Commission File Number 1-12752
Glassworks of Chile
(Translation of registrant's name into English)
Hendaya 60
Las Condes
Santiago, Chile
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): ______
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes [ ] No [X]
NYSE: CGW
Santiago: CRISTALES
www.cristalchile.com
CONTACT IN SANTIAGO:
Ricardo Dunner
Head of Investor Relations
PH: (562) 787-8855
FAX: (562) 787-8800
EMAIL: ir@cristalchile.cl
FECU (Standardized Quarterly Financial Report)
1. IDENTIFICATION
1.01.05.00 Firm Name
CRISTALERIAS DE CHILE S.A.
1.01.04.00 Company RUT 90331000-6
1.00.01.10 Starting date 1/1/2004
1.00.01.20 Closing date 6/30/2004
1.00.01.30 Type of Currency Chilean Pesos
1.00.01.40 Type of Financial Statements Individual
Independent Auditors' Report
Refered to Interim Individual Financial Statements
As of June 30, 2004
To the Shareholders and Directors of
Cristalerias de Chile S.A.:
1. We have revised the general balance sheets of Cristalerias de Chile S.A.
as of June 30, 2004 and 2003 and the corresponding statements of income
and cash flows for the six months periods ended on those dates. These
financial statements and their corresponding notes are the responsibility
of Cristalerias de Chile S.A.'s management. The Ratio Analysis and
Relevant Events attached are not part of these financial statements;
therefore this report does not extend to them.
2. We have effected our revisions in accordance with audit norms established
in Chile for a revision of interim financial information. A revision of
interim financial information consists mainly in applying analytic
revision procedures of the financial statements and effect inquiries to
the responsible financial and accounting personnel. The extent of this
revision is substancially lower than an audit effected according to
generally accepted accounting principles in Chile, in which case the
objective is to express an opinion on financial statements as a whole.
Consequently, the interim financial statements as of June 30 2004 and 2003
have not been audited and, therefore, we are not in condition for
expressing, nor we express an opinion.
3. The refered interim financial statements have been prepared to reflect the
individual financial situation of Cristalerias de Chile S.A., based on
criteria described in Note 2 b), prior to consolidation, line by line, of
subsidiaries detailed in Note 14's financial statements. Consequently, for
an adequate interpretation, these individual interim financial statements
must be read and analyzed together with the consolidated interim financial
statements of Cristalerias de Chile S.A. and subsidiaries, which are
required by the generally accepted accountinbg principles in Chile. This
report is presented solely to inform and be used by the Board and
Management of Cristalerias de Chile S.A. and by the Chilean Securities and
Insurance Commission (SVS).
4. Based on our revision of the interim financial statements as of June 30,
2004 and 2003, we have no knowledge of significant adjustments needed to
be made to them in order for them to be in accordance with principles
described in Note 2 b).
Ruben Lopez D. Ernst & Young Ltda.
R.U.T.: 9.385.460-8 Auditors' R.U.T.: 77.802.430-6
Santiago, July 28 2004
ASSETS
2.0 FINANCIAL STATEMENTS
2.01 BALANCE SHEET
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
ASSETS NOTE No. 06-30-04 06-30-03
5.11.00.00 TOTAL CURRENT ASSETS 108,300,902 103,843,808
5.11.10.10 Cash 1,471,566 1,805,117
5.11.10.20 Time deposits 41 5,004,267 10,445,036
5.11.10.30 Marketable securities (net) 4 59,615,681 58,750,126
5.11.10.40 Debtors from sales (net) 5 18,766,519 14,697,104
5.11.10.50 Documents receivable (net) 5 995,423 1,673,336
5.11.10.60 Sundry debtors (net) 5 828,330 675,327
5.11.10.70 Doc. & accts receivable 6 4,892,084 2,167,143
related Co.
5.11.10.80 Inventories (net) 7 6,978,729 6,682,527
5.11.10.90 Recoverable taxes 8 1,126,358 1,276,166
5.11.20.10 Prepaid expenses 339,649 334,727
5.11.20.20 Deferred taxes 8 843,755 362,459
5.11.20.30 Other current assets 10-11 7,438,541 4,974,740
5.11.20.40 Leasing contracts (net) 0 0
5.11.20.50 Leasing assets (net) 0
5.12.00.00 TOTAL FIXED ASSETS 75,449,358 80,614,276
5.12.10.00 Land 12 1,514,725 1,510,424
5.12.20.00 High rises & infrastructure 12 23,286,000 22,585,524
5.12.30.00 Machinery & equipment 12 105,768,357 102,739,721
5.12.40.00 Other fixed assets 12 8,515,021 6,914,445
5.12.50.00 Positive goodwill from
technical
revaluation of fixed 12 6,659,823 7,767,850
assets
5.12.60.00 Depreciation (minus) 12 (70,294,568) (60,903,688)
5.13.00.00 TOTAL OTHER ASSETS 181,194,501 182,044,554
5.13.10.10 Investment in related companies 14 145,666,038 144,970,802
5.13.10.20 Investment in other companies 0 0
5.13.10.30 Negative goodwill 16 1,821,374 1,992,171
5.13.10.40 Positive goodwill (minus) 0 0
5.13.10.50 Long-term debtors 5 119,106 151,965
5.13.10.60 Doc. & accts receivable 6 22,007,684 21,994,506
related Co.
5.13.10.65 Long-term deferred taxes 0 0
5.13.10.70 Intangibles 0 0
5.13.10.80 Amortization (minus) 0 0
5.13.10.90 Other 18 11,580,299 12,935,110
5.13.20.10 Long-term leasing contracts 0 0
(net)
5.10.00 TOTAL ASSETS 364,944,761 366,502,638
LIABILITIES
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
LIABILITIES NOTE No. 06-30-04 06-30-03
5.21.00.00 TOTAL CURRENT LIABILITIES 18,639,661 20,276,257
5.21.10.10 Short-term oblig. Banks & 0 0
Fin. Inst.
5.21.10.20 Short-term portion - Long-term
oblig. Banks & 19 139,500 156,829
Financial Institutions
5.21.10.30 Obligations with the public 0 0
(notes)
5.21.20.40 Short-term portion oblig with 1,688,964 1,683,436
public
5.21.10.50 Long-term oblig. due within 1 0 0
year
5.21.10.60 Dividends payable 651,595 509,838
5.21.10.70 Accounts payable 2,251,469 3,410,613
5.21.10.80 Notes payable 2,580,225 3,316,315
5.21.10.90 Sundry creditors 835,577 1,008,139
5.21.20.10 Notes & accts payable related 6 941,564 676,521
Co.
5.21.20.20 Provisions 23 7,170,405 4,128,088
5.21.20.30 Withholdings 661,448 390,574
5.21.20.40 Income tax 0 0
5.21.20.50 Earned income 0 0
5.21.20.60 Deferred taxes 0 0
5.21.20.70 Other current liabilities 34 1,718,914 4,995,904
5.22.00.00 TOTAL LONG-TERM LIABILITIES 110,912,860 115,212,025
5.22.10.00 Oblig with Banks & Financial 21 31,815,000 35,165,736
Inst.
5.22.20.00 Long-term oblig with public 69,761,295 69,951,855
(bonds)
5.22.30.00 Long-term notes payable 0 0
5.22.40.00 Long-term sundry debtors 162,254 186,544
5.22.50.00 Long-term notes & accts.
payable 6 0 0
related companies
5.22.60.00 Long-term provisions 23 6,417,630 7,578,300
5.22.70.00 Long-term deferred taxes 8 2,756,681 2,329,590
5.22.80.00 Other long-term liabilities 0 0
5.23.00.00 MINORITY INTEREST 0 0
5.24.00.00 TOTAL EQUITY 235,392,240 231,014,356
5.24.10.00 Paid-in capital 27 65,396,749 65,137,753
5.24.20.00 Reserve capital revaluation 27 523,174 716,515
5.24.30.00 Premium in sale of own shares 27 28,097,372 28,069,388
5.24.40.00 Other reserves 27 7,499,397 9,155,080
5.24.50.00 Retained earnings (addition
of codes 5.24.51.00 to
5.24.56.00) 27 133,875,548 127,935,620
5.24.51.00 Reserve future 27 128,030,273 125,943,731
dividends
5.24.52.00 Accrued profits 27 0 0
5.24.53.00 Accrued losses 0 0
(minus)
5.24.54.00 Profit (loss) 27 7,125,275 2,957,649
for the year
5.24.55.00 Prov. dividends (1,280,000) (965,760)
(minus)
5.24.56.00 Accr. deficit 27 0 0
dev. period
5.20.00.00 TOTAL LIABILITIES 364,944,761 366,502,638
INCOME STATEMENT
2.02 INCOME STATEMENT
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
INCOME STATEMENT NOTE No. 06-30-04 06-30-03
5.31.11.00 OPERATING RESULTS 10,135,406 9,685,489
5.31.11.10 Gross Margin 12,897,397 12,206,668
5.31.11.11 Sales 33,297,866 33,524,221
5.31.11.12 Costs (20,400,469) (21,317,553)
(minus)
5.31.11.20 Adm. & sales expenses (2,761,991) (2,521,179)
(minus)
5.31.12.00 NON-OPERATING RESULTS (1,449,153) (5,986,197)
5.31.12.10 Interest income 905,688 1,539,550
5.31.12.20 Income from invmnts 14 3,248,046 2,770,301
Rel. Co.
5.31.12.30 Other non-operating 28 302,039 198,321
income
5.31.12.40 LOSS invmnts Rel. Co. (4,042,363) (3,468,270)
(-)
5.31.12.50 Amortization 16 (86,391) (86,306)
neg.goodwill (-)
5.31.12.60 Interest expenses (2,392,823) (2,484,021)
(minus)
5.31.12.70 Other non-operat 28 (498,015) (449,378)
expenses (-)
5.31.12.80 Price level 29 (276,582) (388,966)
restatement
5.31.12.90 Exchange differences 30 1,391,248 (3,617,428)
5.31.10.00 RESULTS BEFORE INCOME TAX 8,686,253 3,699,292
AND EXTRAORDINARY ITEMS
5.31.20.00 INCOME TAX 8 (1,560,978) (741,643)
5.31.30.00 EXTRAORDINARY ITEMS 0 0
5.31.40.00 PROFIT (LOSS) BEFORE 7,125,275 2,957,649
MINORITY INTEREST
5.31.50.00 MINORITY INTEREST 0 0
5.31.00.00 NET INCOME (LOSS) 7,125,275 2,957,649
5.32.00.00 Amortization of positive goodwill 16 0 0
5.30.00.00 INCOME (LOSS) FOR THE YEAR 7,125,275 2,957,649
DIRECT CASH FLOW STATEMENT
2.03 CASH FLOW STATEMENT
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
DIRECT CASH FLOW STATEMENT NOTE No. 06-30-04 06-30-03
5.41.11.00 NET FLOW FROM OP. ACT. 18,827,455 17,226,182
5.41.11.10 Collection from sales debtors 42,923,558 46,037,878
5.31.11.20 Interests received 4,190,264 2,082,963
5.31.11.30 Dividends & other distributions 1,722,636 1,656,121
funds received
5.31.11.40 Other income 277,394 1,195,234
5.31.11.50 Payments to suppliers & (23,836,693) (26,462,157)
personnel (-)
5.31.11.60 Interest paid (minus) (2,201,738) (2,329,031)
5.31.11.70 Income tax paid (minus) (1,043,041) (1,528,046)
5.31.11.80 Other expenses 33 (195,194) (2,116,900)
5.31.11.90 V.A.T. & other taxes (3,009,731) (1,309,880)
5.41.12.00 CASH FLOW FINANCING ACTIVITIES (2,589,534) (6,840,195)
5.41.12.05 Proceeds from share issue 0 0
5.41.12.10 Loans received 0 0
5.41.12.15 Obligations with the public 0 0
5.41.12.20 Secured loans from related 0 0
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) (2,589,534) (6,840,195)
5.41.12.40 Capital distributions (minus) 0 0
5.41.12.45 Repayment of loans (minus) 0 0
5.41.12.50 Payment of obligations with the 0 0
public (-)
5.41.12.55 Repayment of secured loans from 0 0
rel Co. (-)
5.41.12.60 Repayment other loans from 0 0
related Co. (-)
5.41.12.65 Share issue payment (minus) 0 0
5.41.12.70 Payment of issue publ oblig 0 0
(minus)
5.41.12.75 Other financing payments (minus) 33 0 0
5.41.13.00 CASH FLOW FROM INVESTING ACTIVITIES (7,118,517) (12,523,216)
5.41.13.05 Sale of fixed assets 48,951 110,236
5.41.13.10 Sale of permanent investments 0 0
5.41.13.15 Sale of other investments 33 0 0
5.41.13.20 Proceeds secured loans to 0 2,468,018
related Comp.
5.41.13.25 Proceeds other loans to related 0 0
companies
5.41.13.30 Other investment income 33 0 1,476,576
5.41.13.35 Incorporation of fixed assets (3,355,855) (15,312,980)
(minus)
5.41.13.40 Capitalized interests payment 0 0
(minus)
5.41.13.45 Permanent Investments (minus) (197) (603,804)
5.41.13.50 Investments in financial 0 0
instruments (minus)
5.41.13.55 Other loans to related companies (3,804,928) (7,523)
(minus)
5.41.13.60 Other loans to related companies (6,488) (25,931)
(minus)
5.41.13.65 Other distrib of funds on invest 33 0 (627,808)
activities (-)
5.41.00.00 TOTAL NET CASH FLOW FOR THE PERIOD 9,119,404 (2,137,229)
5.42.20.00 EFFECT OF INFLATION ON CASH & CASH EQUIV. (583,131) (911,569)
5.41.00.00 NET CHANGE IN & CASH EQUIVALENT 8,536,273 (3,048,798)
5.42.00.00 CASH & CASH EQUI AT BEGINNING OF PERIOD 60,479,914 74,512,489
5.43.00.00 CASH & CASH EQUIV BALANCE AT END OF PERIOD 69,016,187 71,463,691
INCOME STATEMENT RECONCILIATION
CONCILIATION BETWEEN CASH FLOW GENERATED BY THE OPERATION'S
ACTIVITIES AND THE INCOME STATEMENT FOR THE YEAR
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
CASH FLOW - INCOME STATEMENT RECONCILIATION NOTE No. 06-30-04 06-30-03
5.50.10.00 Profit (Loss) for the year 7,125,275 2,957,649
5.50.20.00 Profit in sale of assets (8,589) (3,687)
5.50.20.10 (Profit) Loss in sale of fixed assets (8,589) (3,687)
5.50.20.20 Profit in sale of investments (minus) 0 0
5.50.20.30 Loss in sale of investments 0 0
5.50.20.40 (Profit) Loss in sale of other assets 0 0
5.50.30.00 Non-cash losses (gains) 11,622,754 12,957,524
5.50.30.05 Depreciation for the year 12 5,248,805 4,671,670
5.50.30.10 Amortization of intangibles 412,961 420,455
5.50.30.15 Write-offs and provisions 2,179,244 386,663
5.50.30.20 Accrued earnings from investments in 14 (3,248,046) (2,770,301)
related companies (minus)
5.50.30.25 Accured losses from investments in 14 4,042,363 3,468,270
related Co.
5.50.30.30 Negative goodwill amortization 16 86,391 86,306
5.50.30.35 Positive goodwill amortization (minus) 0 0
5.50.30.40 Price level restatement 29 276,582 388,966
5.50.30.45 Net exchange difference 30 (1,391,248) 3,617,428
5.50.30.50 Other non-cash credits to results (minus) (324,671) (66,274)
5.50.30.55 Other non-cash debits to results 4,340,373 2,754,341
5.50.40.00 Changes in Assets affecting cash flow (incr) (1,616,989) (2,530,811)
decreases
5.50.40.10 Debtors from sales 311,356 3,768,875
5.50.40.20 Inventory (2,191,980) (1,276,232)
5.50.40.30 Other assets 263,635 38,168
5.50.50.00 Changes in liabilities affecting cash flow 1,705,004 (1,216,115)
increases (decr)
5.50.50.10 Accounts payable related to results for 295,908 (418,113)
the year
5.50.50.20 Interests payable (12,009) (71,363)
5.50.50.30 Income tax payable (net) 999,181 (114,155)
5.50.50.40 Other accounts payable related to 509,336 (372,279)
non-oper results
5.50.50.50 VAT and other taxes payable (net) (87,412) (240,205)
5.50.60.00 Profit (Loss) of minority interest 0 0
5.50.00.00 NET OPERATING CASH FLOW 18,827,455 17,226,182
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 No. 061 and it is
supervised by the Chilean Securities and Insurance Commission (SVS).
02. Applied Accounting Criteria
APPLIED ACCOUNTING CRITERIA
a) Accounting Period
These financial statements correspond to the period between January 1 and June
30 of 2004 and 2003.
b) Preparation basis of financial statements:
These individual financial statements as of June 30, 2004 and 2003 have been
prepared on the basis of generally accepted accounting principles and specific
norms issued by the SVS, with the former prevailing in case of discrepancies.
Investments in subsidiaries are registered in a single line of the general
balance sheet at their proportional equity value (VPP) and therefore, have not
been consolidated line to line. This treatment does not modify the net result
of the fiscal year nor the equity.
These financial statements have been emitted solely for the effect of doing an
individual analysis of the company and, in consideration to it, they must be
read together with the consolidated financial statements, which are required
by the generally accepted accounting principles in Chile.
c) Presentation Basis
For comparison purposes, the financial statements and figures included in the
disclosures for the 2004 fiscal year are presented updated according to
non-accounting terms as of June 30, 2004 by 0.6%.
d) Price Level Restatement
Financial statements have been corrected monetarily on the basis of
considering the variation in the purchasing power of the currency which
occurred in the 2004 fiscal year, which was 0.8% (1.1% in 2003).
For financial matters, effective variations occurred during each month of 2004
and 2003 have been considered, with respect to June 2004 and 2003. For tax
matters, negative variations occurred in some months of 2003 and 2004, with
respect to June 2003 and 2004, have been equaled to zero, in accordance with
instructions from the Chilean Internal Revenue Service (SII), not affecting
significantly the financial statements.
e) Conversion Basis
Balances in foreign currency and indexed currency units have been converted to
pesos at the indicated parities:
2004 2003
Ch$ Ch$
U.S. Dollar 636.30 699.12
Pound Sterling 1,157.12 1,157.48
Swiss Franc 509.16 517.18
EURO 775.88 803.86
Unidad de Fomento 17,014.95 16,959.67
f) Marketable Securities and Time Deposits
Transactions in fixed income instruments are shown at the return value of the
investment, which does not exceed the market value as of June 30, 2004.
Investments in stock are shown at the lowest value between the corrected cost
and market value.
Time deposits are shown at the value of the investment, plus adjustments and
interest accrued as of the date of the fiscal year.
Mutual fund investment quotas are valued at the liquidation price of each
period.
g) Inventory
Inventory of finished products has been valued as of June 30, 2004 and 2003 at
the direct production cost, duly updated, and raw materials and materials at
the cost of the last purchase or its corrected cost. Those valuations do not
exceed the net liquidation value.
h) Bad Debts (Uncollectables)
The company has 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, 2004 and 2003.
j) Depreciation of Fixed Assets
Depreciation of this property is calculated on updated values, according to
the straight-line depreciation system, considering the estimated useful life
of the property.
k) Assets in Leasing
None.
l) Sales Transactions with Leaseback
None.
m) Intangibles
At June 30, 2004 and 2003 there was no balance for this item.
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 (Net Worth Proportional Value or "VPP"),
according to procedures established for these purposes by circulars No. 368
and No. 1,697 of the Securities and Insurance Commission.
o) Negative and Positive Investment Goodwill:
Negative and positive investment goodwill have arisen when comparing the price
paid for the investment made and the proportional value that corresponds to
that investment in the net worth of the company.
Those values are amortized over a twenty-year period.
At June 30, 2004 and 2003 there was no positive investment goodwill.
p) Operations with buyback and sellback agreement
Financial instruments acquired with a sellback agreement are shown at their
purchase value plus interest and adjustments accrued at the closing of the
fiscal year, and they are classified in Other Current Assets, in the terms
established in Circular No. 768 of the Securities and Insurance Commission.
q) Deferred Taxes and Income Tax
The company has complied with deferred taxes, in accounting terms, as
established in Technical Bulletin No. 60 and the norms indicated in Circular
1,466 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 company has established a reserve for all of the personnel's severance
payment, according to the union contracts signed with their workers. This
reserve is shown at the present value of the obligation.
s) Sales
The company recognizes the income from sales on an accrued basis according to
generally accepted accounting principles in Chile.
t) Derivative Contracts
The company maintains Future contracts in foreign currency, which have been
recorded as established in Technical Bulletin No. 57 of the Accountants
Association of Chile A.G.
u) Computer Software
The company develops computer software with its own resources, and it also
acquires computer packages from third parties. Disbursements for its own
development are charged to results as they are generated. Computer packages
are recorded in Fixed Assets and amortized in 36 months.
v) Research and Development Expenses
The company registers expenses for this concept directly to results, as they
generate.
w) Cash Flow Statement:
According to current regulations of the Securities and Insurance Commission
and the Accountants Association of Chile, in preparing the cash flow
statement, the Company has considered time deposits, fixed rate mutual fund
investments and deposits with maturities under 90 days as cash.
Such cash flows related to the Company's line of business, interest paid,
interest income received, dividends received, and all such that is not defined
as investment or Financing is included under the heading "Flow Originating in
Activities of the Operation."
Income by term deposits and agreement with maturity more than 90 days has been
clasified in the item "Investments in Financial Instrument"
03. Accounting Changes
As of June 30 2004 and 2003, there have not been any changes in the accounting
criteria that affect the individual financial statements.
04. Marketable Securities
At June 30, 2004, this item is composed by the following investments:
a) Th$55,251,502 investments in bonds and Fixed Rate Instruments equivalent
to US$ 41,048,455 and 37,547,521 EUROS; which mainly corresponds to
investments in state bonds and financial institutions in USA, Germany and
Holland; Collateralized Bonds of Private Companies in USA (with accounts
receivable guarantee) and USA Mortgage Bonds with state guarantee.
b) Th Ch$ 4,187,786 in shares.
c) Th Ch$ 176,393 in interest accrued in Celulosa Arauco S.A. bonds.
At June 30, 2003, there were the following investments:
a) Th$54,372,053 investments in bonds and Fixed Rate Instruments; which
mainly corresponds to investments in state bonds and financial
institutions in USA, Germany, and Holland; Collateralized Bonds of
Private Companies in USA (with accounts receivable guarantee) and USA
Mortgage Bonds with state guarantee.
b) Th Ch$ 4,183,939 in shares.
c) Th Ch$ 194,134 in accrued interest in Celulosa Arauco S.A. bonds.
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - BALANCE COMPOSITION
Type of Security Book Value
06-30-2004 06-30-2003
Shares 4,187,786 4,183,939
Bonds 0 0
Mutual fund quotas 0 0
Investment fund quotas 0 0
Public tender promissory notes 0 0
Mortgage bonds 0 0
Fixed rate instruments and bonds 55,251,502 54,372,053
Acrrued interest in Celulosa Arauco 176,393 194,134
S.A. bonds
Total Marketable Securities 59,615,681 58,750,126
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. 63,642,856 9.9980 85 5,409,643 4,187,786
Value Investment Portfolio 5,409,643 4,187,786
Adjustment Reserve 0
Book value, Investment Portfolio 4,187,786
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - FIXED RATE
INSTRUMENTS
Type of Security Par Book Value Market Reserve
Value Value
Amount Rate %
Financial Institutions bonds (USA, Germany and Holland) (1) 29,132,371 29,132,371 1.17 29,132,371 0
USA treasure bonds (2) 20,555,448 20,555,448 0.38 20,555,448 0
Mortgage bonds USA (with state guarantee) (2) 5,549,780 5,549,780 0.38 5,549,780 0
Call Deposit (2) 13,903 13,903 0.38 13,903 0
Celulosa Arauco Bonds (Interests) (2) 176,393 176,393 2.80 176,393
TOTAL 55,427,895 55,427,895 55,427,895 -
Note:
(1) The investement has been made in EUROS
(2) The investement has been made in U.S. Dollar
(3) Rate for period from 01-01-2004 to 06-30-2004.
(4) The investment can be rescued within a 48 hour warning.
05. Short-Term and Long-Term Debtors
At June 30, 2004 and 2003 there are balances of short-term debtors of Th Ch$
20,590,272 and Th Ch$ 17,045,767 respectively.
There is also a balance of Th Ch$ 119,106 for Long-Term debtors in 2004 (Th
Ch$ 151,965 in 2003).
At June 30, 2004 and 2003 the company has established a reserve for bad debts
of Th Ch$ 143,127 in 2004 (Th Ch$ 143,986 in 2003), which is deducted from
Debtors for Sales and documents receivable.
The balance of Short-term Debtors is shown net of reserve for bad debtors and
customer advances.
CRISTALERIAS DE CHILE S.A.
NOTE 5 - SHORT AND LONG TERM DEBTORS
Current Assets
Over 90 days
Area Up to 90 days up to 1 year
06-30-2004 06-30-2003 06-30-2004 06-30-2003
Debts from Sales 17,897,634 14,104,583 1,012,012 736,507
Estimate of non-collectable debt - - - -
Documents receivable 947,335 1,608,188 48,088 65,148
Estimate of bad debtors - - - -
Misc. Debtors 395,818 639,915 432,512 35,412
Estimate of bad debtors - - - -
Long Term
Area Subtotal Total Current (net)
06-30-2004 06-30-2003 06-30-2004 06-30-2003
Debts from Sales 18,909,646 18,766,519 14,697,104 0 0
Estimate of non-collectable debt 143,127 - - - -
Documents receivable 995,423 995,423 1,673,336 0 0
Estimate of bad debtors 0 - - - -
Misc. Debtors 828,330 828,330 675,327 119,106 151,965
Estimate of bad debtors - - - - -
Total Long Term 119,106 151,965
Debtors
06. Balances and Transactions with related entities
I. Balances receivable in the Short-Term as of June 30, 2004 and 2003 are in
the amount of Th Ch$ 4,892,084 and Th Ch$ 2,167,143 respectively. In the
Long-Term a balance of Th Ch$ 22,007,684 and Th Ch$ 21,994,506
respectively, is recorded, of which Th Ch$ 20,037,623 in 2004 (19,964,196
in 2003) correspond to shares sold of Rayen Cura S.A.I.C. to the
subsidiary Cristalchile Inversiones S.A., equivalent to UF 1,177,648,
without interests; and Th Ch$ 867,762 in 2004 (Th Ch$ 2,030,310 in 2003)
correspond to a balance of loan granted to Red Televisiva Megavision S.A.
1. Detail of Credits receivable:
a. Loan to Red Televisiva Megavision S.A.; 2.49% annual rate,
adjutabbility in UF.
05.07.2006 UF17,000 ThCh$289,254
05.01.2007 UF17,000 ThCh$289,254
05.07.2007 UF17,000 ThCh$289,254
b. Loan to Metropolis Intercom S.A.; annual rate 3% in pesos.
09.06.2005 ThCh$2,704,725 short term
18.04.2006 ThCh$ 855,171 long term
2. There are balances for sales invoicing with the following related
companies with maturity under 90 days:
2004 2003
Th Ch$ ThCh$
S.A. Vina Santa Rita 1,868,019 1,881,621
Vina Carmen S.A. 2,355 0
Vina Los Vascos S.A. 205,021 184,174
Servicios y Consultorias Hendaya S.A. 3,309 0
Rayen Cura S.A.I.C. 83,738 85,526
Vina Dona Paula S.A. 23,556 0
Total 2,185,998 2,151,321
In addition, as of June 2003 there was a balance receivable for a loan granted
to Cristalchile Comunicaciones S.A. for ThCh$15,822.
II. Balances payable in the short term amount Th Ch$ 941,564 in 2004, and
ThCh$ 676,521 in 2003, that correspond mainly to invoicing with maturity
under 90 days:
2004 2003
Th Ch$ ThCh$
S.A. Vina Santa Rita 155,186 146,801
Envases CMF S.A. 0 37
Ediciones Financieras S.A. 0 1,603
Vina Los Vascos S.A. 4,048 10,587
Cia. Electrometalurgica S.A. 0 1,064
Servicios y Consultorias Hendaya S.A. 103,315 85,701
Marketing Meter Ltda. 1,879 0
Total 264,418 245,793
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
06-30-2004 06-30-2003 06-30-2004 06-30-2003
86547900-K S.A. VINA SANTA RITA 1,868,019 1,881,621 0 0
79952350-7 RED TELEVISIVA MEGAVISION S.A. 0 0 867,762 2,030,310
89150900-6 VINA LOS VASCOS S.A. 205,021 184,174 0 0
96721580-5 CRISTALCHILE COMUNICACIONES S.A. 1,361 15,822 0 0
96972440-5 CRISTALCHILE INVERSIONES S.A. 0 0 20,037,623 19,964,196
83032100-4 SERV. Y CONSULTORIAS HENDAYA S.A. 3,309 0 0 0
87941700-7 VINA CARMEN S.A. 2,355 0 0 0
96787750-6 METROPOLIS INTERCOM S.A. 2,704,725 0 855,171 0
78936090-1 INMOB. Y CONSTRUCTORA MONTE AZUL S.A. 0 0 247,128 0
0-E VINA DONA PAULA S.A. 23,556 0 0 0
0-E RAYEN CURA S.A.I.C. 83,738 85,526 0 0
TOTAL 4,892,084 2,167,143 22,007,684 21,994,506
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
06-30-2004 06-30-2003 06-30-2004 06-30-2003
86547900-K S.A. VINA SANTA RITA 155,186 146,801 0 0
89150900-6 VINA LOS VASCOS S.A. 4,048 10,587 0 0
96972440-5 CRISTALCHILE INVERSIONES S.A. 7,947 9,298 0 0
96721580-5 CRISTALCHILE COMUNICACIONES S.A. 948 0 0 0
96539380-3 EDICIONES FINANCIERAS S.A. 0 1,603 0 0
86755600-1 BAYONA S.A. 118,251 89,220 0 0
96608270-4 CIECSA S.A. 813 3,549 0 0
86881400-4 ENVASES CMF S.A. 0 37 0 0
90320000-6 CIA. ELECTROMETALURGICA S.A. 435,600 329,725 0 0
83032100-4 SERV. Y CONSULTORIAS HENDAYA S.A. 216,902 85,701 0 0
77658870-9 MARKETING METER LTDA. 1,869 0 0 0
TOTAL 941,564 676,521 0 0
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
TRANSACTIONS
06-30-2004 06-30-2003
Company R.U.T. Relationship Description of Amount Effect on Amount Effect on
Transaction Results Results
(Debit/Credit) (Debit/Credit)
CRISTALCHILE 96721580-5 Affiliate Adjustment 3 3 195 195
COMUNICACIONES S.A..
CRISTALCHILE INVERSIONES 96972440-5 Affiliate Loan refund 0 0 1,863,628 0
S.A.
Affiliate Adjustment 111,818 111,818 262,634 262,634
S.A VINA SANTA RITA 86547900-K Affiliate Marketing 0 0 34,204 34,204
Affiliate Direct sales 2,804,231 689,129 2,828,239 654,883
Bottles
Affiliate Direct Sales 268,406 0 224,787 0
Packages
Affiliate Material 254,713 751 214,726 35,868
Purchase
Affiliate Vine Leasing 15,873 15,873 57,000 57,000
Affiliate Received 642,943 0 1,515,616 0
Dividends
SERV. Y CONS. HENDAYA 83032100-4 Controlling Received 518,655 -518,655 520,120 -520,120
S.A. stockholder services
Controlling Given services 9,563 9,563 10,549 10,549
stockholder
SERV. Y CONS. HENDAYA 90320000-6 Controlling Dividends paid 228,310 0 613,337 0
S.A. stockholder
CLARO Y CIA. 79753810-8 With the Chairman Legal assesment 15,954 -15,954 23,945 -23,945
NAVARINO S.A. 96566900-0 Indirect Given services 5,062 5,062 5,074 5,074
subsidiary
QUEMCHI S.A. 96640360-8 Indirect Loaned services 5,076 5,076 5,708 5,708
affiliate
CIA. SUDAMERICANA DE 90160000-7 Indirect Freight 82,982 0 194,324 0
VAPORES S.A. affiliate services
BAYONA S.A. 86755600-1 Controlling Dividends paid 237,684 0 638,519 0
stockholder
VINA LOS VASCOS S.A. 89150900-6 Indirect Direct sales 394,495 96,946 299,626 69,379
affiliate
Indirect Materials 27,972 0 16,542 0
affiliate purchased
EDICIONES FINANCIERAS 96793770-3 Indirect Received 3 -3 3,770 -3,770
S.A. affiliate services
RAYEN CURA S.A.I.C. 0-E Indirect Direct Sales 115,741 34,269 123,648 34,288
affiliate
CIA. ELECTROMETALURGICA 90320000-6 Controlling Dividends paid 875,556 0 2,352,111 0
S.A. stockholder
Controlling Materials 4,688 0 2,713 0
stockholder purchased
Controlling Payment for 0 0 281 0
stockholder own account
RED TELEVISIVA 79952350-7 Indirect Interests 27,463 27,463 74,153 74,153
MEGAVISION S.A. affiliate
Indirect Adjustment 4,842 4,842 33,177 33,177
affiliate
Indirect Loan refund 0 0 580,088 0
affiliate
Indirect Payment for 0 0 960 960
affiliate own account
Indirect Advertising 0 0 6,438 -6,438
affiliate
CIECSA S.A. 96608270-4 Adjustment 16 -16 49 -49
VINA CARMEN S.A. Land rent 2,354 2,354 0 0
CIA. ELECTROMETALURGICA 90320000-6 Controlling Payment for 0 0 382 0
S.A. stockholder own account
RED TELEVISIVA 79952350-7 Indirect Advertising 5,000 -5,000 6,438 -6,438
MEGAVISION S.A. affiliate
Indirect Loan refund 0 0 580,089 0
affiliate
Indirect Payment for 0 0 961 961
affiliate own account
METROPOLIS INTERCOM S.A. 96787750-6 Indirect Long-term loan 855,171 0 0 0
affiliate granted
Indirect Short-term 2,704,725 0 0 0
affiliate loan granted
INM. Y CONSTRUCTORA 78936090-1 Affiliate Loan granted 247,128 0 0 0
MONTE AZUL S.A.
07. Inventory
The balance as of June 30 2004 and 2003 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:
2004 2003
Th Ch$ Th Ch$
Finished Products 3,785,034 3,373,595
Raw Materials and Fuel 1,195,803 2,031,456
Materials and spare parts to be consumed 899,181 1,054,862
Materials in transit 1,098,711 222,614
TOTAL 6,978,729 6,682,527
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 year for Short-Term Assets, 4 years for Long-Term Assets, and 14
years for Long-Term Liabilities.
B) INCOME TAX
The Company established tax provisions of 17% of First Cateogry Income Tax in
2004 and 16.5% in 2003, and 35% as single tax under Art. 21, for the 2004 and
2003 fiscal years.
Credits against taxes are shown deducting the payable obligation.
The itemized list is the following:
2004 2003
Th Ch$ Th Ch$
Fiscal year income tax reserve (1,844,654) (571,924)
Single tax reserve (7,024) (4,880)
----------- -----------
SUBTOTAL (1,851,678) (576,804)
Credits:
Monthly reserve payments 865,132 1,380,120
Training expenditure 19,734 31,154
Credit fixed asset 0 0
Donations 0 0
V.A.T. to be recovered 0 208,161
----------- -----------
CREDIT SUBTOTAL 884,866 1,619,435
Income Tax Credit previous fiscal year 2,093,170 233,535
TOTAL TAXES TO BE ----------- -----------
RECOVERED 1,126,358 1,276,166
C) TAXABLE INCOME FUND
The Company had the following taxable income to be distributed:
2004 2003
Th Ch$ Th Ch$
Generated as of 12.31.1983:
Profit adjustment 1,930,833 1,930,833
Generated since 01.01.1984:
Without Credit 1,943,098 1,080,718
With 10% First Category Credit 22,785 22,875
With 15% First Category Credit 84,552,274 87,651,560
With 16% First Category Credit 14,535,934 16,256,265
With 15% Additional Rate Credit 722 728
With 16.5% First Category Credit 6,972,963 3,571,625
With 17% First Category Credit 10,955,060 0
----------- -----------
SUBTOTAL TAX PROFITS 118,982,836 108,583,771
Non-income revenues 6,852,415 6,879,852
TOTAL EARNINGS TO DISTR. 125,835,251 115,463,623
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
DEFERRED TAXES
06-30-2004
Item Asset Deferred Tax Liability Deferred Tax
Short term Long Term Short Term Long Term
Temporary Differences
Reserve non-collectable accounts 24,331 0 0 0
Expected revenue 0 0 0 0
Vacation reserve 65,521 0 0 0
Amortization intangibles 0 0 0 0
Leased assets 0 0 0 0
Manufacturing expenses 0 0 0 0
Fixed asset depreciation 0 0 0 4,710,735
Severance 2,008 155,299 0 0
Other events 0 0 0 0
Packaging reserve 215,059 0 0 0
Other reserve 0 0 0 0
Furnace repair reserve 339,507 358,000 0 0
Refractories obsolescence reserve 7,058 0 0 0
Spare parts obsolescence reserve 103,850 0 0 0
Deferred customs duties 104,236 20,991 0 74,722
Accumulated depreciation automoviles 0 19,288 0 0
Unrealized profit 38,988 10,836 0 0
Fixed asset, molds 0 0 0 229,338
Amortization lower value bonds 0 0 53,803 513,120
OTHERS
Complementary accounts-net amortization 0 6,703 0 2,213,523
Valuation reserve 0 0 - -
Total 897,558 557,711 53,803 3,314,392
06-30-2003
Item Asset Deferred Tax Liability Deferred Tax
Short term Long Term Short Term Long Term
Temporary Differences
Reserve non-collectable accounts 23,758 0 0 0
Expected revenue 0 0 0 0
Vacation reserve 51,394 0 0 0
Amortization intangibles 0 0 0 0
Leased assets 0 0 0 0
Manufacturing expenses 0 0 0 0
Fixed asset depreciation 0 0 0 4,575,869
Severance 1,973 37,924 0 0
Other events 0 0 0 0
Packaging reserve 189,513 0 0 0
Other reserve 0 110,194 0 0
Furnace repair reserve 0 568,415 0 0
Refractories obsolescence reserve 6,844 0 0 0
Spare parts obsolescence reserve 97,887 0 0 0
Deferred customs duties 2,708 485 0 82,405
Accumulated depreciation automoviles 0 15,888 0 0
Unrealized profit 42,401 2,840 0 0
Fixed asset, molds 0 0 0 270,444
Amortization lower value bonds 0 0 54,019 569,838
OTHERS
Complementary accounts-net amortization 0 16,265 0 2,449,485
Valuation reserve 0 - 0 0
Total 416,478 719,481 54,019 3,049,071
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
INCOME TAX
ITEM 06-30-2004 06-30-2003
Current tax costs (tax reserve) -1,851,678 -576,804
Adjustment tax cost (previous year) 0 0
Effect on assets or liabilities from deferred tax of fiscal year 422,514 -88,399
Tax benefit from tax losses 0 0
Effect of amortization of complementary accounts of deferred -131,814 -76,440
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 -1,560,978 -741,643
09. Short-term and long-term leasing contracts and leasing assets (note
required only for leasing companies defined in circular No. 939 of 1990).
As of June 30, 2004 and 2003, there are no transactions for this concept.
6 10. Other current assets
As of June 30, 2004, this item includes investments of Th Ch$ 7,112,460 in
investments in financial instruments, with resale agreements valued as stated
in note 2 p), corresponding to agreements in pesos of Th Ch$ 6,850,685 and Th
Ch$ 261,775 in agreements in US Dollars for less than 90 days.
Th Ch$ 326,081 also are included as expenses for issue and placement of bond
series C and D.
As of June 30, 2003, this item includes investments of Th Ch$ 4,647,352 in
financial instruments with resale agreements, valued as stated in note 2 p),
Th Ch$ 4,085,704 corresponding to agreements in pesos and Th Ch$ 561,648 to
agreements in US Dollars for less than 90 days.
Th Ch$ 327,388 also are included expenses for issue and placement of bond
series C and D.
11. Information on operations involving purchase agreements, sales
agreements, sale with buyback agreement, and purchase with sellback
agreement of commercial paper or bearer securities
Information about these transactions is presented on attached charts.
CRISTALERIAS DE CHILE S.A.
NOTE 11 - Information on operations involving purchase agreements, sales
agreements, sale with buyback agreement, and purchase with sellback
agreement of commercial paper or bearer securities
Sale Operations with buyback agreement (VRC) and Purchase with resale
agreement (CRV)
Code Dates Counterpart Original Price Rate Final Value Document ID Market
Currency Set Value
Start End
CRV 06.25.2004 07.01.2004 BCI CB Pesos 1,000,000 0.15 1,000,300 BCP-PDBC 1,000,250
CRV 06.25.2004 07.02.2004 BCI CB Pesos 1,650,000 0.15 1,650,578 BCP-PDBC 1,650,413
CRV 06.29.2004 07.05.2004 BCI CB Pesos 450,000 0.15 450,135 BCP-PDBC 450,022
CRV 06.30.2004 07.05.2004 SANTANDER INVESTMENT Pesos 760,000 0.16 760,203 BCD-CERO 760,000
CRV 06.30.2004 07.06.2004 SANTANDER INVESTMENT Pesos 1,500,000 0.16 1,500,480 BCD-ZERO-PRD 1,500,000
CRV 06.30.2004 07.07.2004 SANTANDER INVESTMENT Pesos 1,490,000 0.16 1,490,556 BCO-CERO-PRC 1,490,000
CRV 06.30.2004 07.07.2004 SANTANDER AGENTE VALORES Dollar 261,775 1.50 261,851 BCD-BCP-CHI 261,775
12. Fixed Assets
Fixed Assets:
The Fixed Assets are shown at purchase cost plus the legal and regulatory
revaluations accumulated as of June 30, 2004 and 2003.
The items that make up the Company's fixed assets as of June 30, 2004 and 2003
include mainly Land, Industrial Constructions, Infrastructure Works,
Machinery, and Equipment distributed throughout the Padre Hurtado facility.
Technical Reappraisal and Adjustment of Accounting Values
The 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$ 5,248,805 in 2004 and Th
Ch$ 4,671,670 in 2003.
The detail of fixed assets and their depreciation is shown on an attached
chart.
FIXED ASSETS
2004 2003
Th Ch$ Th Ch$
LAND
Land & mining claims 1,514,725 1,510,424
Subtotal land 1,514,725 1,510,424
*Subtotal land 1,514,725 1,510,424
CONSTRUCTIONS & INFRASTRUCTURE
High rises and industrial const. 13,486,690 13,461,630
Facilities 9,772,887 9,097,497
Housing developments 26,423 26,397
*Subtotal 23,286,000 22,585,524
DEPRECIATION
Accrued (10,724,662) (8,965,783)
For the fiscal year (662,130) (644,167)
Subtotal depreciation (10,936,792) (9,609,950)
SUBTOTAL CONSTRUCTIONS & INFRASTRUCTURE 12,349,208 12,975,574
MACHINERY & EQUIPMENT
Machinery 56,994,492 54,327,264
Furnaces 46,747,917 46,597,914
Furniture and Materials 1,371,663 1,239,002
Tools 441,172 353,433
Vehicles 213,113 222,108
*Subtotal 105,768,357 102,739,721
DEPRECIATION
Accrued (49,669,976) (41,265,498)
For the fiscal year (4,481,549) (3,922,481)
Subtotal depreciation (54,151,525) (45,187,979)
Subtotal machinery & equip 51,616,832 57,551,742
OTHER FIXED ASSETS
Spare parts 5,917,908 5,373,156
Imports in transit 838,648 84,730
Works underway 944,690 642,812
Lots in Pirque and Leyda 413,529 466,610
Other 400,246 347,137
Subtotal other assets 8,515,021 6,914,445
TOTAL FIXED ASSETS 139,084,103 133,750,114
TOTAL ACCUMUL. DEPREC. (59,944,638) (50,231,281)
TOTAL DEPREC FOR PERIOD (5,143,679) (4,566,648)
TOTAL NET FIXED ASSETS 73,995,786 78,952,185
TECHNICAL REVALUATION AND ADJUSTMENT OF ACCOUNTING VALUES
2004 2003
Th Ch$ Th Ch$
LAND
Land and mining claims 315,506 321,069
Subtotal land and mining claims net 315,506 321,069
CONSTRUCTIONS & INFRASTRUCTURE
High rises and industrial constructions 6,302,662 6,290,431
Facilities 41,665 41,614
Subtotal Constructions 6,344,317 6,332,045
DEPRECIATION
Accrued (5,101,125) (4,886,001)
For the fiscal year (105,126) (105,022)
Subtotal depreciations (5,206,251) (4,991,024)
Subtotal Constuctions & Infrastucture net 1,138,066 1,341,022
MACHINERY & EQUIPMENT
Furnaces 0 533,018
Machinery 0 581,718
Tools 0 0
Furniture and Materials 0 0
*Subtotal 0 1,114,736
DEPRECIATION
Accrued 0 (1,114,736)
For the fiscal year 0 0
Subtotal depreciation 0 (1,114,736)
Subtotal machinery & equip 0 0
Total Net Technical Revaluation 1,453,572 1,662,091
TOTAL FIXED REVALUATION 6,659,823 7,767,850
TOTAL ACCRUED DEPREC. (5,101,125) (6,000,737)
TOTAL DEPREC FOR THE PERIOD (105,126) (105,022)
TOTAL NET 1,453,572 1,662,091
13. Sales transactions with leaseback
These type of transactions were not carried out as of June 30, 2004 and 2003.
14. Investments in related companies
According to Circular N. 1697 of the SVS, valuations of investments in related
companies effected prior to January 2004 have been done using the Equity
Method (VPP).
This method consists in assigning the investment an equivalent value to the
proportion that corresponds to the company in book value net worth of the
issuer, and acknowledge proportionally the variations that this value
experiments.
CIECSA S.A.
On April 20, 2000, the Shareholders of Ciecsa S.A. agreeded to increase the
company's equity company in the equivalent of UF 359,921 through the issue of
343,750,000 shares that were fully subscribed by Cristalchile S.A.
Such subscription was finally paid on April 18, 2003. On August 26, 2003 it
was agreed to increase CIECSA's capital by Th Ch$ 910,000 by means of issuing
36,400,000 shares subscribed and paid in its totality by Cristalchile, with
which the participation in the subsidiary reached 98.45%.
CRISTALCHILE INVERSIONES S.A.
At the end of year 2001 this company was created in which Cristalerias de
Chile S.A. has a 99.99% participation. Cristalchile Inversiones S.A., in turn,
registers an investment of 40% in the capital of Rayen Cura S.A.I.C., a
company constituted in the city of Mendoza, Rep. of Argentina.
On January 31, April 25 and June 30, 2003, Rayen Cura S.A.I.C. carried out
returns from a capital increase paid on April 29, 2002. Amounts reimbursed
totalize Th US$ 2,600.
As of June 30, 2004, financial statements of Rayen Cura S.A.I.C. recognize a
rate of exchange of $ 2.94 argentine pesos per US dollar. Cristalchile
Inversiones S.A., in turn, has adjusted the financial statements Rayen Cura
S.A.I.C., to recognize the variation of $ 2.91 argentine pesos per US Dollar
as of December 31, 2003, and $ 2.94 argentine pesos per US Dollar as of June
30, 2004.
For the effect of results of this affiliate and the conversion of financial
statements of Rayen Cura S.A.I.C., according to the chilean normative,
CristalChile Inversiones S.A., has recognized a Th Ch$ 548,441 income during
the first half of 2004 and a Th Ch$ 742,704 income as of June 30, 2003.
On the other hand, the variation of the dollar exchange rate in Chile during
the first half of 2004, originated in the investment in Rayen Cura S.A.I.C.
and for the negative goodwill
produced by the purchase of shares of that company, a Th Ch$ 1,026,122 credit
In 2004 (Th Ch$ 723,786 charge in 2003), to Other Equity Reserves account.
CRISTALCHILE COMUNICACIONES S.A.
As of September 29, 2003, the shareholders of the company agreed to increase
its capital by issuing 3.861.538 shares without nominal value, at Ch$ 650 per
share, which represents Th Ch$ 2,510,000.
The increase was subscribed and paid by Cristalerias de Chile S.A., with which
its participation in the company reaches 99.998%.
S.A. VINA SANTA RITA
During the fiscal year 2004, the Company registered an non-realized income for
the sale of glass bottles to the subsidiary S.A. Vina Santa Rita of Th Ch$
41,007 (Th Ch$ 49,701 in 2003).
As of June 30, 2004, the accumulated balance for this concept reached Th Ch$
236,291 (Th Ch$ 256,978 in 2003).
INMOBILIARIA MONTE AZUL SA.
On May 14, 2004, Cristalchile S.A. paid its subsidiary Constructora Apoger the
sum of Th Ch$ 196 for 49% of its rights. With this contribution the
participation in this affiliate reached 50% as of June 30, 2004 (without
effects in results).
CRISTALERIAS DE CHILE S.A.
NOTE 14 - INVESTMENTS IN RELATED COMPANIES
DETAIL OF INVESTMENTS
R.U.T. Company Country Investment Number of Shareholder
of Control Shares (Percentage)
Origin Currency
06-30-2004 06-30-2003 06-30-2004
96721580-5 Cristalchile Chile Peso 105,074,698 99.0000000 99.000000
Comunicaciones
S.A.
86547900-K S.A. Vina Chile Peso 493,959,597 54.0000000 54.000000
Santa Rita
S.A.
86881400-4 Envases CMF Chile Peso 28,000 50.0000000 50.000000
S.A.
96608270-4 Ciecsa S.A. Chile Peso 689,301,305 98.0000000 98.000000
96767580-6 Constructora Chile Peso 800,000 80.0000000 80.000000
Apoger S.A.
96826870-8 Inmobiliaria Chile Peso 3,817 0.00000000 38.000000
Don Alberto
S.A.
96972440-5 Cristalchile Chile Peso 9,999 99.9900000 99.990000
Inversiones
S.A.
78936090-1 Inmobiliaria Chile Peso 50 50.0000000 0.000000
Monte Azul
S.A.
TOTAL
R.U.T. Company Company Net Accrued Income
Equity Income
06-30-2003 06-30-2004 06-30-2004 06-30-2003 06-30-2004 06-30-2003
96721580-5 Cristalchile 65,409,343 70,253,878 -4,040,744 -3,467,776 -4,040,670 -3,467,707
Comunicaciones
S.A.
86547900-K S.A. Vina 84,393,304 80,883,079 3,553,335 2,881,707 1,922,248 1,558,918
Santa Rita
S.A.
86881400-4 Envases CMF 32,276,385 33,753,421 298,319 1,216,701 149,160 608,349
S.A.
96608270-4 Ciecsa S.A. 19,205,202 14,822,184 926,745 75,302 912,341 74,068
96767580-6 Constructora 3,651 5,456 -1,082 -703 -866 -563
Apoger S.A.
96826870-8 Inmobiliaria 0 37 0 2 0 1
Don Alberto
S.A.
96972440-5 Cristalchile -1,811,40 -1,078,682 264,324 529,017 264,297 528,965
Inversiones
S.A.
78936090-1 Inmobiliaria -1,052 0 -1,654 0 -827 0
Monte Azul
S.A.
TOTAL
R.U.T. Company VPP Unrealized Investment Book value
Income
06-30-2004 06-30-2003 06-30-2004 06-30-2003 06-30-2004 06-30-2003
96721580-5 Cristalchile 65,408,145 70,252,490 0 0 65,408,145 70,252,499
Comunicaciones
S.A.
86547900-K S.A. Vina 45,654,254 43,755,327 236,291 256,978 45,417,963 43,498,340
Santa Rita
S.A.
86881400-4 Envases CMF 16,138,193 16,876,710 0 0 16,138,193 16,876,710
S.A.
96608270-4 Ciecsa S.A. 18,906,712 14,579,183 207,370 240,309 18,699,342 14,338,874
96767580-6 Constructora 2,921 4,365 0 0 2,921 4,365
Apoger S.A.
96826870-8 Inmobiliaria 0 14 0 0 0 14
Don Alberto
S.A.
96972440-5 Cristalchile 0 0 0 0 0 0
Inversiones
S.A.
78936090-1 Inmobiliaria -526 0 0 0 -526 0
Monte Azul
S.A.
TOTAL 146,109,699 145,468,089 443,661 497,287 145,666,038 144,970,802
15. Investments in other companies
As of June 30, 2004 and 2003 there are no investments in other companies.
16. Goodwill Amortization
NEGATIVE GOODWILL
Stock purchases made between years 1993 and 1999 of S.A. Vina Santa Rita and
Ciecsa S.A., have produced negative goodwill whose net balance to be amortized
as of June 30, 2004 totaled Th Ch$ 1,821,374 (Th Ch$ 1,992,171 in 2003).
POSITIVE GOODWILL
As of June 30, 2004 and 2003 there were no transactions for this concept.
CRISTALERIAS DE CHILE S.A.
NOTE 16 - GOODWILL ON INVESTMENTS
Negative Goodwill
R.U.T. Company Name 06-30-2004 06-30-2003
Amount Amortiz. Balance of Negative Amount Amortiz. Balance of Negative
this period Goodwill this period Goodwill
86547900-K S.A. Vina Santa Rita 25,288 538,221 25,264 588,212
96608270-4 Ciecsa S.A. 61,103 1,283,153 61,042 1,403,959
TOTAL 86,391 1,821,374 86,306 1,992,171
17. Intangibles
As of June 30, 2004 and 2003 there are no values for these items.
18. Other (Assets)
As of June 30, 2004, Other Long-term Assets include Th Ch$ 8,539,146 (Th Ch$
9,438,484 in 2003) for investments in Bonds of Celulosa Arauco y Constitucion
S.A., equivalent to US$ 13,455,834 at an annual rate of 6.95% with maturity on
September 15, 2005; and Th Ch$ 22,801 (Th Ch$ 136,155 in 2003) for overprice,
paid in the acquisition of these bonds, which that are amortized in the same
term of their maturity.
Considering that there is the intention of maintaining the Celulosa Arauco y
Constitucion S.A. bonds until their maturity on September 15, 2005, the
valuation and registration of the bonds fulfills the provisions in Circular
Letter No. 368 of the S.V.S., as Long-term Fixed Rate Instruments according to
their investment value plus the interest and adjustments accrued at the end of
the fiscal year.
Within Other Assets, as of June 30, 2004 there is a balance for issue expenses
of bond series C and D carried out by Cristalerias, that amounts Th Ch$
823,125 (Th Ch$ 956,326 in 2003) and negative goodwill as a result of their
placement of Th Ch$ 2,195,227 (Th Ch$ 2,404,145 in 2003).
19. Short-term obligations with banks and financial institutions
a) Short-term obligations with Banks and Financial Institutions
As of June 30, 2004 and 2003, there are not short-term bank obligations.
b) Current Portion of Long-term obligations with Banks and Financial
Institutions
A detail of operations is shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 19 - OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS, SHORT TERM
Type of Currency and Readjustment Index
R.U.T. Bank or Financial Dollars Euros Yen Other Foreign
Institution Currencies
06-30-2004 06-30-2003 06-30-2004 06-30-2003 06-30-2004 06-30-2003 06-30-2004 06-30-2003
Short term (code: 5.21.10.10)
Long Term - Short Term (code:
5.21.10.20)
0-E J.P Morgan Chase Bank 139,500 156,829 0 0 0 0 0 0
Others 0 0 0 0 0 0 0 0
TOTAL 139,500 156,829 0 0 0 0 0 0
Capital amount due 0 0 0 0 0 0 0 0
Average annual 2.05 2.1125 0 0 0 0 0 0
interest rate
Percentage oblig. foreign curr.(%) 100.0000
Percentage oblig. foreign curr.(%) 0.0000
R.U.T. Bank or Financial U.F. $ Non adjustable Total
Institution
06-30-2004 06-30-2003 06-30-2004 03-31-2003 06-30-2004 06-30-2003
Short term (code: 5.21.10.10)
Long Term - Short Term (code:
5.21.10.20)
0-E J.P Morgan Chase Bank 0 0 0 0 139,500 156,829
Others 0 0 0 0 0 0
TOTAL 0 0 0 0 139,500 156,829
Capital amount due 0 0 0 0 0 0
Average annual 0 0 0 0 0 0
interest rate
Percentage oblig. foreign curr.(%)
Percentage oblig. foreign curr.(%)
20. Other Current Liabilities
As of June 30, 2004 , there was a balance in favor of financial institutions
of Th Ch$ 1,718,914 (Th Ch$ 4,995,904 in 2003), corresponding to Future
Contracts subscribed by the Company, more detail is found in Note 34 under
Derivative Contracts.
21. Long term liabilities with banks and financial institutions
The obligations with banks and financial institutions are presented on the
charts attached.
CRISTALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Long-term Obligations With Banks and Financial Institution
Current period Previous period
Maturity
R.U.T. Bank or
Financial Adjustment
Institution index From 1 From 2 From 3 From 5 More than 10 years
currency to 2 to 3 to 5 to 10 Amount Term
M$ M$ M$ M$ M$
0-E J.P. Morgan Chase Bank Dollars 7,953,750 15,907,500 7,953,750 - - -
Euros - - - - - -
Yen - - - - - -
UF - - - - - -
Non-adj.CH$ - - - - - -
Others - - - - - -
Total 7,953,750 15,907,500 7,953,750 - - -
Porcentaje de obligaciones en moneda extranjera 100.00%
Porcentaje de obligaciones en moneda nacional 0.00%
Closing date Closing date
R.U.T. Bank or Current period Previous period
Financial Adjustment Total Long-Term Average Total Long-Term
Institution index at closing of annual at closing of
currency Financial interest Financial
Statements rate Statements
0-E J.P. Morgan Chase Bank Dollars 31,815,000 2.05 35,165,736
Euros - - -
Yen - - -
UF - - -
Non-adj.CH$ - - -
Others - - -
Total 31,815,000 - 35,165,736
Porcentaje de obligaciones en moneda extranjera
Porcentaje de obligaciones en moneda nacional
22. Short-term and long-term obligations with the public
(promissory notes and bonds)
As of June 30, 2004 , there are obligations with the public for UF 4,100,000,
equivalent to Th Ch$ 69,761,295 (Th Ch$ 69,951,855 in 2003), divided in series
C1, C2, D1, D2 with a 4.75% annual interest rate in series C and of 5.80% in
series D, respectively, that is presented in the long term.
In short term there is a balance of Th Ch$ 1,688,964 (Th Ch$ 1,683,436 in
2003) corresponding to accrued interests of UF 99,263.51
Series C bonds have a maturity of 6 years, with amortizations beginning 2
years from the date of issue. Series D bonds have a maturity of 21 years, with
amortization begining 6 years from the date of issue.
Cristalerias de Chile S.A.
NOTE 22: SHORT-TERM AND LONG-TERM OBLIGATIONS WITH PUBLIC (PROMISSORY NOTES
AND BONDS) BONDS
REGISTRATION OR SERIES CURRENT INDEXING INTEREST FINAL
IDENTIFICATION No. FACE VALUE UNIT OF BOND RATE MATURITY
OF INSTRUMENT
LONG-TERM BONDS-CURRENT PORTION
296-09.07.02 C1 Interests 0 UF 4.75 07-15-2004
296-09.07.02 C2 Interests 0 UF 4.75 07-15-2004
296-09.07.02 D1 Interests 0 UF 5.80 07-15-2004
296-09.07.02 D2 Interests 0 UF 5.80 07-15-2004
TOTAL CURRENT PORTION
LONG-TERM BONDS
296-09.07.02 C1 1,500,000 UF 4.75 07-15-2008
296-09.07.02 C2 500,000 UF 4.75 07-15-2008
296-09.07.02 D1 1,900,000 UF 5.80 07-15-2023
296-09.07.02 D2 200,000 UF 5.80 07-15-2023
LONG-TERM TOTAL
INSTALLMENTS PAR VALUE
REGISTRATION OR INTEREST AMORTIZATION ISSUE
IDENTIFICATION No. PAYMENT PAYMENT 06-30-2004 06-30-2003 IN CHILE OR
OF INSTRUMENT ABROAD
LONG-TERM BONDS-CURRENT PORTION
296-09.07.02 SEMI-ANNUAL SEMI-ANNUAL 555,855 554,036 LOCAL
296-09.07.02 SEMI-ANNUAL SEMI-ANNUAL 185,285 184,678 LOCAL
296-09.07.02 SEMI-ANNUAL SEMI-ANNUAL 857,555 854,748 LOCAL
296-09.07.02 SEMI-ANNUAL SEMI-ANNUAL 90,269 89,974 LOCAL
TOTAL CURRENT PORTION 1,688,964 1,683,436
LONG-TERM BONDS
296-09.07.02 SEMI-ANNUAL SEMI-ANNUAL 25,522,425 25,592,142 LOCAL
296-09.07.02 SEMI-ANNUAL SEMI-ANNUAL 8,507,475 8,530,714 LOCAL
296-09.07.02 SEMI-ANNUAL SEMI-ANNUAL 32,328,405 32,416,713 LOCAL
296-09.07.02 SEMI-ANNUAL SEMI-ANNUAL 3,402,990 3,412,286 LOCAL
LONG-TERM TOTAL 69,761,295 69,951,855
23. Reserves and Write-offs
Reserves:
As of June 30, 2004, the Company has short-term reserves of Th Ch$ 7,170,405
and Th Ch$ 4,128,088 in 2003.
In the Long-term, reserves recorded are of Th Ch$ 6,417,630 and Th Ch$
7,578,300 respectively as of June 30 2004 and 2003.
Provisioned amounts are exposed in the annexed chart.
a) Reserves for Bad Debt:
The Company has established a reserve for bad debts of Th Ch$ 143,127, and Th
Ch$ 143,986, respectively, as of June 30, 2004 and 2003.
This reserve is deducted from the balance of debtors from sales, as stated in
note 5.
b) Vacation Reserve:
The Company has established a reserve for the total cost of vacations pending
as of June 30, 2004 and 2003, as established in Technical Bulletin No. 47 of
the Accountants Association of Chile A.G.
The net balance for this item amounts to Th Ch$ 367,771 as of June 30, 2004
(Th Ch$ 311,482 in 2003).
c) Reserve for Furnace Reconstruction:
This reserve is established throughout the useful life of the refractants 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$
4,194,934 and Th Ch$ 3,441,103 as of June 30, 2004 and 2003, respectively.
An itemized list of the amounts provided is shown in the annexed chart.
Cristalerias de Chile S.A.
Note Reserves and Write-offs 06/30/2004 06/30/2003
Short term
Packing for Client Return 1,265,054 1,125,820
Furnace Reconstruction 1,997,982 0
Board Share 285,011 118,306
Reserve Spare Parts 438,189 449,065
Legal Holiday 367,771 311,482
Severance Pay 185,502 183,430
Reserve Subsidiary Losses 1,811,220 1,078,575
Provision Indirect Expenses 492,914 463,354
Provision Legal Gratification 77,432 67,575
Other Reserves 249,330 330,481
Total short term 7,170,405 4,128,088
Long term
Severance Pay 4,220,678 4,137,197
Furnace Reconstruction 2,196,952 3,441,103
Total long term 6,417,630 7,578,300
24. Severance Payments
The reserve for severance payments to personnel is included at its current
value, as expressed in note 2 r). As of June 30, 2004 it amounts Th Ch$
4,406,180 (Th Ch$ 4,320,627 in 2003).
As of June 30, 2004 and 2003 the company has made severance payments of Th Ch$
135,042 and Th Ch$ 34,375 chargeable against the reserve, respectively.
25. Other long-term liabilities
As of June 30, 2004 and 2003 there are no balances for this item.
26. Minority interest
Not applicable to individual financial statements.
27. Changes in Equity
a. Activity in 2004 and 2003
The activity of the capital and reserve accounts in the fiscal years ended in
June 30, 2004 and 2003, are shown in the attached charts.
b. Other Reserves
The detail of this item is as follows:
2004 2003
Th Ch$ Th Ch$
Future capital increases 4,564,803 4,376,765
Reserve for adjustment of value 1,453,572 1,635,616
of fixed assets
Adjustment for conversion difference 1,481,022 3,142,699
in investment in Rayen Cura S.A.I.C.
--------- ---------
TOTAL OTHER RESERVES 7,499,397 9,155,080
========= =========
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NET WORTH
Paid-in Reserve Premium Other
Capital capital in sale of Reserves
revaluation shares
---------- ----------- ---------- ---------
Balances as of 06-30-2004
Initial balance 65,396,749 0 27,874,377 6,421,900
Distribution result previous fiscal year 0 0 0 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 1,026,122
Owner's equity Revaluation 0 523,174 222,995 51,375
Fiscal Year Result 0 0 0 0
Provisional Dividends 0 0 0 0
Final balances 65,396,749 523,174 28,097,372 7,499,397
Balances as of 06-30-2003
Initial balance 64,749,257 0 27,598,393 9,713,099
Distribution result previous fiscal year 0 0 0 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 0 0
Accumulated conversion difference
adjustment 0 0 0 -719,466
Owner's equity revaluation 0 712,242 303,583 106,844
Fiscal Year Result 0 0 0 0
Provisional Dividends 0 0 0 0
Final balances 64,749,257 712,242 27,901,976 9,100,477
Updated balances 65,137,753 716,515 28,069,388 9,155,080
Reserve Accumulated Provisional Devel. Fiscal
Future Results Dividends Period Year
Dividends Deficit Result
----------- ----------- ----------- ------- ---------
Balances as of 06-30-2004
Initial balance 123,160,119 6,426,520 -958,080 0 0
Distribution result previous fiscal year 5,468,440 -6,426,520 958,080 0 0
Final dividend previous fiscal year -1,612,800 0 0 0 0
Capital increases with cash stock issue 0 0 0 0 0
Reserves and/or Profits Capitalization 0 0 0 0 0
Development period Accumulated deficit 0 0 0 0 0
Accumulated conversion difference
adjustment 0 0 0 0 0
Owner's equity Revaluation 1,104,514 0 0 0 0
Fiscal Year Result 0 0 0 0 7,125,275
Provisional Dividends 0 0 -1,280,000 0 0
Final balances 128,030,273 0 -1,280,000 0 7,125,275
Balances as of 06-30-2003
Initial balance 114,912,655 17,660,662 -3,303,936 0 0
Distribution result previous fiscal year 14,356,726 -17,660,662 3,303,936 0 0
Final dividend previous fiscal year -5,526,400 0 0 0 0
Capital increases with cash stock issue 0 0 0 0 0
Reserves and/or profit Capitalization 0 0 0 0 0
Development period accumulated deficit 0 0 0 0 0
Accumulated conversion difference
adjustment 0 0 0 0 0
Owner's equity revaluation 1,449,595 0 0 0 0
Fiscal Year Result 0 0 0 0 2,940,009
Provisional Dividends 0 0 -960,000 0 0
Final balances 125,192,576 0 -960,000 0 2,940,009
Updated balances 125,943,731 0 -965,760 0 2,957,649
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN EQUITY -
NUMBER OF SHARES
SERIES No. No. No.
SHARES SHARES SHARES
SUBSCRIBED PAID WITH VOTING
RIGHT
------ ---------- ---------- -----------
SINGLE 64,000,000 64,000,000 64,000,000
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH -
CAPITAL (AMOUNT - TH CH$)
SERIES SUBSCRIBED PAID-IN
CAPITAL CAPITAL
------ ---------- ----------
SINGLE 65,396,749 65,396,749
28. Other Non-operating Income and Expenses
As of June 30, 2004 non-operating income totaled Th Ch$ 302,039 and Th Ch$
198,321 in 2003.
Non-operating expenses amounted to Th Ch$ 498,015 in 2004 and Th Ch$ 449,378
in 2003.
Greater detail is shown in the annexed chart.
Non-operating Income and Expenses
CRISTALERIAS DE CHILE S.A.
NOTE 28: OTHER NON-OPERATING INCOME AND EXPENSES
2004 2003
------- -------
Th Ch$ Th Ch$
INCOME
Offices and establishments rental 82,879 88,404
Sale of fixed assets 8,588 3,687
Sale of materials 6,084 7,157
Agricultural Division 15,519 55,783
Amortization of non-realized profits 16,590 16,573
Sundry income 172,379 26,717
TOTAL NON-OPERATING INCOME 302,039 198,321
EXPENSES
Professional advice 311,651 311,341
Other expenses 133,087 90,517
Insurances 24,917 21,968
Expenses ADR'S 28,360 25,552
TOTAL NON-OPERATING EXPENSES 498,015 449,378
29. Price-level Restatement
As a result of the application of price-level restatement as described in Note
2 d), a net credit to results was generated in the 2004 of Th Ch$ 276,582 and
of Th Ch$ 388,966 in 2003 fiscal year.
Additional information ordered by balance item is shown in the annexed chart.
Cristalerias de Chile S.A.
NOTE 29: ADJUSTMENT FOR PRICE LEVEL RESTATEMENTS
ADJUSTABILITY
ASSETS (DEBITS)/CREDITS INDEX 06-30-2004 06-30-2003
------------------------------------------ -------------------- ---------- ----------
INVENTORY Consumer Price Index 99,463 72,133
FIXED ASSET CPI 913,615 733,682
INVESTMENTS IN RELATED COMPANIES CPI 1,164,540 1,628,607
MARKETABLE SECURITIES CPI 33,236 42,125
SHORT TERM DEBTORS CPI 1,293 1,772
ACCOUNTS RECEIVABLE RELATED COMPANIES UF 117,495 296,006
LONG-TERM DEBTORS UF 2,543 2,167
SHORT TERM DEBTORS UF 1,131 913
OTHER NON-MONETARY ASSETS CPI 36,928 43,421
EXPENSE AND COST ACCOUNTS CPI 87,057 892,631
TOTAL (DEBITS)/CREDITS - 2,457,301 3,713,457
LIABILITIES (DEBITS)/ CREDITS
NET WORTH CPI -1,812,057 -2,587,697
ACCOUNTS RECEIVABLE RELATED COMPANIES UF 13 -49
SHORT-TERM RESERVES CPI -71,961 -18,884
SHORT -TERM CREDITORS CPI 0 0
LONG-TERM RESERVES CPI -79,482 -54,666
PUBLIC OBLIGATION UF -389,295 -889,057
LONG-TERM CREDITORS CPI -237 -578
NON-MONETARY LIABILITIES CPI -128,680 -90,809
INCOME ACCOUNTS CPI -252,184 -460,683
TOTAL (DEBITS)/ CREDITS - -2,733,883 -4,102,423
(LOSS) PROFIT FROM ADJUSTMENT FOR PRICE
LEVEL RESTATEMENT -276,582 -388,966
30. Exchange Differences
A net credit against results was made due to exchange rate differences of Th
Ch$ 1,391,248 in 2004 and a net charge of Th Ch$ 3,617,428 in 2003.
According to the provisions in SVS Circular Letter 1560 of 09/20/2001, this
item presents the net effect of the adjustment of adjustable assets and
liabilities in foreign currency on results deducting the inflation effect is
presented in this item.
Further information is shown on the table attached.
Cristalerias de Chile S.A.
NOTE 30: EXCHANGE DIFFERENCES
ITEM CURRENCY AMOUNT
-------------------------------------- -------------- --------------------------
06-30-2004 06-30-2003
---------- ----------
FIXED (DEBITS) CREDITS
AVAILABLE DOLLARS 7,524 -15,158
MARKETABLE SECURITIES DOLLARS 1,742,267 -1,508,055
MARKETABLE SECURITIES EURO 1,157,849 0
TIME DEPOSITS DOLLARS 0 -185,532
INVENTORY DOLLARS 8,004 -15,660
BONDS INSTALLMENT DOLLARS 573,673 -588,092
SUNDRY DEBTORS DOLLARS 6,308 -9,738
OTHER ASSETS DOLLARS 531,328 -12,995
ADJUSTMENT EFFECT OF INFLATION DOLLARS -194,685 -124,018
TOTAL (DEBITS) CREDITS 3,832,268 -2,459,248
LIABILITIES (DEBITS) CREDITS
NOTES PAYABLE DOLLARS -19,254 85,210
NOTES PAYABLE OTHER CURRENCY 1,892 7,235
SUNDRY CREDITORS - SHORT TERM DOLLARS -40,954 22,013
LONG- TERM BANK LOANS DOLLARS -2,125,000 980,347
SHORT-TERM RESERVES DOLLARS -133,450 0
LONG-TERM RESERVES DOLLARS -127,586 61,448
SUNDRY CREDITORS - LONG TERM DOLLARS -8,247 3,943
OTHER LIABILITIES DOLLARS -136,961 0
ADJUSTMENT FUTURE CONTRACTS DOLLARS 30,112 -2,754,341
ADJUSTMENT EFFECT OF INFLATION DOLLARS 118,428 435,965
TOTAL (DEBITS) CREDITS -2,441,020 -1,158,180
(LOSS) PROFIT FROM EXCHANGE DIFFERENCE 1,391,248 -3,617,428
31. Extraordinary Items
As of June 30, 2004 and 2003, there are no transactions for this item.
32. Share and Debt Instruments Issue and Placement Expenses
On August 2002 the company placed bonds for UF 4,100,000, series C1, C2,
D1 and D2, which resulted in issue expenses and rate differential for
placement of Th Ch$ 3,344,433 as of June 30, 2004 (Th Ch$ 3,687,857 in
2003). The amortization is been done according to the maturity of each
series.
There are Th Ch$ 326,081 (Th Ch$ 327,387 in 2003) under other current
assets and Th Ch$ 3,018,352 (Th Ch$ 3,360,470 in 2003) other long term
assets respectively.
The charge to results for its amortization amounted Th Ch$ 164,859 in
2004 (Th Ch$ 163,495 in 2003).
DETAIL Short -Term Long-Term
-------------------------- --------------------- -----------------------
2004 2003 2004 2003
------- ------- --------- ---------
Issue expenses 127,148 127,911 823,125 956,325
Placement rate differences 198,933 199,476 2,195,227 2,404,145
Total 326,081 327,387 3,018,352 3,360,470
33. Cash Flow Statement
CRISTALERIAS DE CHILE S.A.
1. The following it the detail of the item OTHERS:
Jun 2004 Jun 2003
Th Ch$ Th Ch$
-------- ---------
541.11.40 Other income received
Exchange different 100,216 293,398
Discount for Custom Duties 54,737 0
Loan Adjustment 42,646 0
Tributary tax exemption 15,000 900,822
Treasury Reimbursement 0
Other income 64,795 1,014
Total 277,394 1,195,234
541.11.80 Other expenses paid
Exchange difference 149,150 2,084,888
Donations 41,663 25,849
Advice services 0
Contracts finished 0
Board participacion Directorio 0 0
Other expenses 4,381 6,163
Total 195,194 2,116,900
541.13.30 Other income from investments
Maturity of future contracts 1,476,576
Total 0 1,476,576
541.13.65 Other investment disbursements
Purchase of shares 319,759
Future Contracts 308,049
Total 0 627,808
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 $ Maturity
-------------------------- -------------- ------------
Dividend 158 1,280,000 July -2004
Amounts payable investment 537,365 2nd Semester
TOTAL 1,817,365
34. Derivative Contracts
The company has signed purchase and sale future contracts in foreign currency
of Th US$ 37,600 and sale future contracts in foreign currency Th US$ 37,600
and Th US$ 60,600, respectively (purchase of Th Ch$ 109,600 as of June 30,
2003) subject to the regulations of Chapter VII of the Compendium of
International Exchange Regulations of the Central Bank of Chile and Chapter
13-2 of the compilation of Regulations of Banks and Financial Institutions.
As of June 30, 2004 there was a difference in favor of financial institutions
of Th Ch$ 1,718,914 (Th Ch$ 4,995,904 in 2003) which is classified under Other
Current Liabilities.
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS
TYPE OF TYPE OF VALUE OF MATURITY OR DESCRIPTION OF CONTRACTS
DERIVATIVE CONTRACT CONTRACT EXPIRATION
DATE
-----------------------------------------------
SPECIFIC PURCHASE/ PROTECTED ITEM OR
ITEM SALE TRANSACTION
POSITION
-----------------
NAME AMOUNT
------------- -------- ---------- ----------- ------------- -------- ----- ------
FR CI 25,992,590 THIRD 2004 EXCHANGE RATE P - 0
FR CI 36,977,320 THIRD 2004 EXCHANGE RATE S - 0
FR CI 1,931,256 FOURTH 2004 EXCHANGE RATE S - 0
TYPE OF TYPE OF VALUE OF VALUE OF ACCOUNTS AFFECTED
DERIVATIVE CONTRACT CONTRACT PROTECTED
ITEM
-----------------------------------------------------
ASSETS/LIABILITIES EFFECT ON RESULT
------------------------- -------------------------
NAME AMOUNT REALIZED NOT REALIZED
------------- -------- ---------- ----------- ------------- --------- ---------- ------------
FR CI 25,992,590 0 LIABILITIES 2,067,710 -2,067,710 0
FR CI 36,977,320 0 ASSETS 326,444 326,444 0
FR CI 1,931,256 0 ASSETS 22,352 22,352 0
Analysis of Forward Contracts in foreign currency as of 06.30.2004
INSTITUTION DATE FUTURE VALUE FUTURE VALUE PROFIT
(Loss)
--------------------------- ------------ ------------ -----------
Investment Maturity Exchange US$ Jun
PURCHASE US$ ThCh$
--------------------------- ---------- ---------- ------------ ------------ -----------
Citibank NA. 09-08-2003 09-02-2004 694.25 2,000,000 (111,726)
Deutsche Bank (Chile) S.A. 09-04-2003 09-03-2004 697.20 15,000,000 (899,492)
Bank Boston 09-10-2003 09-06-2004 694.20 2,000,000 (111,788)
Deutsche Bank (Chile) S.A. 09-08-2003 09-07-2004 695.50 2,000,000 (111,282)
Deutsche Bank (Chile) S.A. 09-08-2003 09-07-2004 693.80 1,800,000 (101,329)
Deutsche Bank (Chile) S.A. 09-10-2003 09-09-2004 693.90 2,800,000 (158,015)
Deutsche Bank (Chile) S.A. 09-10-2003 09-09-2004 695.50 2,000,000 (115,709)
Banco Chile 09-11-2003 09-06-2004 685.84 3,000,000 (145,749)
Banco Chile 09-15-2003 09-09-2004 682.92 3,500,000 (154,948)
Banco Santander 09-15-2003 08-16-2004 681.90 3,500,000 (157,672)
Total Purchase 37,600,000 (2,067,710)
SALES
Bank Boston 10-14-2003 09-09-2004 649.30 4,800,000 55,330
Banco Santander 10-21-2003 09-07-2004 653.00 2,000,000 29,375
Deutsche Bank (Chile) S.A. 10-22-2003 09-09-2004 650.00 2,000,000 24,343
Banco Santander 10-22-2003 09-09-2004 650.80 1,500,000 19,078
Citibank 10-22-2003 09-07-2004 650.00 1,800,000 21,946
Deutsche Bank (Chile) S.A. 10-23-2003 09-02-2004 641.50 2,000,000 10,828
Banco Santander 10-23-2003 09-03-2004 642.20 6,000,000 35,418
Deutsche Bank (Chile) S.A. 10-24-2003 09-03-2004 642.50 2,000,000 7,981
Deutsche Bank (Chile) S.A. 10-24-2003 09-03-2004 643.00 2,000,000 8,676
Deutsche Bank (Chile) S.A. 10-24-2003 09-03-2004 644.00 1,000,000 5,033
Deutsche Bank (Chile) S.A. 10-24-2003 09-03-2004 644.50 1,000,000 5,381
Banco Santander 10-27-2003 09-03-2004 643.35 2,000,000 9,140
Deutsche Bank (Chile) S.A. 10-27-2003 09-03-2004 645.50 1,000,000 6,058
Deutsche Bank (Chile) S.A. 10-28-2003 08-16-2004 641.50 1,000,000 3,738
Banco Santander 10-28-2003 08-16-2004 642.12 2,500,000 10,484
Banco Santander 10-28-2003 09-06-2004 645.55 2,000,000 12,484
Deutsche Bank (Chile) S.A. 11-06-2003 09-06-2004 637.40 1,000,000 (1,474)
Banco Santander 11-12-2003 09-06-2004 638.35 1,000,000 (1,354)
Deutsche Bank (Chile) S.A. 11-18-2003 09-06-2004 634.30 1,000,000 (4,998)
Deutsche Bank (Chile) S.A. 05-18-2004 08-16-2004 642.50 1,000,000 5,777
Deutsche Bank (Chile) S.A. 05-17-2004 08-16-2004 642.50 2,500,000 9,974
Deutsche Bank (Chile) S.A. 05-18-2004 08-16-2004 641.50 1,000,000 5,299
Deutsche Bank (Chile) S.A. 05-20-2004 08-23-2004 643.30 4,000,000 10,129
Deutsche Bank (Chile) S.A. 05-20-2004 08-18-2004 643.30 4,000,000 10,883
Deutsche Bank (Chile) S.A. 05-24-2004 09-01-2004 640.50 1,500,000 8,955
Deutsche Bank (Chile) S.A. 05-24-2004 08-23-2004 641.00 1,000,000 6,071
Deutsche Bank (Chile) S.A. 05-26-2004 09-03-2004 640.50 2,000,000 4,462
Deutsche Bank (Chile) S.A. 05-26-2004 09-03-2004 641.20 3,000,000 7,427
Deutsche Bank (Chile) S.A. 06-04-2004 10-04-2004 646.30 3,000,000 22,352
Subtotal Sale 60,600,000 348,796
Total as of June 30 2004 -23,000,000 (1,718,914)
35. Contingencies and Restrictions
As of June 30, 2004, there is a guarantee delivered in the amount of Th Ch$
15,822 and Th Ch$ 7,999 in 2003, according to the detail in the attached
chart.
LAWSUITS OR OTHER LEGAL ACTIONS THE COMPANY IS INVOLVED IN
As of June 30, 2004 and 2003 there are no lawsuits and other legal actions
pending.
RESTRICTIONS
I) SYNDICATED LOAN
In relation to the syndicated loan subscribed with JP Morgan Chase Bank and
other 8 creditor banks for US$ 50 million, 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 0.45 to 1.0 relation at any time.
Capitalization is described as the sum of Net Worth plus minority interests
plus total consolidated debt.
b) NET CONSOLIDATED DEBT TO EBITDA RATIO
Cristalerias de Chile S.A will not allow the Total Non-consolidated Debt to
EBITDA Ratio to exceed the 2.5 to 1.0 relation at any time.
EBITDA is described as the sum of the following: operating income plus
depreciation and amortization; plus non cash charges (as long as they have
been deducted when determining operating income) and cash income from
interests minus non/cash credits, (as long as they have been aggregated when
determining operating income), in each case for each period.
c) INTEREST COVERAGE RATIO
Cristalerias de Chile S.A. will not allow the Interest Coverage Ratio to be
lower than 4,0.
Interest coverage is defined as interests at the day of the respective
determination, the ratio between non consolidated EBITDA for the period of 4
consecutive fiscal quarters that ends on, or most recently ebded before, that
date, and interest expenses for that period.
d) NET EQUITY
Cristalerias de Chile S.A. will maintain a minimum of UF 10,000,000 at
any time.
Cristalerias de Chile S.A. complies with 100% of the restrictions imposed by
the banks.
BOND ISSUE
At of May 29, 2002 the contract of bonds issue was signed with Banco Chile as
the bond owner's representative, established the following obligations:
a) Financial Indicators
Individual Balance: Leverage not higher than 1.2 times.
Consolidate Balance: Leverage not higher than 1.4 times.
b) Insurances for fixed assets of the company and its subsidiaries.
c) The operations for which art. 44 and 89 of law 18,046 refer to must be
carried out according to the conditions that these establish.
d) Other restrictions related with contract of the bonds issued.
Cristalerias de Chile S.A. complies with 100% of the restrictions imposed by
the bonds creditors.
OTHER CONTINGENCIES
As of June 30, 2004 and 2003, management is not aware of any other
contingencies that could affect the company.
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - DIRECT GUARANTEES
CREDITOR OF DEBTOR TYPE OF ASSETS BALANCES PENDING
GUARANTEE GUARANTEE COMMITTED PAYMENT AS OF CLOSING
DATE
OF FINANCIAL STATEMENTS
------------------------------ -------------- -----------------------
NAME RELATIONSHIP TYPE BOOK
VALUE 06-30-2004 06-30-2003
----------- --------------- ------------ --------- ----- ------ ---------- ----------
EDIFICIO CRISTALERIAS DE COMMERCIAL DEPOSIT FLOOR 15,822 15,822 7,999
METROPOLIS CHILE S.A.
AGF
CREDITOR OF DEBTOR
GUARANTEE
RELEASE OF GUARANTEES
------------------------------ ---------------------------------------------------------------
NAME RELATIONSHIP 06-30-2005 ASSETS 06-30-2006 ASSETS 06-30-2007 ASSETS
----------- --------------- ------------ ---------- ------ ---------- ------ ---------- ------
EDIFICIO CRISTALERIAS DE COMMERCIAL - - - - 15,822 -
METROPOLIS CHILE S.A.
AGF
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - INDIRECT GUARANTEES
CREDITOR OF DEBTOR TYPE OF ASSETS BALANCES PENDING
GUARANTEE GUARANTEE COMMITTED PAYMENT AS OF CLOSING
DATE
OF FINANCIAL STATEMENTS
------------------------------ -------------- -----------------------
NAME RELATIONSHIP TYPE BOOK
VALUE 06-30-2004 06-30-2003
-------------- --------------- ------------ --------- ----- ------ ---------- ----------
Societe de Affiliate Solidary - - 1,832,545 2,835,765
Participations Rayen Cura
Financieres et S.A.
Industrielles
Cristalerias
Envases CMF de Chile
S.A. Affiliate Solidary - - 207,423 331,333
CREDITOR OF DEBTOR
GUARANTEE
RELEASE OF GUARANTEES
------------------------------ ---------------------------------------------------------------
NAME RELATIONSHIP 06-30-2005 ASSETS 06-30-2006 ASSETS 06-30-2007 ASSETS
-------------- --------------- ------------ ---------- ------ ---------- ------ ---------- ------
Societe de Affiliate 733,018 - 733,018 - 366,509 -
Participations Rayen Cura
Financieres et S.A.
Industrielles
Cristalerias
Envases CMF de Chile
S.A. Affiliate - - - - 207,423 -
36. Guarantees obtained from third parties
As of June 30, 2004 and 2003 the Company has received guarantees from third
parties, which are shown below:
ITEM 2004 2003
Th Ch$ Th Ch$
Real Estate Lease Security Bank UF 304 5,173 5,186
Real Estate Lease to Telecomunicaciones
and Services Cono Sur Ltda. UF 130 0 2,218
Real Estate Lease AGF Building UF 365.9 6,226 6,242
Real Estate Lease Metropolis Building UF 189.2 3,219 3,228
Real Estate Lease Cafe Sur Andino UF 260 4,424 0
Suppliers Sight Drafts 1,674 1,684
TOTAL 20,716 18,558
37. Local and Foreign Currency
Charts are attached showing the foreign currency balance as of June 30, 2004
and 2003.
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY -
ASSETS
ITEMS Currency Amount
---------------------------
06-30-2004 06-30-2003
-------------------------- --------------- ----------- -----------
Current Assets
CASH Non-adjust Ch$ 1,327,448 1,295,444
CASH Dollars 144,118 509,673
TIME DEPOSITS Dollars 0 10,445,036
MARKETABLE SECURITIES Adjustable Ch$ 4,187,786 4,183,939
MARKETABLE SECURITIES Dollars 26,119,132 54,372,054
MARKETABLE SECURITIES Non-adjust. Ch$ 176,393 194,133
DEBTORS FROM SALES Non-adjust. Ch$ 18,766,519 14,697,104
DOCUMENTS RECEIVABLE Non-adjust. Ch$ 995,423 1,673,336
MISCELLANEOUS DEBTORS Adjustable Ch$ 108,345 93,486
MISCELLANEOUS DEBTORS Non-adjust. Ch$ 51,033 13,923
MISCELLANEOUS DEBTORS Dollars 668,952 567,918
DOC.&ACTS. REC. REL. CO'S. Non-adjust. Ch$ 4,890,723 2,151,322
DOC.&ACTS. REC. REL. CO'S. Adjustable Ch$ 1,361 15,821
STOCK Adjustable Ch$ 4,893,052 4,082,039
STOCK Dollars 2,085,677 2,600,488
REFUNDABLE TAX Adjustable Ch$ 1,126,358 1,276,166
EXPENSES PAID IN ADVANCE Dollars 311,513 334,727
DEFERRED TAXES Non-adjust Ch$ 843,755 362,459
OTHER CURRENT ASSETS Non-adjust Ch$ 6,850,685 4,085,704
OTHER CURRENT ASSETS Dollars 261,775 561,647
OTHER CURRENT ASSETS Adjustable Ch$ 326,081 327,389
TIME DEPOSITS Non-adjust. Ch$ 5,004,267 0
MARKETABLE SECURITIES Euro 29,132,370 0
EXPENSES PAID IN ADVANCE Non-adjust. Ch$ 28,136 0
Fixed Assets
FIXED ASSETS Adjustable Ch$ 75,449,358 80,614,276
Other Assets
INVESTMENT REL. CO'S. Adjustable Ch$ 145,666,038 144,970,802
NEG. INVESTMENT GOODWILL Adjustable Ch$ 1,821,374 1,992,171
LONG-TERM DEBTORS Adjustable Ch$ 119,106 151,965
L-T DOC. REC. REL. CO'S. Adjustable Ch$ 21,152,513 21,994,506
OTHERS Dollars 8,561,947 9,574,639
OTHERS Adjustable Ch$ 2,195,227 3,360,471
OTHERS Non-adjust. Ch$ 823,125 0
L-T DOC. REC. REL. CO'S. Non-adjust. Ch$ 855,171 0
Total Assets
Non-adjust. Ch$ 40,612,678 24,473,425
Dollars 38,153,114 78,966,182
Adjustable Ch$ 257,046,599 263,063,031
Euro 29,132,370 0
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY -
CURRENT LIABILITIES
ITEM Currency Up to 90 days
---------------------------------------------
06-30-2004 06-30-2003
-------------------- --------------------
Amount Avg. Amount Avg.
Annual Annual
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
--------------------------------- ---------------- --------- --------- --------- ---------
Current Liabilities
Long-Term Obligations Dollars 139,500 2.05 156,829 2.113
1-year maturity
Long-Term Obligations with public Adjustable Ch$ 741,140 4.75 738,715 4.75
Adjustable Ch$ 947,824 5.80 944,721 5.80
Dividend Payable Non-adjust. Ch$ 651,595 - 509,838 -
Accounts Payable Non-adjust. Ch$ 2,251,469 - 3,410,613 -
Documents Payable Dollars 2,575,956 - 2,760,113 -
Documents Payable Other Currencies 4,269 - 556,202 -
Miscellaneous Creditors Non-adjust. Ch$ 222,426 - 218,512 -
Miscellaneous Creditors Dollars 613,151 - 789,627
Doc. and Accts. Payable rel Co Non-adjust. Ch$ 939,803 - 672,972 -
Doc. and Accts. Payable rel Co Adjustable Ch$ 1,761 - 3,549 -
Reserves Adjustable Ch$ 367,771 - 311,482 -
Reserves Non-adjust. Ch$ 4,619,150 - 3,633,176 -
Withholding Non-adjust. Ch$ 661,448 - 390,574 -
Other Current Liabilities Dollars 1,718,914 - 0 -
Other Current Liabilities Adjustable Ch$ 0 - 4,995,904 -
Reserves Dollars 0 - 0 -
Total Current Liabilities
Dollars 5,047,521 - 3,706,569 -
Adjustable Ch$ 2,058,496 - 6,994,371 -
Non-adjust. Ch$ 9,345,891 - 8,835,685 -
Other Currencies 4,269 - 556,202 -
ITEM Currency 90 Days to 1 Year
---------------------------------------------
06-30-2004 06-30-2003
-------------------- --------------------
Amount Avg. Amount Avg.
Annual Annual
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
--------------------------------- ---------------- --------- --------- --------- ---------
Current Liabilities
Long-Term Obligations Dollars - - - -
1-year maturity
Long-Term Obligations with public Adjustable Ch$ - - - -
Adjustable Ch$
Dividend Payable Non-adjust. Ch$ - - - -
Accounts Payable Non-adjust. Ch$ - - - -
Documents Payable Dollars - - - -
Documents Payable Other Currencies - - - -
Miscellaneous Creditors Non-adjust. Ch$ - - - -
Miscellaneous Creditors Dollars - - - -
Doc. and Accts. Payable rel Co Non-adjust. Ch$ - - - -
Doc. and Accts. Payable rel Co Adjustable Ch$ - - - -
Reserves Adjustable Ch$ 185,502 - 183,430 -
Reserves Non-adjust. Ch$ - - - -
Withholding Non-adjust. Ch$ - - - -
Other Current Liabilities Dollars - - - -
Other Current Liabilities Adjustable Ch$ - - - -
Reserves Dollars 1,997,982 - - -
Total Current Liabilities
Dollars 1,997,982 - - -
Adjustable Ch$ 185,502 - 183,430 -
Non-adjust. Ch$ - - - -
Other Currencies - - - -
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY -
LONG-TERM LIABILITIES CURRENT PERIOD 06-30-2004
ITEM Currency 1-3 Years 3-5 years
---------------------------- ----------------------------
Amount Average Amount Average
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
---------------------------- --------------- ---------- ------------- ---------- -------------
Obligations with Banks and Dollars 7,953,750 205 23,861,250 205
Financial Institutions
Obligations with public bond Adjust. Ch$ - - - -
Serie C
Obligations with public bond Adjust. Ch$ - - - -
Serie D
Deferred Custom Duties Dollars 123,473 1225 - -
Long-term Creditors Adjust. Ch$ 38,781 - - -
Long-term Reserves Dollars 2,196,952 - - -
Long-term Reserves Adjust. Ch$ 4,220,678 - - -
Deferred Taxes Non-adjust. Ch$ 2,756,681 - - -
Total Long-term Liabilities
Dollars 10,274,175 - 23,861,250 -
Adjust. Ch$ 4,259,459 - - -
Non-adjust. Ch$ 2,756,681 - - -
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 - - - -
Financial Institutions
Obligations with public bond Adjust. Ch$ 34,029,900 475 - -
Serie C
Obligations with public bond Adjust. Ch$ - - 35,731,395 58
Serie D
Deferred Custom Duties Dollars - - - -
Long-term Creditors Adjust. Ch$ - - - -
Long-term Reserves Dollars - - - -
Long-term Reserves Adjust. Ch$ - - - -
Deferred Taxes Non-adjust. Ch$ - - - -
Total Long-term Liabilities
Dollars - - - -
Adjust. Ch$ 34,029,900 - 35,731,395 -
Non-adjust. Ch$ - - - -
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY -
LONG-TERM LIABILITIES PREVIOUS PERIOD 06-30-2003
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 8,791,434 2.113 26,374,302 2.113
financial institutions
Obligations with public bond Adjust. Ch$ 0 - - -
Serie C
Obligations with public bond Adjust. Ch$ 0 - -
Serie D
Long-term Creditors Dollars 141,433 12.25 - -
Long-term Creditors Adjust. Ch$ 45,111 - - -
Long-term Reserves Dollars 3,441,104 - - -
Long-term Reserves Adjustable Ch$ 4,137,196 - - -
Deferred Taxes Non-adjust. Ch$ 2,329,590 - - -
Total Long-term Liabilities
- Dollars 12,373,971 - 26,374,302 -
- Adjust. Ch$ 4,182,307 - - -
- Non-adjust. Ch$ 2,329,590 - - -
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 - - - -
financial institutions
Obligations with public bond Adjust. Ch$ 34,122,856 4.75 - -
Serie C
Obligations with public bond Adjust. Ch$ - 35,828,999 5.8
Serie D
Long-term Creditors Dollars - - - -
Long-term Creditors Adjust. Ch$ - - - -
Long-term Reserves Dollars - - - -
Long-term Reserves Adjustable Ch$ - - - -
Deferred Taxes Non-adjust. Ch$ - - - -
Total Long-term Liabilities
- Dollars - - - -
- Adjust. Ch$ 34,122,856 - 35,828,999 -
- Non-adjust. Ch$ - - - -
38. Penalties
In the 2004 and 2003 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.
39. Subsequent Events
On Jun 22, 2004 the Company agreed paying dividend N(degree) 158 of Ch$ 20 per
share over 64,000,000 shares (Th Ch$ 1,280,000) which was made effective on
July 15, 2004.
There have not been subsequent events recorded that could significantly affect
the Company's economic and financial situation since the closing date of the
financial statements and the issue of this report.
40. Environment
Following its permanent concern to preserve the environment, as of June 30,
2004 the Company has paid Th Ch$ 2,644 for assessments for this concept, which
have been charged to 2004 fiscal year result.
During fiscal year 2003 the Company made investments of Th Ch$ 206,705 which
correspond to the purchase of NOX emmissions treatment equipment for new
Furnace B.
41. TIME DEPOSITS
As of June 30, 2004 and 2003 the Company presents the following information:
INSTITUTION Currency 2004 2003
Th Ch$ Th Ch$
------------------------------ -------- --------- ----------
Banco de A. Edwards (Chile) US$ 2,446,112
Banco Santander US$ 4,510,021
Banco Deutsche Bank Chile S.A. US$ 2,397,748
Banco Santander N.Y. US$ 1,091,155
Banco Santander $ 5,004,267 0
--------- ----------
TOTAL 5,004,267 10,445,036
========= ==========
42. STOCK TRANSACTIONS
During 2004 and 2003 fiscal years, the following stock transactions were
carried out by members of the board, controlling stockholders, related
individuals and entities.
TRANSACTIONS OF INDIVIDUALS RELATED TO MEMBERS OF THE BOARD
NAME 2004 2003
--------------- ---------------
Initial Purchase Sale Purchase Sale
----------------------------- ------- -------- ---- -------- ----
Asesorias Portofino Ltda. BSG 21,000 0 0 0
Inmobiliaria Villarrica Ltda. RCV 181,669 0 0 0
Vial de Claro Maria Luisa RCV 650 0 0 0
o BSG related with Director Mr. Baltazar Sanchez
o RCV related with the President Mr. Ricardo Claro
TRANSACTIONS OF DIRECTORS, MANAGEMENT AND ACCOUNT INSPECTORS
None.
TRANSACTIONS OF MAJORITY SHAREHOLDERS
None.
43. DISTRIBUTION OF SHAREHOLDERS
The distribution of stockholders as of June 30, 2004 and 2003 is the
following:
% of Shareholding No. of Shareholders
------------------ --------------------
TYPE OF SHAREHOLDER 2004 2003 2004 2003
----------------------------- ----- ------ ----- -----
10% or more shareholding 34.03 34.03 1 1
Less than 10% shareholding
with investment equal to or
higher than 200 UF 65.84 65.83 276 269
Less than 10% shareholding
with investment lower than
200 UF 0.13 0.14 741 781
TOTAL 100.00 100.00 1,018 1,051
CONTROLLER OF
THE COMPANY 52.14 52.14 3 3
44. BOARD COMPENSATION
As of June 30, 2004 and 2003 payments were made for compensation and profit
sharing ihn the amount of Th Ch$ 264,421 and Th Ch$ 715,991, respectively,
according to the following detail:
2004 2003
ThCh$ ThCh$
------- -------
Share of previous fiscal year profits 257,061 710,664
Compensation for assistance to sessions 5,576 3,977
Compensation for Board Committee 1,784 1,350
------- -------
TOTAL 264,421 715,991
======= =======
On the other hand, reserves were made for participation in profits for fiscal
year 2004 in the amount of Th Ch$ 285,011 (Th Ch$ 118,306 in 2003).
RELEVANT EVENTS
On June 23, 2004, the SVS was informed that in the previous day, the Board of
the Company had approved a US$ 210 million investment plan, in order to
duplicate the production of glass containers in a 10 year period.
The first stage of the development plan considers the construction of a new
plant, equipped with 4 new fabrication lines and a furnace with a production
capacity of 360 tons per day, which supposes a US$ 110 million investment and
that would be financed by a combination of internal resources and credits.
Start of operations is scheduled for 2006 and will allow to increase the
present capacity of production by 35%.
The following stages of expansion imply adding 7 fabrication lines and 2
furnaces with production capacities over 400 tons per day, which will be
materialized in successive stages, in line with market needs.
CRISTALERIAS DE CHILE S.A.
RATIO ANALYSIS OF THE FINANCIAL STATEMENTS AS OF JUNE 30, 2004
1.- FINANCIAL INDICATORS
06-30-2004 06-30-2003 12-31-2003
---------- ---------- ----------
LIQUIDITY
Current liquidity times 5.81 5.12 5.98
Acid ratio times 5.31 4.69 5.50
INDEBTEDNESS
Leverage ratio times 0.55 0.59 0.55
Short-term debt % 14.39 14.97 12.79
Long-term debt % 85.61 85.03 87.21
Interest expenses coverage times 4.25 1.87 2.14
ACTIVITY
Total assets MM Ch$ 364,945 366,503 356,395
Investments MM Ch$ 3,179 15,075 22,804
Disposal of property MM Ch$ 49 111 137
Inventory turnover times 12.2 16.1 12.7
Inventory permanence days 29.5 22.4 28.4
RESULTS
Sales MM Ch$ 33,298 33,524 75,146
Costs of sales MM Ch$ 20,400 21,318 44,993
Operating income MM Ch$ 10,135 9,685 24,541
Interest expenses MM Ch$ 2,393 2,484 4,880
Non-operating income (loss) MM Ch$ (1,449) (5,986) (16,588)
E.B.I.T.D.A. MM Ch$ 15,509 9,402 21,066
After-tax income MM Ch$ 7,125 2,958 6,478
PROFITABILITY
Return on equity % 3.1 1.3 2.8
Return on assets % 1.9 0.9 1.8
Return on operating assets % 9.6 9.4 23.1
Profit per share $ 111.3 45.9 101.2
Return on dividends % 1.4 2.3 2.4
Current liquidity Ratio of current assets to current liabilities.
Acid ratio: Ratio of uncommitted funds to current liabilities.
Leverage ratio: Ratio of total current liabilities to net worth.
Interest Expenses Coverage: 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
E.B.I.T.D.A. Earnings before interest, taxes, depreciation,
amortization, and extraordinary items.
Return on dividends: Sum of dividends paid in the last twelve months
divided by market price of stock at closing of
period.
The main trends observed in the indicators of the first half of 2004 are the
following:
LIQUIDITY INDICES
Despite an increase in current assets with respect to December 2003, liquidity
indices decrease slightly due to higher provisions and notes payable.
INDEBTEDNESS INDICES
The indebtedness index remains almost unvaried for the analyzed period.
Indebtedness with banks, which corresponds to syndicated loan of US$50
million, shows a slight increase in chilean peso terms, due to the variation
of the exchange rate that passed from Ch$ 593,80 in December 2003 to Ch$
636,30 as of June 30, 2004.
The interest expenses coverage ratio shows an increase with respect to the
previous year, due to higher net income during the first half of 2004.
ACTIVITY INDICES
Inventory turnover and permanence deteriorated slightly due an increase in
stock of finished products. This is the result of stationality of the glass
demand.
RESULTS
The operating result shows an increase with respect to June 2003 due to lower
costs of sales.
Likewise, the non-operating result shows a decrease of the loss as a result of
the positive exchanges differences balance registered during the present
semester.
PROFITABILITY INDICES
Profitability and equity indices show an increase with respect to March and
December 2003, due to a higher net income during the present fiscal year.
On the other hand, return on dividends shows a decrease with respect to the
previous year, due to a lower dividends distributed during the last 12 months.
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, 2004, there were financial investments in stocks recorded
according to their purchase price of Th Ch$ 4,188 million, whose market value
on the same date was Th Ch$ 5,410 million.
3. RESULTS AS OF JUNE 2004
3a. Individual Result
The Company had non-consolidated sales of Ch$ 33,298 million, compared to Ch$
33,524 million in the previous fiscal year. Volumes sold increased by 7.4%,
reaching 120,393 tons., mainly due to higher sales of bottles for wine, the
returnable beer and food markets; partially compensated by lower sales to the
non-returnable beer, liquor and soft drinks markets. Average prices declined
by 7.5%, mainly explained by the strong decrease in the US$/Peso exchange rate
that passed from Ch$ 723,66 per to dollar on average during the first semester
of 2003 to Ch$ 608,22 per dollar on average during the first semester of 2004.
Operating income reached Ch$ 10,135 million, 4.6% over 2003.
Non-operating result was a Ch$ 1,449 million loss, which compares to a Ch$
5,986 million loss in 2003. The former is mainly explained by an income from
exchange differences of Ch$ 1,391 million in 2004, compared to a Ch$ 3,617
million loss in 2003. During 2004 a higher loss in Cristalchile Comunicaciones
(owner of 50% of Metropolis -Intercom) is registered and a lower income in
Envases CMF. The former was partially compensated by higher income in CIECSA
and Vina Santa Rita.
3b. Result in Subsidiaries
Santa Rita's net income reached Ch$ 3,553 million, 23.3% over 2003. In the
local market, prices increased by 10.0% in real terms, while volumes increased
by 9.5%. Sales in this market increased by 20.4% reaching Ch$ 17,383 million.
During the period, export volume sales increased by 6.6%, representsenting
50.2% of total revenues, in the amount of US$ 30.0 million (US$ 26.8 million
in 2003). Operating income reached Ch$4,149 million compared with Ch$ 4,997
million in 2003, fundamentally due to higher costs of musts and a decrease of
the Peso/US$ exchange rate that affects export returns. Santa Rita's average
price in dollars per case for the export market reached US$ 34.1 (US$ 32.4 in
2003), while the average price for the industry was US$ 24.3 per case (US$
23.7 in 2003). Santa Rita
had a Ch$ 364 million non-operating income, compared to a Ch$ 1,385 million
loss in 2003, mainly due to a income from exchange differences of Ch$ 965
million compared with Ch$ 740 million loss in 2003.
Red Televisiva Megavision, CIECSA's main subsidiary, registered a Ch$1,125
million operating income, compared with an Ch$ 814 million operating income in
2003. MEGA reached the first place in audience with an audience viewership
share of 25.4% during the period(1) (22.7% in 2003). Net sales increased by
8.3% reaching Ch$ 12,341 million, due to an increase in live programming,
which has resulted in higher audiendce levels. MEGA had an Ch$ 811 million net
income (Ch$ 210 million income in 2003). CIECSA's net income was Ch$ 927
million, compared to Ch$ 75 million income the previous year.
Envases CMF S.A. registered a Ch$ 298 million net income in 2004 compared with
a Ch$1,226 million net income in 2003. This is mainly explained by the
non-operating result, which during 2003 registered a net income from price
level restatement and exchange differences of Ch$ 435 million, compared to a
Ch$ 205 million loss during the present period. Sales reached Ch$ 14,941
million during the period compared with Ch$ 16,375 million in 2003. Volume
sales decreased by 4.1%, reaching 10,557 tons, due to a decline in pre forms
exports and lower sales of one-way formats; while average prices decreased by
5.1% influenced by the decrease of the Peso/US$ rate of exchange. As a result
the aforementioned operating income reached Ch$ 1,191 million, compared with
Ch$ 1,615 million in 2003.
In the cable TV area, Cristalchile Comunicaciones S.A. (99.99% owned by
Cristalerias), is the owner of 50% of Cordillera Comunicaciones Ltda., which
in turn is the owner of Metropolis-Intercom S.A. During 2004,
Metropolis-Intercom S.A. registered sales of Ch$ 22,186 million, compared with
Ch$ 22,408 million in 2003. Metropolis-Intercom had a net loss of Ch$ 5,962
million, compared with a net loss of Ch$ 4,845 million in 2003. This lower
result is mainly due to a one-time Ch$ 775 million charge, that affects the
non-operating result of the company. Metropolis-Intercom's EBITDA reached
Ch$3,192 million during the period (Ch$ 2,944 million in 2003). The latter
includes a depreciation charge of Ch$ 7,338 million (Ch$ 6,672 million in
2003) corresponding to the HFC network adquired in July 2000. The company
ended the period with 223,820 basic subscribers (237,324 in 2003), 28,970
premium service subscribers (33,440 in 2003), 38,503 broadband internet
subscribers (31,5% over 2003) and 9,255 IP telephony subscribers.
As a result of the above mentioned and a negative goodwill amortization charge
through Cordillera Comunicaciones of Ch$ 2,088 million during the year (Ch$
2,095 million in 2003), Cristalchile Comunicaciones recorded a net loss of Ch$
4,041 million (net loss of Ch$3,468 million in 2003).
INVESTMENTS
-----------------------
(1) Measured between 6:30 A.M. and 1:30 A.M. (i.e:19 hours a day) from Monday
through Sunday.
On June 23, 2004, Cristalerias de Chile announced that it will invest US$210
million in a development plan that will allow it to duplicate its glass
production installed capacity - from 300 thousand tons per year to 600
thousand tons per year- and adecquately attend the increasing demand of its
customers.
The initiative, that would be materialized in a term of up to 10 years, was
approved unanimously by the Board and contemplates materialization in
successive stages, according to market needs.
The first stage of the development plan considers the construction of a new
plant, equipped with 4 new fabrication lines and a furnace with production
capacity of 360 tons per day, that supposes USS 110 million investment and
that would be financed by a combination of internal resources and credits.
Start up of operations is scheduled for 2006 and will allow to increase the
present production capacity by 35%.
Following stages of the expansion imply adding 7 fabrication lines and 2
furnaces with production capacities over 400 tons per day.
4. CASH FLOW STATEMENT
As of June 30, 2004 a total net positive flow of Ch$ 9,119 million was
generated, which is explained by a positive flow generated by operating
activities of Ch$ 18,827 million, which was decreased by a negative financing
flow of Ch$2,595 million and a negative flow of investment activities for
Ch$7,113 million.
The operating flow corresponds basically to the collection of sales and
financial interests and other income received that were reduced in part by
payment to suppliers, taxes and financial interests.
The negative financing flow is especially explained by the payment of
dividends.
The investment flow is mainly explained by the incorporation of fixed assets
for Ch$ 3,356 million, and loans granted to related companies for Ch$ 3,805
million.
The above mentioned results in an increase in the final balance of cash and
cash equivalent, which passed from Ch$ 60,480 million as of December 31, 2003
to Ch$ 69,016 million as of June 30, 2004.
According to the current regulations of the SVS and the Association of
Accountants of Chile, time deposits and agreements with due date of less than
90 days have been considered as cash and cash equivalent.
5. RISKS ANALYSIS
a. Interest rates
The Company is exposed to the risk of fluctuations in interest rates on its
long-term debt, corresponding to a US$50 million loan, which was negotiated
annual rate of Libor plus 0.8% percentage points. In addition, the Company
issued bonds in two series for a total equivalent to UF 4.1 million, for a
period of 6 and 21 years, and which pay a fixed rate of 4.75% and 5.8%
respectively (the actual placement rate was 5.3% and 6.5% respectively).
As of June 30, 2004, the Company had available funds in the amount of
Ch$67,545 million, invested at different terms in financial instruments such
as time deposits, bonds, fixed rate mutual funds and agreements with resale
commitment. That amount does not include Ch$ 8,539 million in bonds with
maturity on September 15, 2005, and an investment in shares for Ch$ 4,186
million.
Currently the Company does not use secondary financial instruments to reduce
risk in the event of fluctuations in interest rates. This policy will be
studied permanently to evaluate the alternatives offered by the market.
b. Exchange rate
The Company maintains liabilities in dollars of US$64.7 million, which
represent 11.3% of its assets, and which include a balance of a long-term
syndicated loan of US$50 million.
As of June 30, the Company has investments in dollars of US$54.9 million in
time deposits, bonds and fixed rate mutual funds. In addition, also has
investments in EUROS 37.5 million in fixed rate and fixed rent instruments.
Likewise it also has Dollar purchase future contracts of US$37.6 million which
are compensated by sale future contracts of US$ 60.6 million.
On the other hand, aproximately 35% of the Company's revenues are adjustement
by the exchange rate variation. Costs in foreing currency represent
approximately 27% of the total costs.
FECU (Standardized Quarterly Financial Report)
1. IDENTIFICATION
1.01.05.00 Firm Name
CRISTALERIAS DE CHILE S.A.
1.01.04.00 Company RUT 90331000-6
1.00.01.10 Starting date 1/1/2004
1.00.01.20 Closing date 6/30/2004
1.00.01.30 Type of Currency Chilean Pesos
1.00.01.40 Type of Financial Statements Consolidated
Independent Auditors' Report
Referred to Interim Consolidated Financial Statements
As of June 30, 2004
To the Shareholders and Directors of
Cristalerias de Chile S.A.:
We have revised the general consolidated balance sheets of Cristalerias de
Chile S.A. and subsidiaries as of June 30, 2004 and 2003 and the corresponding
consolidated statements of income and cash flows for the six months periods
ended on those dates. These financial statements and their corresponding notes
are the responsibility of Cristalerias de Chile S.A. and subsidiaries'
management. The Ratio Analysis and Relevant Events attached are not part of
these financial statements; therefore this report does not extend to them.
We have effected our revisions in accordance with audit norms established in
Chile for a revision of interim financial information. A revision of interim
financial information consists mainly in applying analytic revision procedures
of the financial statements and effect inquiries to the responsible financial
and accounting personnel. The extent of this revision is substancially lower
than an audit effected according to generally accepted accounting principles
in Chile, in which case the objective is to express an opinion on financial
statements as a whole. Consequently, the interim consolidated financial
statements as of June 30, 2004 and 2003 have not been audited and, therefore,
we are not in condition for expressing, nor we express an opinion.
Based on our revision of the interim consolidated financial statements as of
June 30, 2004 and 2003, we have no knowledge of significant adjustments needed
to be made to them in order for them to be in accordance with generally
accepted accounting principles in Chile.
Ruben Lopez D. Ernst & Young Ltda.
R.U.T.: 9.385.460-8 Auditors' R.U.T.: 77.802.430-6
Santiago, July 28, 2004
ASSETS
2.0 FINANCIAL STATEMENTS
2.01 BALANCE SHEET
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance: Consolidated
ASSETS NOTE No. 06-30-04 06-30-03
------------------------------------------------------- -------- ------------- ------------
5.11.00.00 TOTAL CURRENT ASSETS 191,655,613 185,121,779
5.11.10.10 Cash 2,337,271 2,588,476
5.11.10.20 Time deposits 41 5,384,461 12,151,735
5.11.10.30 Marketable securities (net) 4 67,806,888 67,718,838
5.11.10.40 Debtors from sales (net) 5 40,919,449 35,240,688
5.11.10.50 Documents receivable (net) 5 4,765,988 4,541,128
5.11.10.60 Sundry debtors (net) 5 3,013,052 1,759,408
5.11.10.70 Doc. & accts receivable 6 3,691,705 575,881
related Co.
5.11.10.80 Inventories (net) 7 47,218,588 45,041,807
5.11.10.90 Recoverable taxes 8 1,480,533 2,049,043
5.11.20.10 Prepaid expenses 1,985,130 1,779,083
5.11.20.20 Deferred taxes 8 1,741,034 980,123
5.11.20.30 Other current assets 10 11,311,514 10,695,569
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 12 135,583,958 140,831,612
5.12.10.00 Land 12 13,442,643 13,175,721
5.12.20.00 High rises & infrastructure 12 64,321,481 61,369,521
5.12.30.00 Machinery & equipment 12 148,348,627 143,372,862
5.12.40.00 Other fixed assets 12 11,729,704 10,587,816
5.12.50.00 Positive goodwill from 12 6,659,823 7,767,850
technical revaluation of
fixed assets
5.12.60.00 Depreciation (minus) 12 (108,918,320) (95,442,158)
5.13.00.00 TOTAL OTHER ASSETS 136,210,144 143,685,545
5.13.10.10 Investment in related companies 14 100,763,973 107,216,045
5.13.10.20 Investment in other companies 15 788,803 831,373
5.13.10.30 Negative goodwill 16 8,995,298 9,364,453
5.13.10.40 Positive goodwill (minus) 0 0
5.13.10.50 Long-term debtors 5 204,430 173,463
5.13.10.60 Doc. & accts receivable 6 1,106,556 2,883
related Co.
5.13.10.65 Long-term deferred taxes 0 0
5.13.10.70 Intangibles 17 11,913,536 11,874,078
5.13.10.80 Amortization (minus) 17 (1,325,968) (1,109,319)
5.13.10.90 Other 18 13,763,516 15,332,569
5.13.20.10 Long-term leasing contracts 0 0
(net)
5.10.00.00 TOTAL ASSETS 463,449,715 469,638,936
LIABILITIES
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance: Consolidated
LIABILITIES NOTE No. 06-30-04 06-30-03
------------------------------------------------------- -------- ------------- ------------
5.21.00.00 TOTAL CURRENT LIABILITIES 52,198,981 56,297,454
5.21.10.10 Short-term oblig. Banks & 19 6,968 19,951
Fin. Inst.
5.21.10.20 Short-term portion - Long-term 19 2,833,925 4,038,923
oblig. Banks & Financial
Institutions
5.21.10.30 Obligations with the public 0 0
(notes)
5.21.20.40 Short-term portion oblig with 22 1,740,471 1,735,084
public
5.21.10.50 Long-term oblig. due within 74,279 241,480
1 year
5.21.10.60 Dividends payable 652,088 510,759
5.21.10.70 Accounts payable 16,114,615 18,952,645
5.21.10.80 Notes payable 3,184,042 4,049,596
5.21.10.90 Sundry creditors 891,189 2,546,908
5.21.20.10 Notes & accts payable related 6 1,104,714 745,904
Co.
5.21.20.20 Provisions 23 17,245,411 12,045,713
5.21.20.30 Withholdings 2,293,589 1,471,884
5.21.20.40 Income tax 0 0
5.21.20.50 Earned income 4,136,733 3,992,961
5.21.20.60 Deferred taxes 8 0 0
5.21.20.70 Other current liabilities 20 1,920,957 5,945,646
5.22.00.00 TOTAL LONG-TERM LIABILITIES 136,721,197 144,905,248
5.22.10.00 Oblig with Banks & Financial 21 35,266,974 42,039,039
Inst.
5.22.20.00 Long-term oblig with public 22 90,179,235 90,425,569
(bonds)
5.22.30.00 Long-term notes payable 0 0
5.22.40.00 Long-term sundry debtors 205,331 352,343
5.22.50.00 Long-term notes & accts. 6 0 0
payable related companies
5.22.60.00 Long-term provisions 23 6,417,630 7,578,301
5.22.70.00 Long-term deferred taxes 8 4,652,027 4,509,996
5.22.80.00 Other long-term liabilities 0 0
5.23.00.00 MINORITY INTEREST 26 39,137,297 37,421,878
5.24.00.00 TOTAL EQUITY 27 235,392,240 231,014,356
5. 24.10.00 Paid-in capital 27 65,396,749 65,137,753
5. 24.20.00 Reserve capital revaluation 27 523,174 716,515
5. 24.30.00 Premium in sale of own shares 27 28,097,372 28,069,388
5. 24.40.00 Other reserves 27 7,499,397 9,155,080
5. 24.50.00 Retained earnings (addition 133,875,548 127,935,620
of codes 5.24.51.00 to
5.24.56.00)
5.24.51.00 Reserve future 27 128,030,273 125,943,731
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) for 27 7,125,275 2,957,649
the year
5.24.55.00 Prov. dividends 27 (1,280,000) (965,760)
(minus)
5.24.56.00 Accr. deficit dev. 27 0 0
period
5.20.00.00 TOTAL LIABILITIES 463,449,715 469,638,936
INCOME STATEMENT
2.02 INCOME STATEMENT
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance: Consolidated
INCOME STATEMENT NOTE No. 06-30-04 06-30-03
------------------------------------------------------- -------- ------------- ------------
5.31.11.00 OPERATING INCOME 15,734,425 15,612,854
5.31.11.10 Gross Margin 28,924,101 27,658,797
5.31.11.11 Sales 80,298,906 76,938,352
5.31.11.12 Costs (minus) (51,374,805) (49,279,555)
5.31.11.20 Adm. & sales expenses (13,189,676) (12,045,943)
(minus)
5.31.12.00 NON-OPERATING RESULTS (4,239,480) (9,885,097)
5.31.12.10 Interest income 989,141 1,668,190
5.31.12.20 Income investments 14 969,006 1,750,507
Rel. Co.
5.31.12.30 Other non-operating 28 667,949 416,672
income
5.31.12.40 Loss investments Rel. 14 (4,135,296) (3,670,115)
Co. (-)
5.31.12.50 Amortization 16 (322,921) (319,589)
neg.goodwill (-)
5.31.12.60 Interest expenses (3,337,812) (3,498,063)
(minus)
5.31.12.70 Other non-operat 28 (1,179,937) (1,100,513)
expenses (-)
5.31.12.80 Price level 29 (307,756) (668,200)
restatement
5.31.12.90 Exchange differences 30 2,418,146 (4,463,986)
5.31.10.00 RESULTS BEFORE INCOME TAX 11,494,945 5,727,757
AND EXTRAORDINARY ITEMS
5.31.20.00 INCOME TAX 8 (2,670,024) (1,437,191)
5.31.30.00 EXTRAORDINARY ITEMS 31 0 0
5.31.40.00 PROFIT (LOSS) BEFORE 8,824,921 4,290,566
MINORITY INTEREST
5.31.50.00 MINORITY INTEREST 26 (1,699,646) (1,332,917)
5.31.00.00 NET INCOME (LOSS) 7,125,275 2,957,649
5.32.00.00 Amortization of positive goodwill 0 0
5.30.00.00 INCOME (LOSS) FOR THE YEAR 7,125,275 2,957,649
DIRECT CASH FLOW STATEMENT
2.03 CASH FLOW STATEMENT
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance: Consolidated
DIRECT CASH FLOW STATEMENT NOTE No. 06-30-04 06-30-03
------------------------------------------------------- -------- ------------- ------------
5.41.11.00 NET FLOW FROM OP. ACT. 21,112,235 21,030,268
5.41.11.10 Collection from sales debtors 93,799,010 98,599,279
5.31.11.20 Interests received 4,272,766 2,211,277
5.31.11.30 Dividends & other 1,079,693 105,094
distributions funds received
5.31.11.40 Other income 1,153,195 2,538,990
5.31.11.50 Payments to suppliers & (66,593,878) (68,960,247)
personnel (-)
5.31.11.60 Interest paid (minus) (3,818,916) (3,246,966)
5.31.11.70 Income tax paid (minus) (1,559,357) (2,794,477)
5.31.11.80 Other expenses paid (minus) 33 (714,629) (2,686,088)
5.31.11.90 V.A.T. & other similar paid (6,505,649) (4,736,594)
(minus)
5.41.12.00 CASH FLOW FINANCING ACTIVITIES (3,929,584) (10,175,302)
5.41.12.05 Proceeds from share issue 0 0
5.41.12.10 Loans received 0 0
5.41.12.15 Obligations with the public 0 0
5.41.12.20 Secured loans from related 54,017 72,453
companies
5.41.12.25 Other loans from related 0 713
companies
5.41.12.30 Other financing resources 0 0
5.41.12.35 Dividends paid (minus) (3,135,444) (8,121,964)
5.41.12.40 Capital distributions (minus) 0 0
5.41.12.45 Repayment of loans (minus) (823,133) (1,842,090)
5.41.12.50 Payment of obligations with 0 (213,916)
the public (-)
5.41.12.55 Repayment of secured loans (25,024) (70,498)
from 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 33 0 0
(minus)
5.41.13.00 CASH FLOW FROM INVESTING (11,196,003) (15,754,970)
ACTIVITIES
5.41.13.05 Sale of fixed assets 69,055 286,959
5.41.13.10 Sale of permanent investments 0 0
5.41.13.15 Sale of other investments 33 398 0
5.41.13.20 Proceeds secured loans to 0 0
related Comp.
5.41.13.25 Proceeds other loans to 28,819 1,965,532
related companies
5.41.13.30 Other investment income 33 0 1,965,366
5.41.13.35 Incorporation of fixed assets (7,252,623) (19,573,990)
(minus)
5.41.13.40 Capitalized interests payment 0 0
(minus)
5.41.13.45 Permanent Investments (minus) (437) (624)
5.41.13.50 Investments in financial 0 (70,331)
instruments (minus)
5.41.13.55 Other loans to related (3,803,547) 0
companies (minus)
5.41.13.60 Other loans to related (2,465) (8,123)
companies (minus)
5.41.13.65 Other distrib of funds on 33 (235,203) (319,759)
invest activities (-)
5.41.00.00 TOTAL NET CASH FLOW FOR THE PERIOD 5,986,648 (4,900,004)
5.42.20.00 EFFECT OF INFLATION ON CASH & CASH EQUIV. 82,812 (1,636,243)
5.41.00.00 NET CHANGE IN & CASH EQUIVALENT 6,069,460 (6,536,247)
5.42.00.00 CASH & CASH EQUI AT BEGINNING OF PERIOD 76,213,878 94,889,433
5.43.00.00 CASH & CASH EQUIV BALANCE AT END OF PERIOD 82,283,338 88,353,186
INCOME STATEMENT RECONCILIATION
CONCILIATION BETWEEN CASH FLOW GENERATED BY THE OPERATION'S ACTIVITIES AND
THE INCOME STATEMENT FOR THE YEAR
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance: Consolidated
CASH FLOW - INCOME STATEMENT RECONCILIATION NOTE No. 06-30-04 06-30-03
------------------------------------------------------------------- -------- ------------ ------------
5.50.10.00 Profit (Loss) for the year 7,125,275 2,957,649
5.50.20.00 Profit (Loss) in sale of assets 98,723 26,467
5.50.20.10 (Profit) Loss in sale of fixed assets 98,529 26,467
5.50.20.20 Profit in sale of investments (minus) 0 0
5.50.20.30 Loss in sale of investments 194 0
5.50.20.40 (Profit) Loss in sale of other assets 0 0
5.50.30.00 Non-cash charges (credits) to results 15,976,546 18,745,164
5.50.30.05 Depreciation for the year 12 7,743,099 7,057,014
5.50.30.10 Amortization of intangibles 522,168 622,517
5.50.30.15 Write-offs and provisions 2,194,521 777,688
5.50.30.20 Accrued earnings from investments in related 14 (969,006) (1,750,507)
com. (minus)
5.50.30.25 Accrued losses from investments in related Co. 14 4,135,296 3,670,115
5.50.30.30 Negative goodwill amortization 16 322,921 319,589
5.50.30.35 Positive goodwill amortization (minus) 0 0
5.50.30.40 Price level restatement 29 307,756 668,200
5.50.30.45 Net exchange difference 30 (2,418,146) 4,463,986
5.50.30.50 Other non-cash credits to results (minus) (769,854) (121,554)
5.50.30.55 Other non-cash debits to results 4,727,791 3,038,116
5.50.40.00 Changes in Assets affecting cash flow (incr) decreases (22,180,123) (21,061,717)
5.50.40.10 Debtors from sales (6,141,083) (7,384,403)
5.50.40.20 Inventory (15,364,501) (12,718,926)
5.50.40.30 Other assets (674,539) (958,388)
5.50.50.00 Changes in liabilities affecting cash flow increases 18,572,168 19,029,788
(decr)
5.50.50.10 Accounts payable related to results for the 17,758,985 21,060,125
year
5.50.50.20 Interests payable (760,016) (78,592)
5.50.50.30 Income tax payable (net) 1,446,716 (745,545)
5.50.50.40 Other accounts payable related to non-oper 533,207 (83,397)
results
5.50.50.50 VAT and other taxes payable (net) (406,724) (1,122,803)
5.50.60.00 Profit (Loss) of minority interest 1,699,646 1,332,917
5.50.00.00 NET OPERATING CASH FLOW 21,112,235 21,030,268
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 (S.V.S.).
The subsidiary S.A. Vina Santa Rita is registered in the Securities Register
under number 390 of the S.V.S.
02. Applied Accounting Criteria
APPLIED ACCOUNTING CRITERIA
a) Accounting Period
These financial statements correspond to the period between January 1 and June
30 of 2004 and 2003.
b) Preparation basis of financial statements:
These consolidated financial statements as of June 30, 2004 and 2003 have been
prepared on the basis of generally accepted accounting principles and specific
norms issued by the S.V.S.; the former prevailing in case of discrepancies.
c) Presentation Basis
For comparison purposes, the financial statements and figures included in the
disclosures for the 2003 fiscal year are presented updated according to
non-accounting terms as of June 30, 2004 by 0.6%.
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.
The company Ciecsa consolidated includes the balances of its subsidiary Red
Televisiva Megavision S.A. in which it has a 99.99% stake of its net worth and
of Simetral S.A. in which it has a 81.5% stake of its net worth.
S.A. Vina Santa Rita consolidated includes the balances of its subsidiaries
Vina Carmen S.A., with a 99.9% stake in its net worth, Vina Centenaria S.A.,
with 100% stake, Vina Dona Paula S.A. with 100% stake and Sur Andino S.A.,
with a 100% stake in 2004 and 2003.
Amounts and effects of transactions between consolidated companies have been
eliminated and the stake of minority investors is presented in the balance
sheet as Minority Interest.
e) Adjustment for Currency Devaluation (Price Level Restatement)
Consolidated financial statements have been restated considering the variation
in the purchasing power of the currency, occurred in the first half of 2004,
that reached 0.8% (1.1% in 2003).
For financial effects, effective variations occurred in every month of years
2003 and 2004 have been considered, with respect to June 2003 and 2004. For
tax effects, negative variations occurred duing some months of 2003 and 2004
with respect to June 2003 and 2004, have been equaled to zero, according to
instructions of the Chilean Internal Revenue Service, not affecting
significantly the financial statements.
f) Conversion Basis
Balances in foreign currency and indexed currency units (unidades de fomento)
have been converted to pesos at the indicated parities:
2004 2003
--------- ---------
Ch$ Ch$
U.S. Dollar 636.30 699.12
Pound Sterling 1,157.12 1,157.48
Swedish Crown 509.16 517.18
EURO 775.88 803.86
Unidad de Fomento 17,014.95 16,959.67
g) Marketable Securities and Time Deposits
Transactions in short-term fixed income instruments are shown at the return
value of the investment, which does not exceed the market value as of June 30,
2004 and 2003.
Investments in stock are shown at the lowest value between the corrected cost
and market value.
Time deposits are shown at the value of the investment, plus adjustments and
interest accrued as of the date of the fiscal year.
Investments carried out by the Company in Celulosa Arauco bonds are registered
under "Other" in the long-term, and are presented at investment value plus
accrued interests up to the closing date of the fiscal year of the financial
statements, without adjusting to the market value because there is the
intention of keeping the bonds until their maturity.
h) Inventory
Inventory of finished products has been valued as of June 30, 2004 and 2003 at
the direct production cost, duly updated, 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.
Television programs inventories at the closing of each fiscal year represent
the value of contracted films and videos and the proportion of repetitions
that are pending exhibition. The actual cost of the programs is charged to
results as they are broadcasted.
i) Bad Debts (Non-collectable)
The Company and subsidiaries have made provision for bad debts that is
deducted from debtors from sales and notes 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 up until June 30, 2004 and 2003.
k) Depreciation of Fixed Assets
Depreciation of these goods is calculated on updated values, according to the
straight-line depreciation method, considering the estimated useful life of
the goods.
l) Assets in Leasing
None.
m) Sales Transactions with Leaseback
None.
n) Intangibles
The corrected purchase value of trademarks of the subsidiary S.A. Vina Santa
Rita, that are amortized for a period of 40 years, and the costs for trademark
registration, that are amortized for a period equivalent to the maturity of
the renovation, are presented as intangibles. The subsidiary Ciecsa
consolidated includes the frequency of TV channel 9, which has an amortization
period of 40 years, and the amortization method is that of "Increasing
Digits".
o) Investments in Related Companies
According to Circular No. 1697 of the SVS, the Equity Method (Valor
Patrimonial Proporcional - V.P.P.) has been used for the valuation of
investments in related companies effected prior to January 01, 2004. This
method consists in assigning the investment an equivalent value to the
percentage of the holding that corresponds to the Company in the book value of
the issuer, and acknlowledge proportionally the variations that the latter
experiments. Investments abroad have been valued according to the provisions
of Technical Bulletin No. 64 of the Chilean Accountants Association A.G.
p) Goodwill Amortization
Goodwill amortization resulted from comparing the price paid for the
investment with the proportional equity value (VPP) that corresponds to the
investment in the company's equity.
Amortizations of these values are carried out in a period of twenty years.
As of June 30, 2004 and 2003 there is no positive goodwill.
q) Operations with repurchase and resale agreement
Financial instruments acquired with a resale agreement are shown at their
purchase value plus interest and adjustments accrued at the closing of the
fiscal year, and they are
classified under "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 lower value
obtained compared to par value is amortized proportionally to payment or
redemption of capital installments of those bonds as well as the corresponding
expenses for their placement.
s) Deferred Taxes and Income Tax
The Company and its subsidiaries have complied with deferred taxes, in
accounting terms, as established in Technical Bulletin No. 60 and 71 of The
Accountants Association of Chile A.G. and the norms indicated in circular
1,466 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 Company has established a reserve for all of the personnel's severance
payment, according to the union contracts signed with their workers. This
reserve is shown at the present value of the obligation.
u) Sales
The consolidated companies recognize operating income on an accrued basis
according to generally accepted accounting principles in Chile.
v) Derivative Contracts
The Company and its subsidiaries Ciecsa S.A. and S.A. Vina Santa Rita maintain
Future Contracts in foreign currency, recorded as established in Technical
Bulletin 57 of the Accountants Association of Chile A.G.
w) Computer Software
The Company and S.A. Vina Santa Rita develop computer software with their own
resources and they also acquire computer packages from third parties.
Disbursements due to own development are charged to results as they are
generated. Computer packages are recorded in Fixed Assets and amortized in 36
months by the Company and in 48 months by the subsidiary S.A. Vina Santa Rita.
x) Research and development expenses
The companies show any expenses in this item directly as a charge to results
as they generate.
y) Cash flow statement:
According to current regulations of the Securities and Insurance Commission
and the Accountants Association of Chile A.G., 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 agreements with maturities over
90 days have been classified in the item "Investments in Financial
Instruments."
CRISTALERIAS DE CHILE S.A.
NOTE 2 - ACCOUNTING CRITERIA USED
COMPANIES INCLUDED IN THE CONSOLIDATED REPORT
Percentage of Shareholding
----------------------------------------------------------
R.U.T. Company Name 06.30.2004 06.30.2003
------------ -------------------------------- --------------------------------------- ----------
Direct Indirect Total Total
------- -------- -------- ----------
96.721.580-5 Cristalchile Comunicaciones S.A. 99.9980 0.0000 99.9980 99.9980
96.767.580-6 Constructora Apoger S.A. 80.0000 0.0000 80.0000 80.0000
96.608.270-4 Ciecsa S.A. 98.4458 0.0000 98.4458 98.2737
86.547.900-K S.A. Vina Santa Rita 54.0970 0.0000 54.0970 54.0970
96.972.440-5 Cristalchile Inversiones S.A. 99.9900 0.0100 100.0000 100.0000
03. Accounting Changes
As of June 30, 2004 and 2003, there have not been any changes in the
accounting criteria applied that affect the consolidated financial statements.
04. Marketable Securities
As of June 30, 2004, this item is composed by the following investments:
a) Th Ch$ 55,251,502 in bonds and fixed rate instruments equivalent to
US$41,048,455 and 37,547,521 EUROS, which mainly correspond to
investments in state bonds and financial institutions of USA, Germany
and Holland, Collateralized Bonds of Private Companies in USA
(guaranteed with accounts receivable) and USA Mortgage Bonds with
state guarantee.
b) Th Ch$ 8,191,207 in investment fund quotas in US$
c) Th Ch$ 4,187,786 in shares
d) Th Ch$ 176,393 for accrued interest of Celulosa Arauco S.A. bonds.
As of June 30, 2003, this item is composed by the following investments:
e) Th Ch$ 54,372,053 in bonds and fixed rate instruments, which mainly
correspond to investments in Treasury Bills bonds, Collateralized
Bonds of Private Companies in USA (guaranteed with accounts
receivable) and USA Mortgage Bonds with state guarantee.
f) Th Ch$ 8,968,712 in investment fund quotas in US$
g) Th Ch$ 4,183,939 in shares.
h) Th Ch$ 194,134 for accrued interest of Celulosa Arauco S.A. bonds.
CRISTALERIAS DE CHILE S.A.
NOTE 4 -MARKETABLE SECURITIES
BALANCE COMPOSITION
Type of Security Book Value
------------------------------------ ---------------------------------
06-30-2004 06-30-2003
---------- ----------
Shares 4,187,786 4,183,939
Bonds 0 0
Shares in mutual funds 0 0
Shares in investment funds 8,191,207 8,968,712
Public tender notes 0 0
Mortgage commitments 0 0
Bonds and fixed rate instruments 55,251,502 54,372,053
Interest Celulosa Arauco S.A. bonds. 176,393 194,134
Total Marketable Securities 67,806,888 67,718,838
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES
SHARES
Unit Market
R.U.T. Company Name Number of Participation Market Investment Corrected
Shares Percentage Value Value Cost
----------------------- ------------------- ---------- ------------- ------ ---------- ---------
96.512.200-1 Bodegas y Vinedos
Santa Emiliana S.A. 63,642,856 9.9980 85 5,409,643 4,187,786
Value Investment
Portfolio 5,409,643 4,187,786
Adjustment Provision 0
Book value, Investment
Portfolio 4,187,786
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES
FIXED RATE INSTRUMENTS
Type of Security Par Book Value Market Reserve
Value Value
------------------------
Amount Rate % (3)
----------------------------------------------------------- ---------- ---------- ---------- ---------- -------
Financial Institutions bonds (USA, Germany and Holland) (1) 29,132,371 29,132,371 1.27 29,132,371 0
US treasury bonds (2) 20,555,448 20,555,448 0.38 20,555,448 0
Collateralized Bonds USA (2) 5,549,780 5,549,780 0.38 5,549,780 0
Call Deposit (2) 13,903 13,903 0.38 13,903 0
Celulosa Arauco bonds (interest)(2) 176,393 176,393 2.80 176,393 0
BBH U.S. Money Market Portfolio (2) 8,191,207 8,191,207 0.48 8,191,207 0
TOTAL 63,619,102 63,619,102 - 63,619,102 -
Note:
(1) The investements have been done in EUROS
(2) Investments in U.S. Dollars
(3) Rate for Period from 01-01-2004 to 06-30-2004.
(4) These investments can be recovered within 48 hrs. notice.
05. Short-Term and Long-Term Debtors
As of June 30, 2004 and 2003, there are balances for short-term debtors in the
amount of Th $48,674,933 (Th $ 41,541,224 in 2003).
The bad debt reserve that amounted Th $ 706,185 in 2004 (Th $708,162 in 2003)
is shown deducting the balances of Debtors from Sales and Documents
receivable.
The balances of Short-term Debtors are shown net of Customer Advance Payments.
In addition, there is a balance of Th Ch$ 204,430 in Long-Term Debtors
(Th Ch$ 173,463 in 2003).
Under "sales debtors", exports made by the subsidiary S.A. Vina Santa Rita
amounting Th Ch$ 9,881,314 as of June 30, 2004 (61.71% of the total), and
Th Ch$ 9,275,695 as of June 30, 2003 (64.83% of the total) are included.
CRISTALERIAS DE CHILE S.A.
NOTE 5 -SHORT AND LONG TERM DEBTORS
Current Assets Over 90 days
-------------------------------------------------------------
Up to 90 days Over 90 days up to 1 year
------------------------ --------------------------------
Item 06-30-2004 06-30-2003 06-30-2004 06-30-2003
---------------------------------------- ---------- ---------- ------------- ------------
Debts from Sales 39,426,955 33,708,403 1,953,474 2,029,879
Estimate of bad debtors - - - -
Documents receivable 4,963,105 4,685,547 48,088 65,148
Estimate of bad debtors - - - -
Misc. Debtors 2,580,540 1,723,996 432,512 35,412
Estimate of bad debtors - - - -
Total Current (net) Long Term
------------------------ --------------------------
Item Subtotal 06-30-2004 06-30-2003 06-30-2004 06-30-2003
---------------------------------------- ---------- ---------- ---------- ---------- ----------
Debts from Sales 41,380,429 40,919,449 35,240,688 0 0
Estimate of bad debtors 460,980 - - - -
Documents receivable 5,011,193 4,765,988 4,541,128 0 0
Estimate of bad debtors 245,205 - - - -
Misc. Debtors 3,013,052 3,013,052 1,759,508 204,430 173,463
Estimate of bad debtors - - - - -
Total Long Term Debtors 204,430 173,463
06. Balances and Transactions with related entities
Balances receivable in the Short-Term as of June 30, 2004 totaled Th Ch$
3,715,261 (Th Ch$ 575,881 in 2003) which correspond mainly to a loan granted
by the parent company to Metropolis-Intercom for Th Ch$ 2,704,725 at an annual
interest rate of 3%, In addition to a loan granted by the subsidiary Ciecsa to
Editorial Zig Zag for Th Ch$ 108,909 (Th Ch$ 164,226 in 2003) including
interests, with maturity on June 2004 at an annual interest rate of 1%, and
advertising sold by Red Televisiva Megavision S.A. to Metropolis-Intercom for
Th Ch$ 120,361 (Th Ch$ 65,025 in 2003). The balance corresponds to invoicing
receivable for Th Ch$ 781,266 (Th Ch$ 346,628 in 2003).
Balances payable in the short term totaled Th Ch$ 1,104,714 at June 30, 2004
(Th Ch$ 745,904 in 2003) mainly corresponding to commercial transactions under
90 days for Th Ch $ 297,574 (Th Ch$ 231,726 in 2003), and dividends payable to
Majority shareholders for Th Ch$ 807,140 (Th Ch$ 514,178 in 2003).
In 2004 there is a balance registered under long-term accounts receivables for
Th Ch$ 1,106,556 (Th CH$ 2,883 in 2003) corresponding to a loan granted by the
parent company to Metropolis-Intercom S.A. for Th Ch$ 855,171 and to
Inmobiliaria Monte Azul S.A. for Th Ch$ 247,128, the balance correspond to
invoices totaling Ch Th$ 4,257 (Ch Th$ 2,883 in 2003).
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCE AND TRANSACTIONS WITH RELATED COMPANIES
DOCUMENTS AND ACCOUNTS RECEIVABLE
Short Term Long Term
------------------------ --------------------------
R.U.T. Company 06-30-2004 06-30-2003 06-30-2004 06-30-2003
------------ ----------------------------------- ---------- ---------- ---------- ----------
89.150.900-6 Vina Los Vascos S.A. 205,021 184,174 0 0
83.032.100-4 Serv. Y Consultorias Hendaya S.A. 3,308 0 0 0
90.684.000-6 Editorial Zig-Zag S.A. 108,909 164,226 0 0
86.881.400-4 Envases CMF S.A. 18,587 37,381 0 0
90.320.000-6 Cia. Electro Metalurgica S.A. 2,683 81 0 0
96.539.380-3 Ediciones Financieras S.A. 0 4,739 0 0
79.753.810-8 Claro y Cia. 0 376 0 0
96.787.775-1 Metropolis Intercom S.A. 2,825,086 65,025 855,171 0
90.160.000-7 Sudamericana de Vapores S.A. 1,769 125 0 0
96793770-3 Ediciones Chiloe S.A. 0 0 4,257 2,883
86963200-7 Forus S.A. 0 34,228 0 0
78936090-1 Inmob. Y Constructora Monte Azul S.A. 0 0 247,128
77489120-K Soc. Agr. Vinedos Collipeumo Ltda. 1,144 0 0 0
0-E Rayen Cura SAIC 525,198 85,526 0 0
Total 3,691,705 575,881 1,106,556 2,883
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
DOCUMENTS AND ACCOUNTS PAYABLE
Short Term Long Term
------------------------ --------------------------
R.U.T. Company 06-30-2004 06-30-2003 06-30-2004 06-30-2003
------------ ----------------------------------- ---------- ---------- ---------- ----------
90.320.000-6 Cia. Electro Metalurgica S.A. 443,096 339,257 0 0
83.032.100-4 Serv. Y Consultorias Hendaya S.A. 245,793 85,701 0 0
89.150.900-6 Vina Los Vascos S.A. 4,048 10,587 0 0
79.753.810-8 Claro y Cia. 27,703 36,098 0 0
96.539.380-3 Ediciones Financieras S.A. 102 1,603 0 0
86.881.400-4 Envases CMF S.A. 183,909 174,279 0 0
90.160.000-7 Cia. Sudamericana de Vapores S.A. 2,930 8,768 0 0
77.658.870-9 Marketing Meter Ltda. 0 391 0 0
86.755.600-1 Inversiones Bayona S.A. 118,251 89,220 0 0
92048000-4 Sud Americana Agencias Maritimas S.A. 53,630 0 0 0
96787750-6 Metropolis Intercom S.A. 97 0 0 0
77489120-K Soc. Agr. Vinedos Collipeumo Ltda. 25,155 0 0 0
Total 1,104,714 745,904 0 0
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
TRANSACTIONS
06-30-2004 06-30-2003
-------------------- ------------------
Description of Effect on Effect on
Company R.U.T. Relationship Transaction Amount Result Amount Result
-------------------- ------------ ----------------- --------------------------- --------- ---------- -------- ---------
Serv. Y Consultorias 83.032.100-4 Majority Services received 648,344 -348,344 655,835 -655,835
Hendaya S.A. shareholder
- Dividends paid 228,310 0 613,337 0
- Services supplied 9,563 9,563 10,459 10,459
- Products sold 102 23 29 11
- Services provided 36,866 -36,866 0 0
- Payment made for own account 0 0 29,061 -29,061
Quemchi S.A. 96.640.360-8 Same Parent Services rendered 5,076 5,076 5,708 5,708
Rayen Cura S.A.I.C. 0-E Indirect affiliate Direct sales 115,741 34,269 123,648 34,289
Navarino S.A. 96.566.900-0 Same Parent Services supplied 5,062 5,062 5,074 5,074
Ediciones Financieras 96.793.77-3 Indirect affiliate Products sold 0 0 3,563 1,341
S.A. - Services purchased 2,318 -2,318 134 -134
- Services received 3 -3 3,770 -3,770
Advertising hired 652 -652 0 0
Advertising 5,592 -5,592 10,452 -10,452
- Advertising hired 652 652 0 0
Envases CMF S.A. 86.881.400-4 Affiliate Materials purchased 291,293 0 268,390 0
- Products sold 195 44 119 44
- Other sales 32,860 0 7,048 0
Forus S.A. 86.963.200-7 Indirect affiliate Advertising hired 4,354 -4,354 0 0
Indirect affiliate Advertising hired 4,354 4,354 127,996 127,996
Vina Los Vascos S.A. 89.150.900-6 Indirect affiliate Direct sales 394,495 96,946 299,626 69,379
- Materials purchased 27,972 0 16,542 0
Cia. Sud-Americana de 90.160.000-7 Same Parent Freight services received 110,545 -15,139 215,690 -21,365
Vapores S.A. - Other Sales 197 0 0 0
- Product sold 1,085 247 4,005 753
Cia. Electro Metalurgica 90.320.000-6 Majority Dividends paid 875,556 0 2,352,111 0
S.A. shareholder
- Materials purchased 4,688 0 2,713 0
- Other Sales 491 0 399 0
- Product sold 2,385 543 0 0
- Payment Made for own Account 0 0 282 0
Claro y Cia. 79.753.810-8 With the Chairman Advice received 69,471 -69,471 82,805 -82,805
- Expenses reimbursement 0 0 9,953 0
- Product sold 197 45 378 213
Inversiones Bayona S.A. 86.755.600-1 Majority Dividends paid 237,684 0 638,519 0
shareholder
Metropolis Intercom S.A. 96.787.750-6 Indirect affiliate Advertising hired 228,684 228,684 127,849 127,849
- Payment Made for own Account 0 0 182 -182
- Long Term Loan granted 855,171 0 0 0
- Short Term Loan granted 2,704,725 0 0 0
- Service Purchased 152 -152 0 0
- Building Rent 762 762 0 0
- Advertising services 15,144 -15,144 4,460 -4,460
- Product sold 0 0 10,917 4,059
Soc Agric. Cullipeumo 77489120-K Indirect Raw Material Purchased 46,070 0 25,762 0
Ltda. - Product sold 551 125 0 0
- Expenses reimbursement 961 0 0 0
Sudamericana Agencias 92048000-4 Indirect Freight services 92,988 -92,988 0 0
Aereas y Maritimas S.A - Other Purchases 10,864 -9,268 0 0
Carmen Luz Sanchez Guzman 5781266-4 Indirect Raw Material Purchased 37,268 0 38,588 0
- Expenses reimbursement 1,397 0 0 0
Inmob. Y Constructora 78936090-1 Affiliate Loan granted 247,128 0 0 0
Monte Azul S.A.
Empresa Editora S.A. 90684000-6 Indirect Services Purchased 2,066 -1,852 0 0
07. Inventory
An itemized list of inventory, valued according to note 2 h), is presented on
an attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 7 - INVENTORY (Consolidated)
2004 2003
Th Ch$ Th Ch$
---------- -----------
Finished Products
* Cristalerias de Chile S.A. 3,785,034 3,373,595
* S.A. Vina Santa Rita 10,224,256 9,864,726
Subtotal Finished Products 14,009,290 13,238,321
Raw Materials and Fuel
* Cristalerias de Chile S.A. 1,195,803 2,031,456
* S.A. Vina Santa Rita 27,645,841 23,396,665
Subtotal Raw Materials and Fuel 28,841,644 25,428,121
Supply Materials and Parts
* Cristalerias de Chile S.A. 899,181 1,054,862
* S.A. Vina Santa Rita 1,133,231 1,251,235
Subtotal Supply Materials and Parts 2,032,412 2,306,097
Materials in Transit 1,098,711 146,142
Red Televisiva Megavision S.A. (CIECSA S.A.)
* Foreign, taped, for broadcast 813,230 3,095,915
* Domestic programming, to be broadcast 423,301 827,211
Subtotal Red Televisiva Megavision S.A. 1,236,531 3,923,126
Total 47,218,588 45,041,807
08. Deferred taxes and income taxes
A) DEFERRED TAXES.
Accumulated balances of deferred taxes for temporary differences, and their
composition in the income tax account for effects of fiscal year results and
recognition of deferred taxes, are presented on the attached charts.
Amortization periods of deferred taxes have been estimated on average at 1
year for Short-Term Assets, 4 years for Long-Term Assets, and 14 years for
Long-term Liabilities.
B) INCOME TAX
The Company and its subsidiary S.A. Vina Santa Rita, made tax provisions of
17% of taxable income subject to the First Category in 2004 and 16.5% for year
2003, in addition to 35% for the Single Income Tax under Art. 21,
corresponding to 2004 and 2003 fiscal years.
The other consolidated subsidiaries maintain negative taxable income,
therefore have not provisioned for this concept.
Credits against taxes are shown deducting the payable obligation.
The detail is the following:
2004 2003
Th Ch$ Th Ch$
----------- ----------
Fiscal year income tax reserve (2,713,307) (910,536)
Single tax reserve (7,024) (4,880)
----------- ----------
SUB TOTAL (2,720,331) (915,416)
Credits:
Monthly reserve payments 1,431,423 2,104,392
Training expenditures 52,589 39,352
Fixed Assets credit 28,286 32,196
Donations 1,128 4,332
----------- ----------
CREDIT SUB TOTAL 1,513,426 2,180,272
Total Income Tax (1,206,905) 1,264,856
Income Tax to be Recovered 0 0
Other Taxes to be recovered:
VAT Fiscal Credit 594,268 550,651
Income tax credit, previous year 2,093,170 233,536
TOTAL TAXES TO BE ----------- ----------
RECOVERED 1,480,533 2,049,043
C) TAXABLE INCOME FUND
The Company registered the following income balances to be distributed:
2004 Th Ch$ 2003 Th Ch$
----------- -----------
Generated as of 12.31.1983: 1,930,833 1,930,833
Generated since 01.01.1984:
Without Credit 1,943,098 1,080,718
With 10% First Category Credit 22,785 22,875
With 15% First category Credit 84,552,274 87,651,560
With 15% Additional rate Credit 722 728
With 16% First Category Credit 14,535,934 16,256,265
With 16.5% First Category Credit 6,972,963 3,571,625
With 17% First Category Credit 10,955,060 0
----------- -----------
SUB-TOTAL TAX INCOME 118,982,836 108,583,771
Non-income revenues 6,852,415 6,879,852
----------- ----------
TOTAL INCOME TO BE DISTRIBUTED 125,835,251 115,463,623
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
DEFERRED TAXES
06-30-2004
----------------------------------------------------------
Item Asset Deferred Tax Liability Deferred Tax
-------------------------- --------------------------
Short term Long Term Short Term Long Term
-------------------------------------------- ---------- --------- ---------- ---------
Temporary Differences
Reserve non-collectable accounts 120,052 0 0 0
Prepaid Income 594,765 0 0 0
Vacation provision 165,972 0 0 0
Intangible Amortization 0 0 0 0
Leased assets 0 0 0 0
Manufacturing expenses 0 0 0 0
Depreciations fixed assets 0 0 0 8,725,309
Severance payments 2,088 155,299 0 0
Other events 104,236 20,991 0 74,722
Packaging reserve 215,059 0 0 0
Furnace repair provision 339,507 358,000 0 0
Stock obsolescence provision 82,354 0 0 0
Spare parts obsolescence provision 103,850 0 0 0
Lower value sale of bonds 97,863 0 0 0
Non realized profits 38,988 10,836 0 0
Other provisions 125,445 0 0 0
Direct labor 85,619 0 0 0
Accumulated depreciation automobiles 0 19,288 0 0
Tax losses 0 4,070,873 0 0
Goodwill bond placement 0 0 53,803 743,007
Prepaid expenses 0 0 50,645 0
Banking reserve 11,337 0 0 32,761
Fixed assets, molds 0 0 0 229,338
Commercial brands 1,560 0 0 0
Amortization commercial brands 0 0 0 0
Expenses assetted 0 0 238,918 0
Deferred customs duties 0 0 0 0
Refractory Obsolence provision 0 0 0 0
Other Expenses provision 0 0 0 0
Complementary accounts-net of amort. 4,215 2,996,439 0 3,514,262
Valuation provision 0 0
Total 2,084,400 1,638,848 343,366 6,290,875
06-30-2003
-----------------------------------------------------------
Item Asset Deferred Tax Liability Deferred Tax
--------------------------- ---------------------------
Short Term Long Term Short Term Long Term
-------------------------------------------- ---------- --------- ---------- ---------
Temporary Differences
Reserve non-collectable accounts 119,668 0 0 0
Prepaid Income 678,804 0 0 0
Vacation provision 143,682 0 0 0
Intangible Amortization 0 0 0 0
Leased assets 0 0 0 0
Manufacturing expenses 0 0 0 0
Depreciations fixed assets 0 0 0 8,394,482
Severance payments 1,973 37,924 0 0
Other events 0 0 0 0
Packaging reserve 189,513 0 0 0
Furnace repair provision 0 568,415 0 0
Stock obsolescence provision 61,997 0 0 0
Spare parts obsolescence provision 97,887 0 0 0
Lower value sale of bonds 0 0 0 0
Non realized profits 84,333 2,840 0 0
Other provisions 75,533 110,194 0
Direct labor 21,631 0 0 0
Accumulated depreciation automobiles 0 15,888 0 0
Tax losses 0 4,324,563 0 0
Goodwill bond placement 74,901 0 54,019 799,844
Prepaid expenses 0 0 40,250 0
Banking reserve 0 0 0 44,588
Fixed assets, molds 0 0 0 270,444
Commercial brands 0 0 0 0
Amortization commercial brands 35,562 0 0 0
Expenses assetted 0 0 343,167 0
Deferred customs duties 2,708 485 0 82,406
Refractory Obsolence provision 0 0 0 0
Other Expenses provision 0 0 0 0
Complementary accounts-net of amort. 170,633 3,635,942 0 3,657,401
Valuation provision 0 0
Total 1,417,559 1,424,367 437,436 5,934,363
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
INCOME TAX
06/30/2004 06/30/2003
----------- -----------
Th Ch$ Th Ch$
----------- -----------
Current tax expense (tax provision) -2,720,331 -915,163
Adjustment tax expense (previous year) 0 0
Effects from assets or liabilities, deferred year's tax -21,828 -438,378
Tax benefit from tax losses 0 0
Effect of amortiz. of supplementary accounts for deferred assets and liabilities 71,448 -83,789
Effect on assets or liabilities from deferred tax from changes in assessment provision 0 0
Other charges or credits to the account 687 139
Total -2,670,024 -1,437,191
09. Short and Long-term Leasing Contracts and Assets for Leasing
(Note required only for leasing companies defined in
Circular No.939 of 1990)
As of June 30, 2004 and 2003, no balances are included under this item.
10. Other current assets
As of June 30, 2004, this item includes investments in:
a) Financial instruments with resale agreements for Th Ch$ 10,942,806
valued according to note 2 q).
b) Deferred expenses for bond placement of Th Ch$ 360,469
c) Th Ch$ 7,691 for bank reserve.
d) Th Ch$ 848 for other assets.
As of June 30, 2003, there were investments in:
a) Financial instruments with resale agreements for Th Ch$ 10,300,334
valued according to note 2 q)
b) Deferred expenses for bonds placement for Th Ch$ 366,554
c) Th Ch$ 28,681 for bank reserve
11. Information on operations of purchase agreements, sales agreements,
sale with repurchase agreement, and purchase with resale
agreement of titles or bearer securities
Information about these transactions is presented in attached charts.
NOTE 11 - INFORMATION ON PURCHASE COMMITMENT, SALE COMMITMENT, SALE WITH
REPURCHASE AGREEMENTS AND PURCHASE WITH RESALE AGREEMENTS OPERATIONS OF
TITLES AND BEARER SECURITIES
SALE WITH REPURCHASE OPERATIONS (VRC) AND PURCHASE WITH SALE (CRV) COMMITMENT
OPERATIONS
Dates
---------------------- Original Price Final Market
Code Start End Counterpart Currency Set Rate Value Instrument Value
---- ---------- ---------- ---------------------------- -------- -------- ---- --------- ---------- ---------
CRV 06.25.2004 07.01.2004 BCI CB Pesos 1,000,000 0.15 1,000,300 BCP-PDBC 1,000,250
CRV 06.25.2004 07.02.2004 BCI CB Pesos 1,650,000 0.15 1,650,578 BCP-PDBC 1,650,413
CRV 06.29.2004 07.05.2004 BCI CB Pesos 450,000 0.15 450,135 BCP-PDBC 450,023
CRV 06.30.2004 07.05.2004 Santander Investment Pesos 760,000 0.16 760,203 BCD-CERO 760,000
CRV 06.30.2004 07.06.2004 Santander Investment Pesos 1,500,000 0.16 1,500,480 BCD-ZERO-PRD 1,500,000
CRV 06.30.2004 07.07.2004 Santander Investment Pesos 1,490,000 0.16 1,490,556 BCO-ZERO-PRC 1,490,000
CRV 06.30.2004 07.07.2004 Santander Agente de Valores Dollars 261,775 1.50 261,851 BCD-BCP-CHI 261,775
CRV 06.30.2004 07.01.2004 BCI CB Pesos 250,000 0.16 250,013 PRD 250,000
CRV 06.30.2004 07.01.2004 BCI CB Pesos 500,000 0.16 500,027 PRD 500,000
CRV 06.30.2004 07.02.2004 Inversiones Boston Corredores Pesos 162,702 0.18 163,722 PRD 163,702
CRV 06.30.2004 07.02.2004 Inversiones Boston Corredores Pesos 113,112 0.18 113,126 PRD 113,112
CRV 06.30.2004 07.02.2004 Inversiones Boston Corredores Pesos 23,186 0.18 23,188 PRD 23,186
CRV 06.30.2004 07.01.2004 BCI CB Pesos 249,000 0.16 249,013 PRD 249,000
CRV 06.30.2004 07.01.2004 BCI CB Pesos 144,000 0.16 144,008 PRD 144,000
CRV 06.29.2004 07.23.2004 Banco Chile Pesos 280,000 0.15 280,336 PRBC 280,028
CRV 06.29.2004 07.23.2004 Banco Chile Pesos 280,000 0.15 280,336 PRBC 280,028
CRV 06.03.2004 07.15.2004 Banco Chile Pesos 315,000 0.15 315,236 PRBC 315,015
CRV 06.03.2004 07.15.2004 BCI Pesos 315,000 0.14 315,221 PRBC 315,015
CRV 06.29.2004 07.19.2004 Banco Santander Pesos 100,000 0.15 100,100 PRBC 100,010
CRV 06.30.2004 07.08.2004 Banco Santander Pesos 315,000 0.14 315,118 PRBC 315,015
CRV 06.30.2004 07.26.2004 Banco Santander Pesos 280,000 0.15 280,364 PRBC 280,014
CRV 02.27.2004 07.19.2004 Banco Santander Pesos 200,000 0.18 201,716 PRBC 201,500
CRV 06.03.2004 07.05.2004 Banco Santander Pesos 300,000 0.15 300,480 PRBC 300,420
12. Fixed Assets
Cristalerias de Chile S.A.:
The Fixed Assets are valued according to note 2 j), and the main goods
included within this item as of June 30, 2004 and 2003 are detailed in the
annexed chart.
The items that make up the Company's fixed assets as of June 30, 2004 and 2003
include mainly Land, Industrial Constructions, Infrastructure Works,
Machinery, and Equipment distributed between the Padre Hurtado and other
minor.
S.A.Vina Santa Rita
The increase in lands corresponds to the operation of exchange conducted
between Vina Santa Rita S.A. and Empresa de Transportes y Excavaciones
Limitada, (TRANSEX LTDA.)
TRANSEX LTDA. granted Vina Santa Rita two pieces of land that totalize
27,242.67 m2, and Vina Santa Rita S.A., in turn, granted TRANSEX LTDA. a piece
of land of 30,983.35 m2, both located in Buin. The parts agreed the exchange
price of Ch$ 269,000 (Two hundred and sixty nine million pesos).
Technical Reappraisal and Adjustment of Accounting Values:
The Company carried out a technical reappraisal of its fixed assets in 1979.
On June 1986 it adjusted those assets. Both operations were carried out
according to the provisions established in Circular Letters No. 1529 and No.
550 respectively of the Securities and Insurance Commission.
The effects of these operations, including write-offs of property, are shown
on the attached chart.
Depreciations:
The charge against results for this item amounts Th Ch$ 7,743,099 in 2004 and
Th Ch$ 7,057,014 in 2003.
The detail is shown on an attached chart.
CRISTALERIAS DE CHILE S.A. AND SUBSIDIARIES
NOTE 12 - FIXED ASSETS
2004 2003
ThCh$ Th Ch$
------------ ------------
Land
Land and Mining Properties 13,442,643 13,175,721
Subtotal Lands 13,442,643 13,175,721
Buildings and Infrastructure Projects
Hi rises and industrial buildings 31,431,451 30,446,106
Installations 32,863,607 30,897,019
Residences 26,423 26,396
Subtotal 64,321,481 61,369,521
Depreciations
Accumulated (21,914,857) (18,943,856)
Fiscal year (1,531,160) (1,484,511)
Subtotal Depreciations (23,446,017) (20,428,367)
Subtotal Constructions and Projects 40,875,464 40,941,154
Machinery and Equipment
Machinery 97,261,628 92,830,513
Furnaces 46,747,917 46,597,914
Furniture and Furnishings 2,691,788 2,489,424
Tools 723,600 631,308
Rolling Stock 923,694 823,703
Subtotal 148,348,627 143,372,862
Depreciations
Accumulated (74,159,239) (63,440,551)
Fiscal year (6,106,813) (5,467,480)
Subtotal Depreciations (80,266,052) (68,908,031)
Subtotal Machinery and Equipment 68,082,575 74,464,831
Other Fixed Assets
Spare parts 5,917,908 5,373,156
Imports in transit 891,470 87,308
Work in progress 2,226,701 2,130,332
Lots in Pirque and Leyda 413,529 466,610
Deferred Customs Duties 98,012 340,223
Packages and Bundling 237,598 237,361
Other 1,944,486 1,952,826
Subtotal Other Fixed Assets 11,729,704 10,587,816
Total Fixed Assets 237,842,455 228,505,920
Total Accumulated Depreciation (96,074,096) (82,384,407)
Total Depreciation of the Period (7,637,973) (6,951,991)
Total Net Fixed Assets 134,130,386 139,169,522
TECHNICAL REVALUATION AND ADJUSTMENT TO ACCOUNTING VALUES
2004 2003
ThCh$ Th Ch$
------------ ------------
Land
Land 315,506 321,069
Subtotal net land and mining properties 315,506 321,069
Buildings and Infrastructure Projects
High rises and industrial buildings 6,302,652 6,290,431
Installations 41,665 41,614
Subtotal Buildings 6,344,317 6,332,045
Accumulated Depreciation (5,101,125) (4,886,002)
Fiscal year depreciation (105,126) (105,022)
Subtotal depreciation (5,206,251) (4,991,024)
Subtotal Net Buildings 1,138,066 1,341,021
Machinery and Equipment
Machinery and Equipment 0 1,114,736
Depreciations 0 (1,114,736)
Subtotal Machinery and Equipment 0 0
Subtotal Net Technical Revaluation 1,453,572 1,662,090
TOTAL REVALUED ASSETS 6,659,823 7,767,850
TOTAL ACCUMULATED DEPRECIATION (5,101,125) (6,000,738)
TOTAL DEPRECIATION OF THE PERIOD (105,126) (105,022)
TOTAL NET 1,453,572 1,662,090
13. Sales transactions with leaseback
These type of transactions were not carried out as of June 30, 2004 and 2003.
14. Investments in related companies
According to Circular N. 1697 of the SVS, valuations of investments in related
companies effected prior to January 2004 have been done using the Equity
Method (VPP).
On the other hand, for investments in which participation is lower than 20%,
the Equity Method (VPP) has been used, since they correspond to companies
within the same business conglomerate and therefore significant influence over
those companies exists.
This method consists in assigning the investment an equivalent value to the
proportion that corresponds to the company in book value net worth of the
issuer, and acknowledge proportionally the variations that this value
experiments.
Investments in force as of June 30, 2004 and 2003 are detailed as follows:
METROPOLIS INTERCOM S.A.
On April 30, 2003 the shareholders of Metropolis -Intercom S.A. agreed to
increase the capital of the company by issuing 3,923,834 shares at a price of
Ch$ 1,256.67 each, which represented Th CH$ 4,931,000. This increase was
subscribed 50% by Cristalchile Comunicaciones S.A., and the other 50% by
Liberty Comunicaciones de Chile Uno Ltda.
The payment of this subscription was made by de subsidiary Cristalchile
Comunicaciones S.A. on September 29, 2003, paying 1,961,917 shares for a value
of Th CH$ 2,462,794.
With this purchase the subsidiary participates directly in a 2.205% and
indirectly in 47.795% in the net worth of Metropolis-Intercom S.A.
CIECSA S.A.
On August 26, 2003 the shareholders of this subsidiary agreed to increase
capital of the company by issuing 36,400,000 shares, equivalent to Th Ch$
910,000, which were subscribed and paid in their totality by Cristalerias de
Chile S.A.
Such capital increase allowed CIECSA S.A. to complete financing to pay the
balance of Th US$ 2,100 owed to Televisa S.A., from the purchase of 7,885,472
shares of Megavision S.A., made in August, 2002.
MEGAVISION S.A.
On August 27, 2002, the subsidiary CIECSA purchased from Televisa S.A.
7,885,472 shares of Megavision, corresponding to the totality of the
participation that Televisa S.A. held in that company.
The price of the transaction of shares of Televisa S.A. in Megavision was of
US$4,200,000, equivalent to US$ 0.532625 per share. The parties agreed that
the price would be paid with US$ 2,100,000 in cash, which was paid in 27
August, 2002 and the balance to be paid in August 27, 2003.
On the other hand CIECSA S.A. sold to the related company Servicios y
Consultorias Hendaya S.A. 3,600 shares of Megavision S.A. at the cost of US$
0.532625 per share.
As a result of these transactions, participation of CIECSA in the equity of
Megavision reached 99.99%
EDICIONES CHILOE S.A.
On an extraordinary meeting held on September 27, 2003, the shareholders of
Ediciones Chiloe agreed to increase its capital by Th Ch$ 684,308, issuing
1,500,395 shares, which were subscribed both by CIECSA S.A. and Recoletos
Chile Ltda.
From the latter are 135,030 subscribed shares outstanding payment, for which
the final date expires on September 2004.
INMOBILIARIA MONTE AZUL S.A.
On May 14, 2004, Cristalchile S.A. paid its subsidiary Constructora Apoger the
sum of Th Ch$ 196 corresponding to 49% of the rights of the company; with
this contribution the participation in the affiliate reached to 50% as of June
30, 2004 (no effect on results).
INVESTMENTS ABROAD
------------------
RAYEN CURA S.A.I.C.
On January 31, April 25 and June 30, 2003, Rayen Cura S.A.I.C. carried out
repayment of part of a capital increase paid on April 29, 2002. Reimbursed
amounts totaled Th US$ 2,600.
On June 30, 2004 the Board of Rayen Cura approved the reimbursement of part of
the irrevocable contributions subscribed and paid on April 29, 2002. The
amount of that reimbursement was US$ 1,500,000, of which US$ 600,000 will be
received by Cristalchile Inversiones S.A., equivalent to 40% of its
contribution (provisioned and paid on July 1, 2004).
As of June 30, 2004 the financial statements of Rayen Cura S.A.I.C. recognize
an exchange rate of $ 2.94 Argentine pesos per US Dollar. CristalChile
Inversiones S.A., in turn, has adjusted the financial statemens of Rayen Cura
S.A.I.C. in order to recognize the variation from $2.91 (exchange rate at
December 31, 2003) and $2.94 (exchange rate at June 30, 2004) Argentine pesos
per US dollar.
For the effect of results of this affiliate and the conversion of financial
statements of Rayen Cura S.A.I.C., according to the chilean normative,
CristalChile Inversiones S.A., has recognized a Th Ch$ 548,441 income during
the first half of 2004 and a Th Ch$ 742,704 income as of June 30, 2003.
On the other hand, the variation of the dollar exchange rate in Chile during
the first half of 2004, originated in the investment in Rayen Cura S.A.I.C.
and for the negative goodwill
produced by the purchase of shares of that company, a Th Ch$ 1,026,122 credit.
In 2004 (Th Ch$ 723,786 charge in 2003), to Other Equity Reserves account.
As stipulated in Technical Bulletin No. 64 of the Accountants Association of
Chile A.G., the following information related to investments abroad is
presented:
2004 2003
Th$ Th$
---------- -----------
CristalChile Inversiones's stake in
Rayen Cura S.A.I.C. 12,955,478 13,724,552
Negative goodwill (net of amortization) 4,373,151 5,150,694
---------- -----------
TOTAL 17,328,629 18,875,246
========== ===========
Devaluation loss (2,319,270) (1,754,398)
Accrued Income (loss) 548,441 742,704
Potentially remesable income 0 0
The investment in Rayen Cura S.A.I.C. is controlled in Dollars of the United
States of America.
The subsidiary Cristalchile Inversiones S.A., does not register liabilities
that have been specifically designated and accounted as coverage instruments
of the investment abroad.
CRISTALERIAS DE CHILE S.A.
NOTE 14- INVESTMENTS IN RELATED COMPANIES
BREAKDOWN OF INVESTMENTS
Shareholder Company
Investment (Percentage) Equity
-------------------------------- ---------------------- ------------------------
Country
of Control Number of
R.U.T. COMPANY Origin Currency Shares 06-30-2004 06-30-2003 06-30-2004 06-30-2003
------------ ------------------- --------- -------- ------------ ----------- ---------- ----------- -----------
78.619.410-5 Cordillera Chile Peso 0 50.00000 50.00000 125,572,632 139,822,130
Comunicaciones
Holding
78.619.370-2 Cordillera Chile Peso 0 0.00000 0.00000 126,203,650 140,524,754
Comunicaciones Ltda.
89.150.900-6 Vina Los Vascos S.A. Chile Peso 60,000,000 43.00000 43.00000 14,220,467 12,890,919
90.684.000-6 Editorial Zig-Zag Chile Peso 114,596,213 49.00000 49.00000 751,732 559,632
S.A.
96.793.770-3 Ediciones Chiloe Chile Peso 1,570,146 50.00000 50.00000 1,342,768 1,455,745
S.A.
96.826.870-8 Inmobiliaria Don Chile Peso 3,817 0.00000 38.00000 0 37
Alberto S.A.
86.881.400-4 Envases CMF S.A. Chile Peso 28,000 50.00000 50.00000 32,276,385 33,753,421
96806690-0 Proser S.A. Chile Peso 50 0.00000 0.00000 -12,200 -12,273
96787750-6 Metropolis Intercom Chile Peso 1,961,918 2.00000 0.00000 70,969,345 76,664,874
S.A.
78936090-1 Inmob. Y Chile Peso 50 50.00000 0.00000 -1,052 0
Constructora Monte
Azul S.A.
0-E Rayen Cura S.A.I.C Argentina Dollar 1,376,000 40.00000 40.00000 32,388,695 34,311,379
Net Result of
Income Accrual VPP
------------------------ ----------------------- ------------------------
R.U.T. COMPANY 06-30-2004 06-30-2003 06-30-2004 06-30-2003 06-30-2004 06-30-2003
------------ ------------------- ------------ ---------- ---------- ---------- ---------- ----------
78.619.410-5 Cordillera -7,740,034 -6,898,348 -3,870,016 -3,449,175 62,786,316 69,911,067
Comunicaciones
Holding
78.619.370-2 Cordillera -7,778,929 -6,933,013 -19,447 -17,332 315,509 351,312
Comunicaciones Ltda.
89.150.900-6 Vina Los Vascos S.A. 631,177 928,960 271,406 399,452 6,114,801 5,543,096
90.684.000-6 Editorial Zig-Zag -80,434 -222,992 -42,208 -111,268 375,220 279,239
S.A.
96.793.770-3 Ediciones Chiloe -142,724 -184,682 -71,362 -92,340 671,384 727,873
S.A.
96.826.870-8 Inmobiliaria Don 0 2 0 1 0 14
Alberto S.A.
86.881.400-4 Envases CMF S.A. 298,319 1,216,701 149,159 608,349 16,138,193 16,876,710
96806690-0 Proser S.A. 98 135 0 0 -61 -61
96787750-6 Metropolis Intercom -5,961,766 -4,843,208 -131,436 0 1,564,973 0
S.A.
78936090-1 Inmob. Y -1,654 0 -827 0 -526 0
Constructora Monte
Azul S.A.
0-E Rayen Cura S.A.I.C 1,371,101 1,856,761 548,441 742,704 12,955,478 13,724,552
TOTAL 100,921,287 107,413,802
Not Investment
Realized Result Book value
---------------------- -------------------------
R.U.T. COMPANY 06-30-2004 06-30-2003 06-30-2004 06-30-2003
------------ ------------------- ---------- ---------- ---------- ----------
78.619.410-5 Cordillera 0 0 62,786,316 69,911,067
Comunicaciones
Holding
78.619.370-2 Cordillera 0 0 315,509 351,312
Comunicaciones Ltda.
89.150.900-6 Vina Los Vascos S.A. 0 0 6,114,801 5,543,096
90.684.000-6 Editorial Zig-Zag 0 0 375,220 279,239
S.A.
96.793.770-3 Ediciones Chiloe 157,314 197,757 514,070 530,116
S.A.
96.826.870-8 Inmobiliaria Don 0 0 0 14
Alberto S.A.
86.881.400-4 Envases CMF S.A. 0 0 16,138,193 6,876,710
96806690-0 Proser S.A. 0 0 -61 -61
96787750-6 Metropolis Intercom 0 0 1,564,973 0
S.A.
78936090-1 Inmob. Y 0 0 -526 0
Constructora Monte
Azul S.A.
0-E Rayen Cura S.A.I.C 0 0 12,955,478 13,724,552
TOTAL 157,314 197,757 100,763,973 107,216,045
15. Investments in other companies
Investments in other companies that totaled Th Ch$ 788,803 as of June 30, 2004
(Th Ch$ 831,373 in 2003) are shown on attached charts.
CRISTALERIAS DE CHILE S.A.
NOTE 15 - INVESTMENTS IN OTHER COMPANIES
Number of Shareholding Book Value
R.U.T. Company Name Shares (Percentage) 06-30-2004 06-30-2003
------------ -------------------- ---------- ------------ ---------- ----------
96.895.100-9 Internet Holding S.A. 57,104 7.4200 180,457 223,634
0-E Bazuca.com Inc. 266,500 7.8900 608,346 607,739
16. Goodwill Amortization
NEGATIVE GOODWILL
Stock purchases made in different periods of S.A. Vina Santa Rita, Vina Los
Vascos S.A., Ciecsa S.A., Ediciones Financieras S.A., and Rayen Cura S.A.I.C.
have produced negative goodwill whose net balance to be amortized as of June
30, 2004 reached Th Ch 8,995,298 (Th Ch$ 9,364,453 in 2003).
POSITIVE GOODWILL
As of June 30, 2004 and 2003 the Company and subsidiaries do not show any
balance for this item.
More detail is shown in the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 16 - GOODWILL ON INVESTMENTS
NEGATIVE GOODWILL 06-30-2004 06-30-2003
----------------- ----------------------------- --------------------------------
R.U.T. Company Name
------ --------------
Amount Amortiz. Goodwill Amount Amortiz. Goodwill
this period Balance this period Balance
----------- ------- ----------- -------
99.999.999-9 Rayen Cura S.A. 143,382 4,373,151 158,483 5,150,694
86.547.900-K S.A. Vina Santa Rita 25,288 538,221 25,264 588,212
96.608.270-4 Ciecsa S.A. 61,103 1,283,153 61,042 1,403,959
89.150.900-6 Vina Los Vascos S.A. 44,792 1,133,275 44,785 1,200,009
90.684.000-6 Empresa Editoria Zig-Zag S.A. 3,201 100,020 3,198 106,316
79.952.350-7 Red Televisiva Megavision S.A. 26,844 862,487 26,817 915,263
96787750-6 Metropolis Intercom S.A. 18,311 704,991 0 0
TOTAL 322,921 8,995,298 319,589 9,364,453
17. Intangibles
The following values are included in this item:
Th Ch$ Th Ch$
2004 2003
---- ----
Concession of Channel 9
frequency and regional network 10,261,701 10,251,480
Trademarks 1,651,835 1,622,598
TOTAL INTANGIBLES 11,913,536 11,874,078
========== ==========
ACCUMULATED AMORTIZATIONS
From Channel 9 Frequency (1,057,456) (900,130)
From Trademarks (268,512) (209,189)
TOTAL AMORTIZATIONS (1,325,968) (1,109,319)
========= ==========
18. Other (Assets)
As of June 30, 2004 and 2003 its composition is the following:
2004 2003
Th Ch$ Th Ch$
--------- ---------
Celulosa Arauco bonds (*) 8,539,146 9,375,162
Price differential bond acquisition(*) 22,801 199,477
Negative goodwill Bond Placement (Net) 2,971,837 3,316,538
Expenses of bond placement 971,261 1,141,134
Bank Reserve 0 9,627
Foreign programs to be exhibited over
a year from the present 649,332 791,556
Long-Term Tax VAT Vina Dona Paula (**) 535,423 395,738
Presumed Minimum Income Tax 45,885 40,928
Other 27,831 62,409
---------- ----------
Total 13,763,516 15,332,569
========== ==========
(*) Investment in Celulosa Arauco bonds equivalent to US$13,420,000 at an
annual rate of 6.95% and maturity on September 15, 2005. Th Ch$ 22,801
correspond to price differential paid in the acquisition of Celulosa Arauco
bonds which will be amortized in the same term of the bonds due date.
Considering that there is the intention of maintaining the Celulosa Arauco and
Constitucion S.A. bonds until their maturity 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.
(**) Corresponds to long term taxes to recover of Vina Dona Paula S.A.,
Mendoza, Argentina.
19. Short-term obligations with banks and financial institutions
A detailed list of operations is shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 19- OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS, SHORT TERM
Type of Currency and Readjustment Index
-----------------------------------------------------------------------------
Bank or Financial Other Foreign
R.U.T. Institution Dollars Euros Yen Currencies
------------ ---------------------------- ----------------------- ---------------- -------------- ---------------
06-30-2004 06-30-2003 06-30- 06-30- 6-30- 06-30- 06-30- 06-30-
2004 2003 2004 2003 2004 2003
Short term (code: 5.21.10.10)
0-E Banco Regional de Cuyo 0 0 0 0 0 0 6,968 19,951
Other 0 0 0 0 0 0 0 0
TOTAL 0 0 0 0 0 0 6,968 19,951
Amount capital due 0 0 0 0 0 0 6,824 19,747
Annual average interest rate 0.00 0.00 0.00 0.00 0.00 0.00 2.48 2.37
Long Term - Short Term (code: 5.21.10.20)
97.008.000-7 Citibank NA 987,097 1,947,699 0 0 0 0 0 0
97.030.000-5 Banco Estado 0 0 0 0 0 0 0 0
97.018.000-1 Scotiabank Sudamericano 0 0 0 0 0 0 411,414 424,107
97.006.000-6 Banco Credito e Inversiones 0 0 0 0 0 0 170,317 172,389
97.004.000-4 Banco de Chile 0 0 0 0 0 0 123,590 298,827
97.036.000-K Banco Santander Chile 0 0 0 0 0 0 502,917 512,917
0-E JP Morgan Chase Bank 139,500 156,829 0 0 0 0 0 0
0-E Banco Argentaria 233,517 258,989 0 0 0 0 0 0
Other 0 0 0 0 0 0 0 0
TOTAL 1,360,114 2,363,517 0 0 0 0 1,208,238 1,408,240
1,161,784 1,332,520
Amount capital due 1,214,986 1,222,276 0 0 0 0 0 0
Average annual interest rate 1.91 1.85 0.00 0.00 0.00 0.00 2.88 5.39
Percentage oblig. foreign curr. (%) 48.0000
Percentage oblig. localcurr. (%) 52.0000
Type of Currency and
Readjustment Index
--------------------------
U.F. Non adjustable $ Total
Bank or Financial ------------------------ ----------------------- ------------------------
R.U.T. Institution 06-30-2004 06-30-2003 06-30-2004 06-30-2003 06-30-2003 06-30-2003
------------ ---------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Short term (code: 5.21.10.10)
0-E Banco Regional de Cuyo 0 0 0 0 6,968 19,951
Other 0 0 0 0 0 0
TOTAL 0 0 0 0 6,968 19,951
Amount capital due 0 0 0 0 6,824 19,747
Annual average interest rate 0.00 0.00 0.00 0.00 0 0
Long Term - Short Term (code: 5.21.10.20)
97.008.000-7 Citibank NA 0 0 0 0 987,097 1,947,699
97.030.000-5 Banco Estado 0 0 265,573 267,166 265,573 267,166
97.018.000-1 Scotiabank Sudamericano 0 0 0 0 411,414 424,107
97.006.000-6 Banco Credito e Inversiones 0 0 0 0 170,317 172,389
97.004.000-4 Banco de Chile 0 0 0 0 123,590 298,827
97.036.000-K Banco Santander Chile 0 0 0 0 502,917 512,917
0-E JP Morgan Chase Bank 0 0 0 0 139,500 156,829
0-E Banco Argentaria 0 0 0 0 233,517 258,989
Other 0 0 0 0 0 0
TOTAL 0 0 265,573 267,166 2,833,925 4,038,923
0 0 264,375 265,961 2,641,145 2,820,757
Amount capital due 0
Average annual interest rate 0.00 0.00 4.94 4.94 0.00 0.00
20. Other Current Liabilities
As of June 30, 2004 and 2003 there is a balance of Th Ch$ 1,920,957 and Th Ch$
5,945,646 respectively under "Other Current Assets", corresponding to
differences in favor of financial institutions for foreign currency future
contracts subscribed by the Parent Company and the subsidiaries S.A. Vina
Santa Rita and Ciecsa S.A. (see note No. 34).
21. Long-term obligations with banks and financial institutions
The obligations with banks and financial institutions are presented on the
charts attached.
CRISTALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Institution Years of Maturity
--------------------------- ----------------------------------------------------------------------
Bank or Currency More than 1 More than 2 More than 3 More than 5
Financial adjustment up to 2 up to 3 up to 5 up to 10
R.U.T. Institution index Thou Ch$ Thou Ch$ Thou Ch$ Thou Ch$
------------ --------------------------- ----------- ---------- -------- -------- --------
0-E Banco Regional de Cuyo Other 18,244 29,843 10,506 0
currency
97.030.000-7 Banco Estado Non-adjustment 266,172 132,188 0 0
97.036.000-K Banco Santander Santiago UF 460,538 460,538 230,269 0
97.018.000-1 Banco Scotiabank UF 408,324 408,324 408,324 0
0-E J.P. Morgan Chase Bank Dollars 7,953,750 15,907,500 7,953,750 0
90.008.000-K Citibank N.A. Dollars 0 0 0 0
97.006.000-6 Banco Credito e Inversiones UF 127,612 0 0 0
97.004.000-5 Banco de Chile UF 122,773 122,773 245,546 0
0-E Banco Argentaria Dollars 0 0 0 0
Total 9,357,413 17,061,166 8,848,395 0
Percentage of obligations in foreign currency 90.0000%
Percentage of obligations in local currency 10.0000%
Institution Closing date Closing date
Years of Maturity Current period Previous period
------------------ -------------------------------- ----------------
-------------------------- More than 10 years Total Long- Annual Total Long-
Bank or ------------------ Term at closing average Term at closing
Financial Amount Period of Financial interest of Financial
R.U.T. Institution Thou Ch$ Statements rate Statements
------------ --------------------------- -------- ------- ------------- ------------ ----------
0-E Banco Regional de Cuyo 0 0 58,593 2.48 73,391
97.030.000-7 Banco Estado 0 0 398,360 4.94 667,917
97.036.000-K Banco Santander Santiago 0 0 1,151,345 TAB 180+1.05 1,616,286
97.018.000-1 Banco Scotiabank 0 0 1,224,972 TAB 180+1.1 1,637,756
0-E J.P. Morgan Chase Bank 0 0 31,815,000 2.05 35,165,736
90.008.000-K Citibank N.A. 0 0 0 0 1,089,312
97.006.000-6 Banco Credito e Inversiones 0 0 127,612 TAB 90+1.05 298,576
97.004.000-5 Banco de Chile 0 0 491,092 TAB 180+1.05 1,231,076
0-E Banco Argentaria 0 0 0 0 258,989
Total 0 35,266,974 42,039,039
22. Short-term and long-term obligations with
the public (promissory notes and bonds)
The balance for the short-term as of June 30 2004 was Th Ch$ 1,740,471 (Th Ch$
1,735,084 in 2003), corresponding to accrued interests for bonds issued by the
Parent Company and the subsidiary S.A. Vina Santa Rita.
As of June 30, 2004, there are long-term obligations with the public for Th
Ch$ 90,179,235 (Th Ch$ 90,425,569 in 2003), of which Th Ch$ 69,761,295 (Th Ch$
69,951,855 in 2003) correspond to bonds issued in UF's, by the Company, series
C1, C2, D1, D2 and Th Ch$ 20,417,940 (Th Ch$ 20,473,714 in 2003) correspond to
bonds series C and D issued by the subsidiary S.A. Vina Santa Rita.
This liability is shown in detail in the annex.
Cristalerias de Chile S.A.
NOTE 22: SHORT-TERM AND LONG-TERM OBLIGATIONS WITH PUBLIC (PROMISSORY NOTES
AND BONDS)
BONDS
------------------------------------------------------------------------------------------------------------------------------------
INSTALLMENTS
REGISTRATION OR CURRENT ---------------------- PAR VALUE ISSUE
IDENTIFICATION NO. DEPOSIT INDEXING INTEREST FINAL INTEREST AMORTIZATION -------------------- IN CHILE
OF INSTRUMENT SERIES FACE VALUE UNIT OF BOND RATE MATURITY PAYMENT PAYMENT 06-30-2004 06-30-2003 OR ABROAD
----------------- ------------- ---------- ------------ -------- ---------- ----------- ----------- ---------- ---------- ---------
LONG-TERM BONDS-CURRENT PORTION
296-09.07.02 C1 Interests 0 UF 4.75 07-15-2004 SEMI-ANNUAL SEMI-ANNUAL 555,855 554,036 LOCAL
296-09.07.02 C2 Interests 0 UF 4.75 07-15-2004 SEMI-ANNUAL SEMI-ANNUAL 185,285 184,678 LOCAL
296-09.07.02 D1 Interests 0 UF 5.80 07-15-2004 SEMI-ANNUAL SEMI-ANNUAL 857,555 854,748 LOCAL
296-09.07.02 D2 Interests 0 UF 5.80 07-15-2004 SEMI-ANNUAL SEMI-ANNUAL 90,269 89,974 LOCAL
241-15.12.00 C1 Interests 0 UF 6.29 12-15-2004 SEMI-ANNUAL SEMI-ANNUAL 8,585 8,608 LOCAL
241-15.12.00 D1 Interests 0 UF 6.29 12-15-2004 SEMI-ANNUAL SEMI-ANNUAL 4,292 4,304 LOCAL
241-15.12.00 D2 Interests 0 UF 6.29 12-15-2004 SEMI-ANNUAL SEMI-ANNUAL 38,630 38,736 LOCAL
TOTAL CURRENT PORTION 1,740,471 1,735,084
LONG-TERM BONDS
296-09.07.02 C1 1,500,000 UF 4.75 07-15-2008 SEMI-ANNUAL SEMI-ANNUAL 25,522,425 25,592,142 LOCAL
296-09.07.02 C2 500,000 UF 4.75 07-15-2008 SEMI-ANNUAL SEMI-ANNUAL 8,507,475 8,530,714 LOCAL
296-09.07.02 D1 1,900,000 UF 5.80 07-15-2023 SEMI-ANNUAL SEMI-ANNUAL 32,328,405 32,416,713 LOCAL
296-09.07.02 D2 200,000 UF 5.80 07-15-2023 SEMI-ANNUAL SEMI-ANNUAL 3,402,990 3,412,286 LOCAL
241-15.12.00 C1 200,000 UF 6.29 12-15-2005 SEMI-ANNUAL SEMI-ANNUAL 3,402,990 3,412,286 LOCAL
241-15.12.00 D1 100,000 UF 6.29 12-15-2021 SEMI-ANNUAL SEMI-ANNUAL 1,701,495 1,706,143 LOCAL
241-15.12.00 D2 900,000 UF 6.29 12-15-2021 SEMI-ANNUAL SEMI-ANNUAL 15,313,455 15,355,285 LOCAL
LONG-TERM TOTAL 90,179,235 90,425,569
23. Provisions and Write-Offs
Provisions:
As of June 30, 2004 the balance for short-term provisions amounted to Th Ch$
17,245,411, and Th Ch$ 12,045,713 in 2003.
Long-term provisions amounted to Th Ch$ 6,417,630 and Th Ch$ 7,578,301 in 2004
and 2003, respectively.
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$ 706,185 and Th Ch$ 708,162 as
of June 30, 2004 and 2003, respectively.
This provision is deducted from the balance of Debtors from Sales and
Documents Receivable.
Vacation Provision:
The Company and its subsidiaries have established provisions for the totality
of the cost of vacations pending as of June 30, 2004 and 2003, as established
in Technical Bulletin No. 47 of the Accountants Association of Chile A.G.
The net balance for this item is Th Ch$ 979,703 as of June 30, 2004 (Th Ch$
861,509 in 2003).
Provision for Furnace Reconstruction:
This reserve is established throughout the useful life of the refractants of
each smelting furnace so their repair will not distort the result of the
fiscal year when the repairs are made.
The Company has established a reserve in the amount of Th Ch$ 4,194,934 and Th
Ch$ 3,441,104 as of June 30, 2004 and 2003, respectively.
Detail is shown in the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 23: PROVISIONS AND WRITE-OFFS
06-30-2004 06-30-2003
Thou Ch$ Thou Ch$
---------- ----------
Short Term
Commissions and Fees 2,630,469 2,629,348
Furnace reconstruction 1,997,982 0
Share of Board of Directors 356,078 166,756
Legal holidays 979,703 861,509
Local and foreign suppliers 896,398 1,357,361
Packing return to clients 1,265,054 1,125,820
Spareparts reserve 438,189 449,065
Informative services 12,599 0
Advertising and marketing 1,026,940 320,093
Copyright 55,836 53,677
Severance payments 185,502 183,430
Advertising Agency Commmission 624,677 605,547
Reserve indirect cost 492,914 463,355
Severance Legal provision 77,432 67,575
Loss Reserve exported products 86,749 105,497
Grape harvest expenses 4,891,034 2,742,564
Other reserves 1,227,855 914,116
TOTAL 17,245,411 12,045,713
Long Term
Severance payment 4,220,678 4,137,197
Furnace reconstruction 2,196,952 3,441,104
TOTAL 6,417,630 7,578,301
24. Severance Payment
The Parent Company has effected a serverance provision which is included at
its current value, as expressed in note 2 t). As of June 30, 2004 the
provision amounts to Th Ch$ 4,406,180 (Th Ch$ 4,320,627 in 2003).
As of June 30, 2004, the Parent Company paid severance payments with charge to
the provision of Th Ch$ 135,042 (Th Ch$ 34,375 in 2003).
25. Other long-term liabilities
As of June 30, 2004 and 2003 there are no balances for this item.
26. Minority interest
The subsidiaries that generate minority interests as of June 30, 2004 and 2003
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 2004 2003 2004 2003 2004 2003
------------------------------------ ---------- ---------- ---------- ----------- ------ ------
S.A.Vina Santa Rita and subsidiaries 38,751,342 37,139,291 (1,631,768) (1,323,956) 45.90 45.90
CIECSA and subsidiaries 384,027 280,101 (68,169) (9,172) 1.55 1.64
Apoger S.A. 730 1,098 216 142 20.00 20.00
Cristalchile Comunicaciones S.A. 1,198 1,388 75 68 0.002 0.010
TOTAL 39,137,297 37,421,878 (1,699,646) (1,332,917)
27. Changes in Equity
a. Activity in 2004 and 2003
The activity of the capital and reserve accounts in the fiscal years ended on
June 30, 2004 and 2003, are shown in the attached charts.
b. Other Reserves
The detail of this item is as follows:
2004 2003
ThCh$ ThCh$
--------- ---------
Future capital increases 4,564,803 4,376,765
Reserve for adjustment to the
value of fixed assets 1,453,572 1,635,616
Adjustment for conversion difference in
the investment in Rayen Cura S.A.I.C. 1,481,022 3,142,699
---------- ---------
TOTAL OTHER RESERVES 7,499,397 9,155,080
========== =========
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NET WORTH
Reserve Premium Reserve Devel. Fiscal
Paid-in capital in sale Other Future Accumulated Provisional Period Year
ITEM Capital revaluation of shares Reserves Dividends Results Dividends Deficit Result
------------------------- ---------- ----------- ---------- --------- ----------- ------------ ----------- -------- ---------
Balances as of 06/30/2004
Initial balance 65,396,749 0 27,874,377 6,421,900 123,160,119 6,426,520 -958,080 0 0
Distribution result
previous fiscal year 0 0 0 0 5,468,440 -6,426,520 958,080 0 0
Final dividend previous
fiscal year 0 0 0 0 -1,612,800 0 0 0 0
Capital increases with
cash stock issue 0 0 0 0 0 0 0 0 0
Reserves and/or Profits
Capitalization 0 0 0 0 0 0 0 0 0
Development period
Accumulated deficit 0 0 0 0 0 0 0 0 0
Accumulated conversion
difference adjustment 0 0 0 1,026,122 0 0 0 0 0
Owner's equity Revaluation 0 523,174 222,995 51,375 1,014,514 0 0 0 0
Fiscal Year Result 0 0 0 0 0 0 0 0 7,125,275
Interim Dividends 0 0 0 0 0 0 -1,280,000 0 0
Final balances as
of 06/30/2004 65,396,749 523,174 28,097,372 7,499,397 128,030,273 0 -1,280,000 0 7,125,275
Initial balance as
of 06/30/2003 64,749,257 0 27,598,393 9,713,099 114,912,655 17,660,662 -3,303,936 0 0
Distribution result
previous fiscal year 0 0 0 14,356,726 -17,660,662 3,303,936 0 0
Final dividend
previous fiscal year 0 0 0 0 -5,526,400 0 0 0 0
Capital increases with
cash stock issue 0 0 0 0 0 0 0 0 0
Reserves and/or
profit Capitalization 0 0 0 0 0 0 0 0 0
Development period
accumulated deficit 0 0 0 0 0 0 0 0
Accumulated conversion
difference adjustment 0 0 0 -719,466 0 0 0 0 0
Owner's equity revaluation 0 712,242 303,583 106,844 1,449,595 0 0 0 0
Fiscal Year Result 0 0 0 0 0 0 0 0 2,940,009
Interim Dividends 0 0 0 0 0 0 -960,000 0 0
Final balances 64,749,257 712,242 27,901,976 9,100,477 125,192,576 0 -960,000 0 2,940,009
Updated Final Balances
as of 06/30/2003 65,137,753 716,515 28,069,388 9,155,080 125,943,731 0 -965,760 0 2,957,649
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH - NUMBER OF SHARES
No.
No. No. SHARES
SHARES SHARES WITH VOTING
SERIES SUBSCRIBED PAID 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$)
SUBSCRIBED PAID-IN
SERIES CAPITAL CAPITAL
------------------- ---------- -----------
SINGLE 65,396,749 65,396,749
28. Other Non-Operating Income and Expenses
As of June 30, 2004 and 2003 non-operating income totals Th Ch$ 667,949 and Th
Ch$ 416,672 respectively.
Non-operating Expenses were Th Ch$ 1,179,937 in 2004 and Th Ch$ 1,100,513 in
2003 respectively.
More detail is shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 28: OTHER NON-OPERATING INCOME AND EXPENSES
2004 2003
Th Ch$ Th Ch$
--------- ---------
INCOME
Miscellaneous Income 77,578 26,717
Tax exemptions 124,473 85,010
Offices and establishments rental 88,289 112,692
Sale of fixed assets 8,588 3,687
Indemnity for claims 0 67,258
Land granted 206,378 0
Sale of materials 6,084 7,157
Agricultural Division 15,519 0
Other various income 141,040 114,151
TOTAL NON-OPERATING INCOME 667,949 416,672
EXPENSES
Professional advice 381,294 384,170
Soap opera charge and others 0 191
Personnel Finished Contracts 49,767 27,990
Suppliers and eventualities 70,149 136,523
Share of Board of Directors 71,067 57,962
Trademarks amortization 27,864 26,019
Frequency amortization 81,343 75,010
Audit fees 2,317 0
Higher income Tax previous year 146,290 36,436
Loss in sales of fixed assets 106,212 30,154
Licenses 349 6,064
Other expenses 190,008 272,473
Insurance 24,917 21,968
ADR expenses 28,360 25,553
TOTAL NON-OPERATING EXPENSES 1,179,937 1,100,513
29. Price Level Restatements
As a result of the application of the adjustment for price level restatement
as described in Note 2 e), there was a net charge to results in 2004 and 2003
in the amount of Th Ch$ 307,756 and Th Ch$ 668,200, respectively.
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 (CHARGES)/CREDITS INDEX 06-30-2004 06-30-2003
-------------------------------------- ------------- ---------- ----------
INVENTORY CPI 213,970 148,100
FIXED ASSETS CPI 1,416,455 1,384,662
INVESTMENTS IN RELATED COMPANIES CPI 837,914 416,073
MARKETABLE SECURITIES CPI 33,236 42,494
SHORT-TERM DEBTORS CPI 61,107 34,666
LONG-TERM DEBTORS UF 2,543 2,167
ACCOUNTS RECEIVABLE RELATED COMPANIES CPI 117,495 1,314,695
OTHER NON-MONETARY ASSETS CPI 97,309 353,383
EXPENSE AND COST ACCOUNTS CPI 525,143 1,076,604
TOTAL (CHARGES)/CREDITS 3,305,172 4,772,844
LIABILITIES (CHARGES)/ CREDITS
NET WORTH CPI -1,812,057 -2,587,697
ACCOUNTS PAYABLE RELATED COMPANIES UF 13 -49
BANK LOANS UF 0 -18,578
SHORT-TERM RESERVES CPI -96,579 -18,884
LONG-TERM BANK LOANS UF 0 -60,607
LONG-TERM RESERVES CPI -79,482 -54,666
LONG-TERM CREDITORS CPI -18,273 -578
OBLIGATIONS WITH THE PUBLIC CPI -502,785 -1,152,628
MINORITY INTEREST CPI -121,451 -402,955
OTHER LIABILITIES CPI -3,014 -135,090
SHORT-TERM CREDITORS CPI -4,826 0
NON-MONETARY LIABILITIES CPI -136,842 -99,079
INCOME ACCOUNTS CPI -837,632 -910,234
TOTAL (CHARGES)/ CREDITS -3,612,928 -5,441,045
(LOSS) INCOME FROM ADJUSTMENT
FOR PRICE LEVEL RESTATEMENT -307,756 -668,200
30. Exchange Differences
There is a net credit to results in the 2004 fiscal year of Th Ch$ 2,418,146
and a net charge to results of Th Ch$ 4,463,986 in 2003, as a consequence of
exchange differences.
According to dispositions set by Circular No. 1560 of the SVS, the net effect
on results of the adjustment of assets and liabilities adjustable in foreign
currency discounting inflationary effects is presented on this item.
More information is shown on the attached chart.
Cristalerias de Chile S.A.
NOTE 30: EXCHANGE DIFFERENCES
AMOUNT
-----------------------
ITEM CURRENCY 06-30-2004 06-30-2003
--------------------------------- -------- ---------- ----------
ASSETS (CHARGES) / CREDITS
CURRENT ASSETS DOLLARS 716,428 -408,199
CURRENT ASSETS OTHER CUR. 76,766 -44,809
CLIENTS DOLLARS 173,052 -205,334
CLIENTS OTHER CUR 182,686 302,485
TIME DEPOSITS DOLLARS 0 -158,938
INVENTORY DOLLARS 85,459 -114,669
LONG TERM PLACEMENTS DOLLARS 573,673 -588,092
FUTURE CONTRACT EFFECT DOLLARS -12,768 -295,465
OTHER ASSETS DOLLARS 616,227 -21,066
OTHER ASSETS OTHER CUR. 26,300 -15,061
INFLATIONARY EFFECT DOLLARS -194,685 -124,018
MARKETABLE SECURITIES DOLLARS 1,742,267 -1,508,055
MARKETABLE SECURITIES EUROS 1,157,849 0
LONG-TERM FIXED DOLLARS 43,370 0
MISCELLANEOUS CREDITORS DOLLARS 7,036 0
TOTAL (CHARGES) CREDITS 5,193,660 -3,181,221
LIABILITIES (CHARGES) CREDITS
ACCOUNT PAYABLE DOLLARS -55,086 84,982
DOCUMENTS PAYABLE DOLLARS -79,098 153,141
DOCUMENTS PAYABLE OTHER CUR. -6,397 -19,095
MISCELLANEOUS CREDITORS SHORT TERM DOLLARS -40,954 15,151
SHORT TERM RESERVES DOLLARS -137,927 2,353
LONG-TERM BANK CREDITS DOLLARS 2,125,000 980,347
LONG TERM RESERVES DOLLARS -127,586 61,448
OTHER LONG-TERM LIABILITIES DOLLARS -248,295 -193,499
OTHER LONG-TERM LIABILITIES OTHER CUR. -92,978 -53,160
MISCELLANEOUS LONG-TERM CREDITORS DOLLARS -9,994 3,943
FUTURE CONTRACT EFFECT DOLLARS 30,112 -2,754,341
INFLATIONARY EFFECT DOLLARS 118,428 435,965
SHORT-TERM BANK CREDITS DOLLARS -739 -
TOTAL (DEBITS) CREDITS -2,775,514 -1,282,765
(LOSS) PROFIT FROM EXCHANGE DIFFERENCES 2,418,146 -4,463,986
31. Extraordinary Items
As of June 30, 2004 and 2003 there are no transactions for this concept.
32. Expenses for issue and placement of stocks and debt instruments
The Parent Company and the subsidiary S.A. Vina Santa Rita carried out bond
placements in August 2002 and March 2001 respectively, which produced
placement expenses, which as of June 30, 2004 totaled Th Ch$ 3,526,957 (Th Ch$
3,911,833 in 2003).
The charge to results for the amortization of these expenses is Th Ch$ 232,779
in 2004 (Th Ch$ 183,706 in 2003), and is realized according to the maturity of
each series.
Detail of expenses is as follows:
2004 2003
Th Ch$ Th Ch$
------------------ ------------------
Short- Long- Short- Long-
DETAILS Term Term Term Term
------------------------------------- ------- --------- ------- ---------
Placement rate differential 198,933 2,195,227 199,477 2,404,145
Stamp and Seal Tax 143,460 904,588 143,992 1,043,401
Bonds placement Commission and others 18,076 66,673 23,085 97,733
Total 360,469 3,166,488 366,554 3,545,279
33. Cash Flow Statement
CASH FLOW STATEMENT
1. The following it the detail of the item OTHERS:
2004 2003
Th Ch$ Th Ch$
---------- ----------
541.11.40 Other Income Received
Treasury Refund Income Tax and other taxes 15,000 981,808
Recover VAT exportation 672,946 975,801
Insurance Severance 0 67,258
Discount for paid of customs duties 54,737 0
Exchange difference 100,216 293,398
Loan Adjustment 42,646 0
Tax exemption 124,473 0
Other income 143,177 220,725
Total 1,153,195 2,538,990
541.11.80 Other expenses paid
Exchange difference 149,150 2,084,888
Donations 41,663 25,849
Personnel contracts Finished 49,767 27,990
Advice Services 71,750 69,840
Shareholder's bonds 78,303 57,962
Other expenses 323,996 419,560
Total 714,629 2,686,089
541.13.30 Other income from investments
Maturity of future contracts 0 1,965,366
Total 0 1,965,366
541.13.65 Other investment disbursements
Purchase of shares 0 319,759
Future contracts 235,203 0
Others 0 0
Total 235,203 319,759
Following are financing and investment activities that did not generate cash
flow during the fiscal year, but that commit future cash flows of the Company:
ITEM Amount Th Ch $ Due Date
-------------------------- -------------- ------------------
Dividend 158 payable (1,280,000) July 2004
Investment imports payable (537,365) 2nd semester 2004
Total (1,817,365)
34. Derivative Contracts
FUTURE CONTRACTS IN FOREIGN CURRENCY
As of June 30 2004 the Parent Company and its subsidiaries S.A. Vina Santa
Rita have signed future sale contracts in foreign currency of Th US$ 81,600
and future purchase contracts of Th US$ 42,600 in 2004 (purchase contracts for
Th US$ 131,200 in 2003) subject to the regulations of Chapter VII of the
Compendium of International Exchange Regulations of the Central Bank of Chile
and Chapter 13-2 of the compilation of Regulations of Banks and Financial
Institutions.
Additional information is presented on the attached chart listed in the order
of each quarterly expiration period.
The contracts maintained by the companies as of June 30, 2004 and 2003 have
been taken both to shelter from variations of the exchange rate of the
American dollar (contracts of existing transactions) as well as investment.
Forward contracts taken in order to cover existing items are related,
according to management, with covering the Company's obligations in dollars.
According to Bulletin No.57 of the Accountants Association of Chile, A.G.,
results generated by these contracts are recognized in results as long as
effects from items subject to coverage are recognized.
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS
DESCRIPTION OF CONTRACTS ACCOUNTS AFFECTED
------------------------------------- -----------------------------------------
PROTECTED ITEM EFFECT ON RESULT
MATURITY OR PURCHASE/ OR TRANSACTION VALUE OF ASSETS/LIABILITIES -------------------
TYPE OF TYPE OF VALUE OF EXPIRATION SPECIFIC SALE ----------------- PROTECTED --------------------- NOT
DERIVATIVE CONTRACT CONTRACT DATE ITEM POSITION NAME AMOUNT ITEM NAME AMOUNT REALIZED REALIZED
---------- -------- ---------- ----------- --------- --------- ------- --------- --------- ----------- --------- ---------- --------
FR CI 25,992,590 THIRD 2004 EXCH RATE P - - - LIABILITIES 2,067,710 -2,067,710 -
FR CI 36,977,320 THIRD 2004 EXCH RATE S - - - ASSETS 326,444 326,444 -
FR CI 1,931,256 FOURTH 2004 EXCH RATE S - - - ASSETS 22,352 22,352 -
FR CCPE 1,384,520 THIRD 2004 EXCH RATE P DOLLAR
LOAN 1,384,520 1,272,600 LIABILITIES 118,523 -6,604 -
FR CI 2,076,780 THIRD 2004 EXCH RATE P - - - LIABILITIES 118,523 121,491 -
FR CI 11,472,970 THIRD 2004 EXCH RATE S - - - ASSETS 69,498 -62,406 -
FR CI 3,216,050 FOURTH 2004 EXCH RATE S - - - ASSETS 34,461 34,461 -
35. Contingencies and Restrictions
CONTINGENCIES AND COMMITMENTS
As of June 30, 2004, there are guarantees delivered in the amount of Th Ch$
16,857,739 (Th Ch$ 18,486,174 in 2003), according to the detail in the
attached chart.
LAWSUITS OR OTHER LEGAL ACTIONS THE COMPANY IS INVOLVED IN
As of June 30, 2004 and 2003 there are pending lawsuits and other legal
actions corresponding to the subsidiary Red Televisiva Megavision, which are
presented in the annexed chart.
RESTRICTIONS
I) SYNDICATED LOAN
In relation to the syndicated loan subscribed with JP Morgan Chase Bank and
other 8 creditor banks for US$ 50 million, 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 0.45 to 1.0 ratio at any time.
Capitalization is defined as the sum of Net Worth plus minority interest plus
total consolidated debt.
b) TOTAL CONSOLIDATED DEBT TO EBITDA RATIO
Cristalerias de Chile S.A will not allow the Consolidated Net Debt to EBITDA
relation to exceed the 2.5 to 1.0 ratio at any time.
Consolidated EBITDA is described as the sum of the following: operating income
plus depreciation and amortization; plus non cash charges (as long as they
have been deducted when determining operating income) and cash income from
interests minus non/cash credits, (as long as they have been aggregated when
determining operating income), in each case for each period.
c) INTEREST COVERAGE RATIO
Cristalerias de Chile S.A. will not allow the Interest Coverage Ratio to be
lower than 4.0 ratio at any time.
Interest coverage is defined as interests at the day of the respective
determination, the ratio between non consolidated EBITDA for the period of 4
consecutive fiscal quarters that ends on, or most recently ebded before, that
date, and interest expenses for that period.
d) NET EQUITY
Cristalerias de Chile S.A. will maintain a minimum of UF 10,000,000.
As of June 30, 2004 Cristalerias de Chile S.A. complies with 100% of
restrictions agreed with the lending banks.
II) BOND ISSUE
The contract of bonds issue with date May 29, 2002 signed with Banco Chile as
the bond owner's representative, established, among others the following
financial obligations:
a) Financial Indicators
Individual Balance: Leverage not higher than 1.2 times.
Consolidate Balance: Leverage not higher than 1.4 times.
b) Insurances for assets of the company and its subsidiaries.
c) The operations for which art. 44 and 89 of law 18,046 refer to must be
carried out according to the conditions that these establish.
d) Other minor restrictions related with the bond issue contract.
As of June 30, 2004 and 2003 Cristalerias de Chile S.A. complies with 100% of
the restrictions imposed by the bonds creditors.
OTHER CONTINGENCIES
As of the closing date of financial statements, management is not aware of any
other contingencies that could affect the company.
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - DIRECT GUARANTEES
BALANCES PENDING
ASSETS PAYMENT AS OF
COMMITTED CLOSING DATE OF RELEASE OF GUARANTEES
--------------- FINANCIAL STATEMENTS --------------------------------------------
CREDITOR OF RELATION- TYPE OF BOOK --------------------- 06/30/ 06/30/ 06/30/
GUARANTEE DEBTOR NAME SHIP GUARANTEE TYPE VALUE 06/30/2004 06/30/2003 2005 ASSETS 2006 ASSETS 2007 ASSETS
------------- -------------- ---------- --------- ----- --------- ---------- ---------- ------- ------ ------- ------ ------- ------
EDIFICIO CRISTALERIAS COMMERCIAL TIME FLOOR 15,822 15,822 7,999 0 0 0 0 15,822 0
METROPOLIS DE CHILE S.A. DEPOSIT
AGF
BANCO RED TELEVISIVA COMMERCIAL MORTGAGE LAND 3,408,506 1,654,262 2,129,203 502,917 0 460,538 0 60,538 0
SANTANDER MEGAVISION
CHILE
SCOTIABANK RED TELEVISIVA COMMERCIAL PLEDGE TV 157,162 1,636,386 2,061,863 411,414 0 408,324 0 408,324 0
MEGAVISION EQUIP
BANCO RED TELEVISIVA COMMERCIAL MORTGAGE TV 31,385 297,929 470,695 170,317 0 127,612 0 0 0
CREDITO E MEGAVISION EQUIP
INVERSIONES
SUNDRY RED TELEVISIVA COMMERCIAL ADVERTIS- - 0 13,253,340 13,816,414 0 0 0 0 0 0
CLIENTS MEGAVISION ING
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - INDIRECT GUARANTEES
BALANCES PENDING
ASSETS PAYMENT AS OF
DEBTOR COMMITTED CLOSING DATE OF RELEASE OF GUARANTEES
------------------------- ---------- FINANCIAL STATEMENTS --------------------------------------------
CREDITOR OF RELATION- TYPE OF BOOK --------------------- 06/30/ 06/30/ 06/30/
GUARANTEE NAME SHIP GUARANTEE TYPE VALUE 06/30/2004 06/30/2003 2005 ASSETS 2006 ASSETS 2007 ASSETS
----------------- -------------- ---------- --------- ---- ----- ---------- ---------- ------- ------ ------- ------ ------- ------
Societe des RAYEN CURA AFFILIATE SOLIDARY 0 0 1,832,545 2,835,765 733,018 0 733,018 0 366,509 0
Participations S.A.I.C.
Financieres et
Industrielles
Envases CMF CRISTALERIAS AFFILIATE SOLIDARY 0 0 207,423 331,333 0 0 0 0 207,423 0
guarantee DE CHILE S.A.
P.I.A.S
CRISTALERIAS DE CHILE S.A.
NOTE 35: Trials
Committed
amount
(approximately
Court Cause Rol No. Origin Stage Th Ch$)
------- ------------- ------ ------------------------------- --------------
12 3025-1997 Civil Given sentence in first verdict 100,000
in favor of Megavision
16 4822-1999 Civil Given sentence in first verdict 10,000
against Megavision
1 1242-2000 Labor First verdict pending 10,000
5 3468-2001 Labor First verdict pending 3,000
1 4391-2003 Labor First verdict 2,100
C. of 7643-2000 CNTV Verdict pending 900
Appeals
36. Guarantees obtained from third parties
As of June 30, 2004 and 2003 the Parent Company and the subsidiary S.A. Vina
Santa Rita have received guarantees from third parties that are shown below:
2004 2003
Concept ThCh$ ThCh$
--------------------------------------------------- --------- ---------
Rental of Property Cafe Sur Andino (UF 260) 4,424 0
Rental of Property Banco Security 5,173 5,186
Rental of Property to Telecomunicaciones
Cono Sur Ltda. (UF 130) 0 2,218
Rental of Property Office AGF Building (UF 365.9) 6,226 6,242
Rental of Property Office Metropolis (UF 189.2) 3,219 3,228
Sight drafts suppliers 1,674 1,684
Installation of Buin Tanks (Tersanoix S.A.) 0 157,127
Grape purchase (contracts) 928,011 1,061,681
Mortages (grape purchase) 138,523 0
C y CPO Constructora (Salon Andino Sta. Rita) 162,860 0
Purchase of vine stem cuttings and plants (Intelmaq) 0 36,856
Transporters Guarantee Check 42,000 0
Underground materials storehouse Buin Salfa Montajes 0 33,474
--------- ---------
1,292,110 1,307,696
========= =========
37. Local and Foreign Currency
Charts are attached showing the foreign currency balance as of June 30, 2004
and 2003.
--
Cristalerias de Chile S.A.
--
--
NOTE 37: LOCAL AND FOREIGN CURRENCY - ASSETS
Amount
----------------------
Items Currency 06-30-2004 06-30-2003
-------------------------------------- ------------------ ---------- ----------
Available funds Non-adjust. Ch$ 1,776,757 1,845,203
Other currencies 0 11,590
Dollars 507,374 702,002
Euros 38,068 4,837
Argentine Peso 12,036 24,844
Time deposits Dollars 0 11,046,647
Non-adjust Ch$ 5,353,974 1,105,088
Marketable Securities Adjustable Ch$ 4,187,786 4,183,939
Dollars 34,310,339 63,534,899
Sales receivable Non-adjust Ch$ 31,002,822 25,604,815
Dollars 4,004,413 4,523,946
Euros 2,775,176 3,013,788
Other currencies 2,808,254 1,860,252
Argentine Peso 328,784 237,887
Documents Receivable Non-adjust. Ch$ 4,752,368 4,522,443
Argentine Peso 13,620 18,685
Sundry Debtors Euros 0 1,844
Non-adjust. Ch$ 2,201,758 785,656
Adjustable Ch$ 108,547 93,486
Dollars 672,560 657,154
Argentine Peso 30,187 221,268
Documentos and Accts. Receivable Dollars 447,698 0
Non-adjust. Ch$ 3,134,306 560,059
Adjustable Ch$ 109,701 15,822
Inventory Adjustable Ch$ 43,194,598 38,645,382
Dollars 2,898,907 5,696,404
Argentine Peso 701,782 700,021
Taxes Receivable Argentine Peso 148,675 19,032
Non-adjust. Ch$ 41,871 1,306,305
Adjustable Ch$ 1,289,987 696,695
Dollars 0 27,011
Prepaid expenses Adjustable Ch$ 786,123 1,104,642
Non-adjust. Ch$ 876,359 283,441
Dollars 322,648 363,627
Argentine Peso 0 27,373
Deferred Taxes Non-adjust. Ch$ 829,545 726,850
Adjustable Ch$ 911,489 253,273
Other Current Assets Non-adjust. Ch$ 10,415,727 5,963,131
Adjustable Ch$ 634,012 1,345,974
Dollars 261,775 3,386,464
Available funds Adjustable Ch$ 3,036 0
Time Deposit Adjustable Ch$ 30,487 0
Marketable Securities Euros 29,132,370 0
Non-adjust. Ch$ 176,393 0
Inventory Non-adjust. Ch$ 423,301 0
FIXED ASSETS Adjustable Ch$ 135,583,958 140,831,612
Investments in related companies Adjustable Ch$ 87,808,495 93,491,493
Investments in other companies Adjustable Ch$ 788,803 831,373
Negative Goodwill Adjustable Ch$ 4,622,147 4,213,759
Dollars 4,373,151 5,150,694
Long-term debtors Adjustable Ch$ 140,800 173,463
Documents receivable in rel.companies Non-adjust. Ch$ 855,171 2,883
Intangibles Adjustable Ch$ 11,913,536 11,874,078
Amortization Adjustable Ch$ -1,325,968 -1,109,319
Other Adjustable Ch$ 2,971,838 4,469,809
Non-adjust. Ch$ 999,814 496,565
Dollars 9,210,430 10,366,195
Argentine Peso 581,434 0
Long-term debtors Dollars 63,630 0
Documents receivable in rel.companies Adjustable Ch$ 251,385 0
Investments in related companies Dollars 12,955,478 13,724,552
Total Assets
Non-adjust. Ch$ 62,840,166 43,202,439
Other currencies 2,808,254 1,871,842
Dollars 70,028,403 119,179,595
Euros 31,945,614 3,020,469
Argentine Pesos 1,816,518 1,249,110
Adjustable Ch$ 294,010,760 301,115,481
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - CURRENT LIABILITIES
Up to 90 days 90 Days to 1 Year
----------------------------------- -----------------------------------
06.30.2004 06.30.2003 06.30.2004 06.30.2003
----------------- ----------------- ----------------- -----------------
Avg. Avg. Avg. Avg.
Annual Annual Annual Annual
Amount Int. Amount Int. Amount Int. Amount Int.
ITEM Currency Thou Ch$ Rate Thou Ch$ Rate Thou Ch$ Rate Thou Ch$ Rate
--------------------------------- ----------------- ---------- ------ ---------- ------ ---------- ------ ---------- ------
Current Liabilities
Short-term obligations with banks Adjust. Ch$ 0 - 0 - 0 - 0 -
and financial institutions Argentine Peso 0 - 19,951 2.370 6,968 2.48 0 -
Other currencies 0 - 0 - 0 - 0 -
Long-term obligations with banks Other currencies 316,169 2.88 326,448 5.390 892,069 2.88 1,081,792 5.39
and financial institutions Dollars 233,400 1.72 260,323 2.20 987,214 1.95 1,946,365 1.81
Non-adjust. Ch$ 0 - 0 - 265,573 4.94 267,166 4.94
Dollars 139,500 2.05 156,829 2.113 0 - 0 -
Adjust. Ch$ 0 - 0 - 1,190 7.00 1,206 7.00
Dollars 2,157 10.42 31,914 11.14 70,932 11.07 208,360 10.99
Obligations with the public Adjust. Ch$ 741,140 4.75 738,715 4.75 51,507 6.29 51,647 6.06
Obligations with the public Adjust. Ch$ 947,824 5.80 944,722 5.80 0 - 0 -
Dividends payable Non-adjust. Ch$ 652,088 - 510,759 - 0 - 0 -
Accounts payable Dollars 344,429 - 1,018,180 - 184,554 - 1,793,269 -
Non-adjust. Ch$ 15,330,404 - 15,985,851 - 31,546 - 0 -
Other currencies 5,920 - 3,493 - 0 - 0 -
Euros 19,707 - 16,221 - 0 - 0 -
Argentine Peso 198,055 - 135,631 - 0 - 0 -
Documents Payable Adjust. Ch$ 0 - 0 - 0 - 47,953 -
Dollars 2,905,546 - 2,990,306 - 10,630 - 294,699 -
Argentine Peso 48,486 - 54,017 - 0 - 0 -
Euros 215,111 - 106,418 - 0 - 0 -
Other currencies 4,269 - 556,203 - 0 - 0 -
Sundry Creditors Non-adjust. Ch$ 277,800 - 280,025 - 0 - 0 -
Dollars 613,151 - 2,266,588 - 0 - 0 -
Adjust. Ch$ 238 - 295 - 0 - 0 -
Docts and accts payable to rel co. Adjust. Ch$ 1,761 - 3,549 - 0 - 15,822 -
Non-adjust. Ch$ 813,161 - 460,068 - 0 - 0 -
Argentine Peso 0 - 266,464 - 0 - 0 -
Dollars 289,792 - 0 - 0 - 0 -
Provisions Adjust. Ch$ 376,567 - 317,019 - 185,502 - 183,430 -
Non-adjust. Ch$ 11,762,814 - 9,224,782 - 225,534 - 188,402 -
Dollars 1,177,895 - 1,222,852 - 1,997,982 - 0 -
Argentine Peso 90,197 - 39,582 - 0 - 0 -
Euros 726,836 - 398,799 - 0 - 0 -
Other currencies 702,084 - 470,847 - 0 - 0 -
Withholdings Non-adjust. Ch$ 2,282,069 - 1,433,397 - 0 - 0 -
Dollars 0 - 19,068 - 0 - 0 -
Argentine Peso 11,520 19,419 0 0 -
Prepaid income Non-adjust. Ch$ 4,136,733 3,992,961 0 0
Other Current Liabilities Adjust. Ch$ 0 4,995,904 0 0
Dollars 1,920,957 909,776 0 39,967
Total Current Liabilities
- Argentine Pesos 348,258 - 535,064 - 6,968 - 0 -
- Other currencies 1,028,442 - 1,356,991 - 892,069 - 1,081,792 -
- Dollars 7,626,827 - 8,875,836 - 3,251,312 - 4,282,660 -
- Non-adjust Ch$ 35,255,069 - 31,887,843 - 522,653 - 455,568 -
- Adjust. Ch$ 2,067,530 - 7,000,204 - 238,199 - 300,058 -
- Euros 961,654 - 521,438 - 0 - 0 -
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES CURRENT PERIOD
06-30-2004
1-3 Years 3-5 years 5-10 Years More than 10 years
-------------------- -------------------- -------------------- -------------------
Average Average Average Average
Amount Interest Amount Interest Amount Interest Amount Interest
ITEM Currency Thou Ch$ Rate Thou Ch$ Rate Thou Ch$ Rate Thou Ch$ Rate
--------------------------- ---------------- ---------- -------- ---------- -------- ---------- -------- ---------- -------
Obligations with Banks and Dollars 7,953,750 2.05 23,861,250 2.05 0 - 0 -
Financial Institutions Argentine Peso 48,087 2.48 10,506 2.48 0 - 0 -
Non-adjust. Ch$ 398,360 4.94 0 - 0 - 0 -
Adjustable Ch$ 2,872,248 2.88 122,773 2.88 0 - 0 -
Obligations with the public Adjustable Ch$ 3,403,490 6.29 0 - 34,029,900 4.75 17,014,450 6.29
Adjustable Ch$ 0 - 0 - 0 - 35,731,395 5.80
Sundry creditors Dollars 123,743 12.25 0 - 0 - 0 -
Adjustable Ch$ 38,781 - 0 - 0 - 0 -
Dollars 20,930 11.02 3,991 6.07 0 - 0 -
Adjustable Ch$ 1,190 7.00 0 - 0 - 0 -
Dollars 16,966 - 0 - 0 - 0 -
Long-term provisions Dollars 2,196,952 - 0 - 0 - 0 -
Adjustable Ch$ 4,220,678 - 0 - 0 - 0 -
Deferred taxes Adjustable Ch$ 2,773,948 - 0 - 0 - 0 -
Non-adjust. Ch$ 1,878,079 - 0 - 0 - 0 -
Total long-term liabilities
- Dollars 10,312,071 - 23,865,241 - 0 - 0 -
- Argentine Peso 48,087 - 10,506 - 0 - 0 -
- Non-adjust. Ch$ 2,276,439 - 0 - 0 - 0 -
- Adjustable Ch$ 13,310,335 - 122,773 - 34,029,900 - 52,745,845 -
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES PREVIOUS PERIOD
06-30-2003
1-3 Years 3-5 years 5-10 Years More than 10 years
-------------------- -------------------- -------------------- -------------------
Average Average Average Average
Amount Interest Amount Interest Amount Interest Amount Interest
ITEM Currency Thou Ch$ Rate Thou Ch$ Rate Thou Ch$ Rate Thou Ch$ Rate
--------------------------- ---------------- ---------- -------- ---------- -------- ---------- -------- ---------- -------
Obligations with banks Dollars 8,791,434 2.113 26,374,302 2.113 0 - 0 -
and financial institutions Dollars 73,391 2.58 0 - 0 - 0 -
Argentine Peso 1,348,302 1.94 0 - 0 - 0 -
Non-adjust. Ch$ 534,333 4.94 133,583 4.94 0 - 0 -
Adjustable Ch$ 4,143,357 5.39 640,337 5.49 0 - 0 -
Obligations with public Adjustable Ch$ 3,412,286 6.25 0 - 34,122,856 4.75 17,061,428 6.25
Adjustable Ch$ 0 - 0 - 0 - 35,828,999 5.80
Long-term creditors Adjustable Ch$ 45,111 - 0 - 0 - 0 -
Dollars 141,433 12.25 0 - 0 - 0 -
Dollars 95,376 11.28 4,574 9.42 0 - 0 -
Adjustable Ch$ 2,378 7.00 0 - 0 - 0 -
Non-adjust. Ch$ 63,472 - 0 - 0 - 0 -
Long-Term provisions Dollars 3,441,104 - 0 - 0 - 0 -
Adjustable Ch$ 4,137,197 - 0 - 0 - 0 -
Deferred taxes Adjustable Ch$ 2,473,049 - 0 - 0 - 0 -
Non-adjust. Ch$ 2,036,947 - 0 - 0 - 0 -
Total long-term liabilities
- Dollars 12,542,738 - 26,378,876 - 0 - 0 -
- Argentine Peso 1,348,302 - 0 - 0 - 0
- Non-adjust. Ch$ 2,634,752 - 133,583 - 0 - 0 -
- Adjustable Ch$ 14,213,378 - 640,337 - 34,122,856 - 52,890,427 -
38. Penalties
As of June 30, 2004 and 2003 the SVS and other administrative authorities have
not imposed any penalties to the company, its directors or its management.
39. Subsequent Events
On June 22, 2004, the Parent Company agreed to pay interim dividend No. 158 of
Ch$ 20 per share over 64,000,000 shares (Th Ch$ 1,280,000), which was made
effective on July 15, 2004.
At the closing date of financial statements and the date of issue of the
present report there were no subsequent events that could significantly affect
the economic and financial situation of the Company.
40. COMPANIES UNDER SPECIAL NORM
Not applicable.
41. ENVIRONMENT
In line with its permanent commitment with environment preservation the
Company has effected as of June 2004 payments for advisories for this concept
of Th Ch$ 2,644, that have been charged to results of the fiscal year 2004.
During fiscal year 2003 the Parent Company carried out investments of ThCh$
206,705, which corresponded to the purchase of NOX emission treatment
equipment installed at new Furnace B.
The subsidiary S.A. Vina Santa Rita has invested Th Ch$ 40,286 during the
period January - June 2004 (Th Ch$ 7,961 in 2003) in order to comply with
ordinances and laws related to Industrial Process and Installations.
42. STOCK TRANSACTIONS
As of June 30, 2004 and 2003 the following stock transactions were carried out
by members of the board, majority stockholders and related individuals:
TRANSACTIONS OF INDIVIDUALS RELATED TO MEMBERS OF THE BOARD
2004 2003
-------------- --------------
NAME Initial Purchase Sale Purchase Sale
----------------------------- ------- -------- ---- -------- ----
Asesorias Portofino Ltda. BSG 21,000 0 0 0
Inmobiliaria Villarrica Ltda. RCV 181,669 0 0 0
Vial de Claro Maria Luisa RCV 650 0 0 0
o BSG related with Director Mr. Baltazar Sanchez
o RCV related with the President Mr. Ricardo Claro
TRANSACTIONS OF DIRECTORS, MANAGEMENT AND ACCOUNT INSPECTORS
None.
TRANSACTIONS OF MAJORITY SHAREHOLDERS
None.
43. DISTRIBUTION OF SHAREHOLDERS
The distribution of stockholders as of June 30, 2004 and 2003 is the
following:
% of No. of
Shareholding Shareholders
------------------- ------------------
TYPE OF SHAREHOLDER 2004 2003 2004 2003
---------------------------- --------- -------- -------- --------
10% or more shareholding 34.03 34.03 1 1
Less than 10% shareholding
with investment equal to or
higher than 200 UF 65.84 65.83 265 270
Less than 10% shareholding
with investment lower than
200 UF 0.13 0.14 762 787
TOTAL 100.00 100.00 1,028 1,058
CONTROLLER OF THE COMPANY 52.14 52.14 3 3
44. BOARD OF DIRECTORS REMUNERATIONS
As of June 30, 2004 and 2003 Th Ch$ 343,910 and Th Ch$ 901,660 were paid and
provisioned by the Parent Company and the subsidiary S.A. Vina Santa Rita,
respectively, according to the following detail:
2004 2003
ThCh$ ThCh$
--------- ---------
Participation of previous fiscal year profits 336,073 896,098
Compensations for assistance to sessions 5,576 4,212
Board Committee compensation 2,261 1,350
- -
------- -------
TOTAL 343,910 901,660
======= =======
On the other hand, Th Ch$ 356,078 and Th Ch$ 166,756 respectively have been
provisioned for participation of year 2004 and 2003.
45. TIME DEPOSITS
As of June 30, 2004 and 2003 the company presents the following information:
2004 2003
INSTITUTION CURRENCY Th$ Th$
------------------------------ ---------- ---------- ----------
Banco Santander New York US$ 0 1,091,155
Banco Deutsche Bank Chile S.A. US$ 0 2,397,748
Banco de Santander US$ 0 4,510,021
Banco Chile US$ 0 2,446,112
Banco de Credito e Inversiones US$ 0 601,611
Banco de Santander $ 5,004,267 433,451
Banco de Chile $ 380,194 302,806
BankBoston $ 0 368,831
- -
--------- ----------
TOTAL 5,384,461 12,151,735
========= ==========
RELEVANT EVENTS
On June 23, 2004, the SVS was informed that in the previous day, the Board of
the Company had approved a US$ 210 million investment plan, in order to
duplicate the production of glass containers in a 10 year period.
The first stage of the development plan considers the construction of a new
plant, equipped with 4 new fabrication lines and a furnace with a production
capacity of 360 tons per day, which supposes a USS 110 million investment and
that would be financed by a combination of internal resources and credits.
Start of operations is scheduled for 2006 and will allow to increase the
present capacity of production by 35%.
The following stages of expansion imply adding 7 fabrication lines and 2
furnaces with production capacities over 400 tons per day, which will be
materialized in successive stages, in line with market needs.
CRISTALERIAS DE CHILE S.A.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2004
1.- CONSOLIDATED FINANCIAL INDICATORS
06-30-2004 06-30-2003 12-31-2003
---------- ---------- ----------
LIQUIDITY
Current liquidity times 3.67 3.29 4.44
Acid ratio times 2.67 2.40 3.40
INDEBTEDNESS
Leverage ratio times 0.80 0.87 0.75
Short-term debt % 27.63 27.98 21.59
Long-term debt % 72.37 72.02 78.41
Interest expenses Coverage times 4.15 2.16 2.03
ACTIVITY
Total assets MM Ch$ 463,450 469,639 441,449
Investments MM Ch$ 6,454 18,083 27,805
Disposal of property MM Ch$ 69 287 372
Inventory turnover Times n.a. n.a. n.a.
Inventory permanence Days n.a. n.a. n.a.
RESULTS
Sales MM Ch$ 80,299 76,938 171,301
Cost of sales MM Ch$ 51,375 49,280 106,531
Operating income MM Ch$ 15,734 15,613 37,943
Interest expenses MM Ch$ 3,338 3,498 6,884
Non-operating results MM Ch$ (4,239) (9,885) (28,251)
E.B.I.T.D.A. MM Ch$ 21,905 14,934 29,388
After-tax income MM Ch$ 7,125 2,958 6,478
PROFITABILITY
Return on equity % 3.1 1.3 2.8
Return on assets % 1.5 0.6 1.5
Return on operating assets % 6.4 6.6 16.4
Profit per share $ 111.3 46.2 101.2
Return on dividends % 1.4 2.6 2.4
Current liquidity Ratio of current assets to current liabilities.
Acid ratio: Ratio of uncommitted funds to current liabilities.
Leverage ratio: Ratio of total current liabilities to net worth.
Interest Expenses Coverage: 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
E.B.I.T.D.A. Earnings before interest, taxes, depreciation,
amortization, and extraordinary items.
Return on dividends: Sum of dividends paid in the last twelve months
divided by market price of stock at closing of
period.
The main trends observed in the 2004 fiscal year indicators are:
LIQUIDITY INDICES
An increase in the index can be observed with respect to June 2003 in the
liquidity index as a consequence the payment of current portion of the
long-term bank debt and an increase sales debtors due to higher sales.
INDEBTEDNESS INDICES
Indebtedness index shows a decrease with respect to June 2003 due to a
decrease of liabilities. The distribution of the short-term and long-term debt
remains stable.
The interest expenses coverage ratio shows an increase with respect to the
previous year, due to higher net income during the first half of 2004.
PROFITABILITY INDICES
Equity and assets profitability indices show an increase with respect to first
half 2003, due to a higher net income during the present fiscal year.
In spite of the increase of the operating income of the profitability indices
of the operating assets decreases slightly, due to an increase of these
assets.
Income per share shows an increase with respect to the previous period due to
the higher income during the present semester with respect to the first
semester of year 2003.
On the other hand, return of dividends shows a decrease with respect to the
previous year, due to lower dividends distributed during the last 12 months.
2. DIFFERENCE BETWEEN BOOK VALUE AND MARKET VALUE OF MAIN ASSETS.
The financial statements as of June 30, 2004 have been prepared according to
generally accepted accounting principles and general and specific norms of the
Securities and Insurance Commission, which is the agency that regulates the
Company. The valuation of the assets includes adjustment for currency
devaluation, provisions, and technical revaluations. We believe the foregoing
is a reasonable way to value the Company's permanent investments.
As of June 30, 2004 there were financial investments in stocks recorded in the
accounting according to their purchase price at Ch$ 4,188 million whose market
value on the same date was Ch$ 5,410 million.
3. RESULTS FOR THE PERIOD
3a. Consolidated Result
Cristalerias de Chile S.A. consolidates its results with Vina Santa Rita,
CIECSA, Cristalchile Comunicaciones S.A., Cristalchile Inversiones S.A. and
Apoger.
Cristalerias' consolidated sales reached Ch$ 80,299 million, 4.4% over 2003.
Higher sales result fundamentally from higher sales at Santa Rita (6.7%) and
CIECSA (10.3%), partially compensated by lower sales in the glass container
business (-0.7%). Consolidated operating income reached Ch$ 15,734 million,
compared with Ch$ 15,613 million in 2003, of which the glass container
business contributed Ch$ 10,135 million (Ch$ 9,685 million in 2003), Santa
Rita Ch$ 4,149 million (Ch$ 4,997 million in 2003) and CIECSA Ch$ 1,417
million (Ch$ 808 million in 2003).
The Company's net income was Ch$ 7,125 million, compared with Ch$ 2,958
million in 2003. This result is mainly explained by a better non-operting
result.
During 2004 the Company registered a consolidated non-operting loss of Ch$
4,239 million, compared with a Ch$ 9,885 million non-operating loss in 2003.
The former is mainly explained by an income from exchange differences of Ch$
2,418 million in 2004 vs. a Ch$ 4,464 million loss in 2003; partially
compensated by a higher net loss from subsidiaries that do not consolidate,
that passed from Ch$ 1,920 million in 2003 to Ch$ 3,166 million in 2004,
fundamentally due to lower results at Metropolis-Intercom and Envases CMF. The
net loss from subsidiaries includes a Ch$ 2,088 million charge in 2004 (Ch$
2,095 million in 2003) corresponding to goodwill amortization, which does not
constitute cash flow.
The following analysis explains Cristalerias' result based on individual
financial statements, as well as those of its main subsidiaries.
3b. Individual Result
The Company had non-consolidated sales of Ch$ 33,298 million, compared to Ch$
33,524 million in the previous fiscal year. Volumes sold increased by 7.4%,
reaching 120,393 tons., mainly due to higher sales of bottles for wine, the
returnable beer and food markets; partially compensated by lower sales to the
non-returnable beer, liquor and soft drinks markets. Average prices declined
by 7.5%, mainly explained by the strong decrease in the US$/Peso exchange rate
that passed from Ch$ 723,66 per to dollar on average during the first semester
of 2003 to Ch$ 608,22 per dollar on average during the first semester of 2004.
Operating income reached Ch$ 10,135 million, 4.6% over 2003.
Non-operating result was a Ch$ 1,449 million loss, which compares to a Ch$
5,986 million loss in 2003. The former is mainly explained by an income from
exchange differences of Ch$ 1,391 million in 2004, compared to a Ch$ 3,617
million loss in 2003. During 2004 a higher loss in Cristalchile Comunicaciones
(owner of 50% of Metropolis -Intercom) is registered and a lower income in
Envases CMF. The former was partially compensated by higher income in CIECSA
and Vina Santa Rita.
3c. Result in Subsidiaries
Santa Rita's net income reached Ch$ 3,553 million, 23.3% over 2003. In the
local market, prices increased by 10.0% in real terms, while volumes increased
by 9.5%. Sales in this market increased by 20.4% reaching Ch$ 17,383 million.
During the period, export volume sales increased by 6.6%, representsenting
50.2% of total revenues, in the amount of US$ 30.0 million (US$ 26.8 million
in 2003). Operating income reached Ch$4,149 million compared with Ch$ 4,997
million in 2003, fundamentally due to higher costs of musts and a decrease of
the Peso/US$ exchange rate that affects export returns. Santa Rita's average
price in dollars per case for the export market reached US$ 34.1 (US$ 32.4 in
2003), while the average price for the industry was US$ 24.3 per case (US$
23.7 in 2003). Santa Rita had a Ch$ 364 million non-operating income, compared
to a Ch$ 1,385 million loss in
2003, mainly due to a income from exchange differences of Ch$ 965 million
compared with Ch$ 740 million loss in 2003.
Red Televisiva Megavision, CIECSA's main subsidiary, registered a Ch$1,125
million operating income, compared with an Ch$ 814 million operating income in
2003. MEGA reached the first place in audience with an audience viewership
share of 25.4% during the period(1) (22.7% in 2003). Net sales increased by 8.3%
reaching Ch$ 12,341 million, due to an increase in live programming, which has
resulted in higher audience levels. MEGA had an Ch$ 811 million net income
(Ch$ 210 million income in 2003). CIECSA's net income was Ch$ 927 million,
compared to Ch$ 75 million income the previous year.
Envases CMF S.A. registered a Ch$ 298 million net income in 2004 compared with
a Ch$1,226 million net income in 2003. This is mainly explained by the
non-operating result, which during 2003 registered a net income from price
level restatement and exchange differences of Ch$ 435 million, compared to a
Ch$ 205 million loss during the present period. Sales reached Ch$ 14,941
million during the period compared with Ch$ 16,375 million in 2003. Volume
sales decreased by 4.1%, reaching 10,557 tons, due to a decline in pre forms
exports and lower sales of one-way formats; while average prices decreased by
5.1% influenced by the decrease of the Peso/US$ rate of exchange. As a result
the aforementioned operating income reached Ch$ 1,191 million, compared with
Ch$ 1,615 million in 2003.
In the cable TV area, Cristalchile Comunicaciones S.A. (99.99% owned by
Cristalerias), is the owner of 50% of Cordillera Comunicaciones Ltda., which
in turn is the owner of Metropolis-Intercom S.A. During 2004,
Metropolis-Intercom S.A. registered sales of Ch$ 22,186 million, compared with
Ch$ 22,408 million in 2003. Metropolis-Intercom had a net loss of Ch$ 5,962
million, compared with a net loss of Ch$ 4,845 million in 2003. This lower
result is mainly due to a one-time Ch$ 775 million charge, that affects the
non-operating result of the company. Metropolis-Intercom's EBITDA reached
Ch$3,192 million during the period (Ch$ 2,944 million in 2003). The latter
includes a depreciation charge of Ch$ 7,338 million (Ch$ 6,672 million in
2003) corresponding to the HFC network adquired in July 2000. The company
ended the period with 223,820 basic subscribers (237,324 in 2003), 28,970
premium service subscribers (33,440 in 2003), 38,503 broadband internet
subscribers (31,5% over 2003) and 9,255 IP telephony subscribers.
As a result of the above mentioned and a negative goodwill amortization charge
through Cordillera Comunicaciones of Ch$ 2,088 million during the year (Ch$
2,095 million in 2003), Cristalchile Comunicaciones recorded a net loss of Ch$
4,041 million (net loss of Ch$3,468 million in 2003).
INVESTMENTS
On June 23, 2004, Cristalerias de Chile announced that it will invest US$210
million in a development plan that will allow it to duplicate its glass
production installed capacity -from 300 thousand tons per year to 600 thousand
tons per year- and adequately attend the increasing demand of its customers.
The initiative, that would be materialized in a term of up to 10 years, was
approved unanimously by the Board and contemplates materialization in
successive stages, according to market needs.
--------
(1) Measured between 6:30 A.M. and 1:30 A.M. (i.e:19 hours a day) from
Monday through Sunday.
The first stage of the development plan considers the construction of a new
plant, equipped with 4 new fabrication lines and a furnace with production
capacity of 360 tons per day, that supposes USS 110 million investment and
that would be financed by a combination of internal resources and credits.
Start up of operations is scheduled for 2006 and will allow to increase the
present production capacity by 35%.
Following stages of the expansion imply adding 7 fabrication lines and 2
furnaces with production capacities over 400 tons per day.
4. CASH FLOW STATEMENT
As of June 30, 2004 a total net positive flow of Ch$ 5,987 million was
generated, which is explained by a positive flow generated by operating
activities of Ch$ 21,112 million which were partially offset by a negative
financing flow of Ch$ 3,929 million, and a negative flow of investment
activities of Ch$11,196 million.
The operating flow corresponds basically to the collection of sales and
financial interests and other income received that were reduced in part by
payment to suppliers, taxes and interests.
The negative financing flow can be explained mainly by dividends paid of Ch$
3,135 million and loans payments for Ch$ 648 million.
The negative investment flow is mainly explained by the incorporation of fixed
assets of Ch$ 7,253 million, and loans to related companies for Ch$ 3,804
million.
The foregoing results in an increase in the final balance of cash and cash
equivalent, once included the inflationary effect, which passed from Ch$
76,214 million as of December 31, 2003 to Ch$ 82,283 million as of June 30,
2004.
According to the current regulations of the SVS and the Association of
Accountants of Chile A.G., term deposits and agreements with due date less
than 90 days have been considered 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 debts. As of June 30, 2004
Short-Term and Long-Term bank liabilities and obligations with the public
totaled Ch$ 130,028 million, which represents 28% of the Company's
consolidated assets.
Bank loans totaled Ch$ 38,108 million, of which Ch$34,449 million correspond
to credits in foreign currency agreed at variable rates related to the
six-month Libor and 0.8% percentages point per year, Ch$ 2,995 million
correspond to credits in pesos adjustable in unidades de fomento (indexed
currency units) are exposed to changes in the six-month TAB rate and Ch$ 664
million correspond to credits in pesos at an annual rate of 4.94%.
Of total obligations with the public of Ch$ 91,920, Ch$ 71,450 million
correspond to bonds issued by the Company and Ch$ 20,470 millon to bonds
issued by the subsidiary Vina Santa Rita, both a fixed interest rate.
As of June 30, 2004, the Company had funds available of Ch$ 79,946 million
invested in instruments at different tenors like term deposits, bonds,
fixed-rate mutual funds and resale
agreements. Such amount does not includes bonds for a total of Ch$8,539
million with maturity on September 15, 2005 and investments in shares for Ch$
4,188 million.
Currently the Company and its subsidiaries do not use secondary financial
instruments to reduce risk in the event of fluctuations in interest rates.
That policy will be studied permanently to evaluate the alternatives offered
by the market.
b) Exchange rate
The Company and its Subsidiaries maintain liabilities in foreign currency for
the equivalent to US$ 74.1 million, which represents 10.2% of its consolidated
assets, and include a long-term syndicated loan of US$ 50 million in
Cristalchile.
As of June 30 the Company and its Subsidiaries maintain investments in Dollars
of US$ 68.3 million; in time deposits, bonds and fixed rate mutual funds. In
addition it also has investments in EUROS 37.5 million in fixed rate and fixed
rent instruments. Likewise it also has Dollar purchase future contracts of
US$42.6 million which are more than compensated by sale future contracts of
US$ 81.6 million.
On the other hand, aproximately 37.5% of consolidated income is indexed to the
exchange rate variation. At the same time, the consolidated cost in foreign
currency represents aproximately 29.6% of total costs.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GLASSWORKS OF CHILE
(Registrant)
By: /s/ Benito Bustamante C.
-----------------------------------
Benito Bustamante C.
Controller
Date: October 20, 2004