FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of January, 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): ____
FECU (Standardized Quarterly Financial Report)
1. IDENTIFICATION
1.01.05.00 Firm Name 90331000-6
CRISTALERIAS DE CHILE S.A.
1.01.04.00 Company RUT 90331000-6
1.00.01.10 Starting date 1/1/2003
1.00.01.20 Closing date 9/30/2003
1.00.01.30 Type of Currency Chilean Pesos
1.00.01.40 Type of Financial Statements Consolidated
1
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. 09-30-03 09-30-02
5.11.00.00 TOTAL CURRENT ASSETS 171,598,638 182,359,025
5.11.10.10 Cash 1,895,071 35,933,528
5.11.10.20 Time deposits 45 6,923,184 7,214,531
5.11.10.30 Marketable securities (net) 4 64,407,136 12,739,452
5.11.10.40 Debtors from sales (net) 5 40,569,247 37,585,366
5.11.10.50 Documents receivable (net) 4,583,097 5,389,705
5.11.10.60 Sundry debtors (net) 1,552,182 1,021,454
5.11.10.70 Doc. & accts receivable related Co. 6 744,153 463,521
5.11.10.80 Inventories (net) 36,488,666 35,405,869
5.11.10.90 Recoverable taxes 2,681,579 473,437
5.11.20.10 Prepaid expenses 1,388,166 1,079,342
5.11.20.20 Deferred taxes 8 1,432,239 1,650,350
5.11.20.30 Other current assets 10 8,933,918 43,402,470
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 138,675,566 130,156,094
5.12.10.00 Land 12 13,116,753 13,484,070
5.12.20.00 High rises & 2infrastructure 12 61,375,398 55,910,535
5.12.30.00 Machinery & equipment 12 143,565,630 134,964,006
5.12.40.00 Other fixed assets 12 11,325,067 10,638,079
5.12.50.00 Positive goodwill from technical 12
revaluation of fixed assets 6,619,986 8,637,670
5.12.60.00 Depreciation (minus) 12 (97,327,268) (93,478,266)
5.13.00.00 TOTAL OTHER ASSETS 141,508,268 154,220,307
5.13.10.10 Investment in related companies 14 105,659,811 112,855,150
5.13.10.20 Investment in other companies 15 827,235 1,319,838
5.13.10.30 Negative goodwill 16 9,607,498 10,370,837
5.13.10.40 Positive goodwill (minus) 0 0
5.13.10.50 Long-term debtors 227,987 205,277
5.13.10.60 Doc. & accts receivable related Co. 2,898 1,445
5.13.10.65 Long-term deferred taxes 0 0
5.13.10.70 Intangibles 17 11,814,556 11,747,268
5.13.10.80 Amortization (minus) 17 (1,155,149) (969,802)
5.13.10.90 Other 18 14,523,432 18,690,294
5.13.20.10 Long-term leasing contracts (net) 0 0
5.10.00.00 TOTAL ASSETS 451,782,472 466,735,426
2
LIABILITIES
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance: Consolidated
LIABILITIES NOTE No. 09-30-03 09-30-02
5.21.00.00 TOTAL CURRENT LIABILITIES 44,961,116 66,493,915
5.21.10.10 Short-term oblig. Banks & Fin. Inst. 150,898 1,117,114
5.21.10.20 Short-term portion - Long-term
oblig. Banks & Financial Institutions 19 3,872,025 26,076,767
5.21.10.30 Obligations with the public (notes) 0 0
5.21.20.40 Short-term portion oblig with public 22 1,141,520 1,573,197
5.21.10.50 Long-term oblig. due within 1 year 199,278 174,657
5.21.10.60 Dividends payable 505,634 552,853
5.21.10.70 Accounts payable 12,024,602 13,313,141
5.21.10.80 Notes payable 2,463,212 1,758,273
5.21.10.90 Sundry creditors 1,048,744 2,022,423
5.21.20.10 Notes & accts payable related Co. 836,988 775,446
5.21.20.20 Provisions 23 9,664,291 12,761,878
5.21.20.30 Withholdings 3,078,707 2,485,669
5.21.20.40 Income tax 0 1,046,016
5.21.20.50 Unearned income 4,919,157 2,836,481
5.21.20.60 Deferred taxes 0 0
5.21.20.70 Other current liabilities 20 5,056,060 0
5.22.00.00 TOTAL LONG-TERM LIABILITIES 141,794,267 127,777,544
5.22.10.00 Oblig with Banks & Financial Inst. 21 39,280,665 25,935,450
5.22.20.00 Long-term oblig with public (bonds) 22 89,813,959 89,740,797
5.22.30.00 Long-term notes payable 0 160,083
5.22.40.00 Long-term sundry debtors 360,523 3,261,714
5.22.50.00 Long-term notes & accts. payable
related companies 0 0
5.22.60.00 Long-term provisions 23 7,623,385 5,444,154
5.22.70.00 Long-term deferred taxes 8 4,715,735 3,235,346
5.22.80.00 Other long-term liabilities 0 0
5.23.00.00 MINORITY INTEREST 26 37,647,535 36,694,923
5.24.00.00 TOTAL EQUITY 227,379,554 235,769,044
5.24.10.00 Paid-in capital 27 64,749,257 64,686,393
5.24.20.00 Reserve capital revaluation 27 776,991 840,924
5.24.30.00 Premium in sale of own shares 27 27,929,574 27,930,030
5.24.40.00 Other reserves 27 8,112,383 11,561,262
5.24.50.00 Retained earnings (addition of codes
5.24.51.00 to 5.24.56.00) 125,811,349 130,750,435
5.24.51.00 Reserve future dividends 124,356,319 116,289,293
5.24.52.00 Accrued profits 0 0
5.24.53.00 Accrued losses (minus) 0 0
5.24.54.00 Profit (loss) for the year 27 2,415,990 16,447,688
5.24.55.00 Prov. dividends (minus) 27 (960,960) (1,986,546)
5.24.56.00 Accr. deficit dev. period 0 0
5.20.00.00 TOTAL LIABILITIES 451,782,472 466,735,426
3
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. 09-30-03 09-30-02
5.31.11.00 OPERATING INCOME 27,107,013 30,178,087
5.31.11.10 Gross Margin 45,539,906 48,169,042
5.31.11.11 Sales 123,647,646 116,809,410
5.31.11.12 Costs (minus) (78,107,740) (68,640,368)
5.31.11.20 Adm. & sales expenses (minus) (18,432,893) (17,990,955)
5.31.12.00 NON-OPERATING RESULTS (21,364,434) (4,340,377)
5.31.12.10 Interest income 2,181,678 1,942,920
5.31.12.20 Income investments Rel. Co. 14 1,551,714 295,218
5.31.12.30 Other non-operating income 28 553,447 859,482
5.31.12.40 Loss investments Rel. Co. (-) (5,510,961) (9,719,807)
5.31.12.50 Amortization neg.goodwill (-) (463,901) (475,197)
5.31.12.60 Interest expenses (minus) (5,179,610) (4,630,550)
5.31.12.70 Other non-operat expenses (-) 28 (1,521,725) (2,692,423)
5.31.12.80 Price level restatement 29 (705,670) (1,581,501)
5.31.12.90 Exchange differences 30 (12,269,406) 11,661,481
5.31.10.00 RESULTS BEFORE INCOME TAX
AND EXTRAORDINARY ITEMS 5,742,579 25,837,710
5.31.20.00 INCOME TAX 8 (1,589,839) (5,281,853)
5.31.30.00 EXTRAORDINARY ITEMS 0 0
5.31.40.00 PROFIT (LOSS) BEFORE
MINORITY INTEREST 4,152,740 20,555,857
5.31.50.00 MINORITY INTEREST 26 (1,736,750) (4,108,169)
5.31.00.00 NET INCOME (LOSS) 2,415,990 16,447,688
5.32.00.00 Amortization of positive goodwill 0 0
5.30.00.00 INCOME (LOSS) FOR THE YEAR 2,415,990 16,447,688
4
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. 09-30-03 09-30-02
5.41.11.00 NET FLOW FROM OPERATING ACTIVITIES 26,444,302 38,097,002
5.41.11.10 Collection from sales debtors 151,561,796 137,803,874
5.41.11.20 Interests received 2,819,335 8,523,979
5.41.11.30 Dividends & other distributions funds received 162,892 191,653
5.41.11.40 Other income 33 2,751,987 2,388,300
5.41.11.50 Payments to suppliers & personnel (-) (107,971,752) (93,642,830)
5.41.11.60 Interest paid (minus) (5,623,361) (3,118,260)
5.41.11.70 Income tax paid (minus) (3,813,455) (2,319,854)
5.41.11.80 Other expenses (minus) 33 (6,066,363) (1,509,759)
5.41.11.90 V.A.T. & other taxes (minus) (7,376,777) (10,220,101)
5.41.12.00 CASH FLOW FINANCING ACTIVITIES (11,957,348) 15,579,131
5.41.12.05 Proceeds from share issue 0 0
5.41.12.10 Loans received 133,113 71,952
5.41.12.15 Obligations with the public 0 69,273,018
5.41.12.20 Secured loans from related companies 93,663 88,963
5.41.12.25 Other loans from related companies 0 0
5.41.12.30 Other financing resources 0 0
5.41.12.35 Dividends paid (minus) (9,030,801) (8,306,949)
5.41.12.40 Capital distributions (minus) 0 0
5.41.12.45 Repayment of loans (minus) (2,104,400) (41,107,149)
5.41.12.50 Payment of obligations with the public (-) (212,852) (211,529)
5.41.12.55 Repayment of secured loans from rel Co.(-) (76,667) (309,113)
5.41.12.60 Repayment other loans from related Co.(-) 0 (38,619)
5.41.12.65 Share issue payment (minus) 0 0
5.41.12.70 Payment of issue publ oblig (minus) 0 (3,881,443)
5.41.12.75 Other financing payments (minus) 33 (759,404) 0
5.41.13.00 CASH FLOW FROM INVESTING ACTIVITIES (28,602,615) (3,215,795)
5.41.13.05 Sale of fixed assets 314,910 94,003
5.41.13.10 Sale of permanent investments 0 1,398
5.41.13.15 Sale of other investments 33 308,240 11,496,549
5.41.13.20 Proceeds secured loans to related Comp. 0 0
5.41.13.25 Proceeds other loans to related companies 1,940,110 45,754
5.41.13.30 Other investment income 33 2,261,336 4,634,901
5.41.13.35 Incorporation of fixed assets (minus) (23,203,964) (11,719,876)
5.41.13.40 Capitalized interests payment (minus) 0 0
5.41.13.45 Permanent Investments (minus) (3,932,925) (5,004,625)
5.41.13.50 Investments in financial instruments (minus) (69,214) (1,609,915)
5.41.13.55 Other loans to related companies (minus) 0 0
5.41.13.60 Other loans to related companies (minus) (8,937) (28,669)
5.41.13.65 Other distrib of funds on invest activities (-) 33 (6,212,171) (1,125,315)
5.41.00.00 TOTAL NET CASH FLOW FOR THE PERIOD (14,115,661) 50,460,338
5.42.20.00 EFFECT OF INFLATION ON CASH & CASH EQUIV. (2,386,739) 226,153
5.41.00.00 NET CHANGE IN & CASH EQUIVALENT (16,502,400) 50,686,491
5.42.00.00 CASH & CASH EQUI AT BEGINNING OF PERIOD 94,415,355 39,376,324
5.43.00.00 CASH & CASH EQUIV BALANCE AT END OF PERIOD 77,912,955 90,062,815
5
INCOME STATEMENT RECONCILIATION
CONCILIATION BETWEEN CASH FLOW GENERATED BY THE OPERATION'S ACTIVITIES AND THE
INCOME STATEMENT FOR THE YEAR
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance: Consolidated
CASH FLOW - INCOME STATEMENT RECONCILIATION NOTE No. 09-30-03 09-30-02
5.50.10.00 Profit (Loss) for the year 2,415,990 16,447,688
5.50.20.00 Profit (Loss) in sale of assets 78,055 29,101
5.50.20.10 (Profit) Loss in sale of fixed assets 78,055 29,101
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) 27,433,181 19,526,968
5.50.30.05 Depreciation for the year 12 10,891,513 10,261,009
5.50.30.10 Amortization of intangibles 937,368 1,410,846
5.50.30.15 Write-offs and provisions 1,198,846 4,901,189
5.50.30.20 Accrued earnings from investments in related
companies (minus) (1,551,714) (295,218)
5.50.30.25 Accured losses from investments in related Co. 5,510,961 9,719,807
5.50.30.30 Negative goodwill amortization 463,901 475,197
5.50.30.35 Positive goodwill amortization (minus) 0 0
5.50.30.40 Price level restatement 29 705,670 1,581,502
5.50.30.45 Net exchange difference 30 12,269,406 (11,661,481)
5.50.30.50 Other non-cash credits to results (minus) (305,063) (963,032)
5.50.30.55 Other non-cash debits to results (2,687,707) 4,097,149
5.50.40.00 Changes in Assets affecting cash flow (incr) decreases (25,375,503) (31,615,089)
5.50.40.10 Debtors from sales (19,246,173) (22,803,624)
5.50.40.20 Inventory (5,701,251) (6,755,732)
5.50.40.30 Other assets (428,079) (2,055,733)
5.50.50.00 Changes in liabilities affecting cash flow increases (decr) 20,155,829 29,600,165
5.50.50.10 Accounts payable related to results for the year 21,478,762 26,810,368
5.50.50.20 Interests payable (901,088) 1,096,130
5.50.50.30 Income tax payable (net) (360,022) 2,460,116
5.50.50.40 Other accounts payable related to non-oper results 49,180 (316,175)
5.50.50.50 VAT and other taxes payable (net) (111,003) (450,274)
5.50.60.00 Profit (Loss) of minority interest 26 1,736,750 4,108,169
5.50.00.00 NET OPERATING CASH FLOW 26,444,302 38,097,002
6
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 is
supervised by the Securities and Insurance Commission.
The subsidiary S.A. Vina Santa Rita is registered in the Securities Register
under number 390 of the S.V.S. (Securities and Insurance Commission).
7
02. Applied Accounting Criteria
APPLIED ACCOUNTING CRITERIA
a) Accounting Period
These financial statements correspond to the period between January 1 and
September 30 of 2003 and 2002.
b) Preparation basis of financial statements:
These consolidated financial statements as of September 30, 2003 and 2002 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 2002 fiscal year are presented updated according to
non-accounting terms as of September 30, 2003 by 2.9%.
d) Consolidation Basis
The consolidated financial statements include the balances of the following
subsidiaries: Cristalchile Comunicaciones S.A., Cristalchile Inversiones S.A.,
Ciecsa S.A. consolidated, S.A. Vina Santa Rita consolidated, and Constructora
Apoger S.A. consolidated.
The company Ciecsa consolidated includes the balances of its subsidiary Red
Televisiva Megavision S.A. in which it has a 99.99% stake of its net worth and
Simetral S.A. 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 , and Vina Centenaria
S.A., with 99.9% stake.
Constructora Apoger S.A. includes the balances of its subsidiary Inmobiliaria
Monte Azul S.A., in which it has a 99% stake.
Intercompany balances and efects of transactions were eliminated in the
consolidation and the participation of minority investors has been recognized
presented in the balance 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 during the fiscal year 2003,
which was 1.2% (1.3% in 2002).
f) Conversion Basis
Balances in foreign currency and indexed currency units have been converted to
pesos at the indicated parities:
8
2003 2002
Ch$ Ch$
U.S. Dollar 660.97 748.73
Pound Sterling 1,099.23 1,173.19
Swedish Crown 501.76 506.96
EURO 770.81 738.39
Unidad de Fomento 16,946.03 16,455.03
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
September 30, 2003.
Investments in shares are shown at the lowest value between the corrected cost
and market value.
Time deposits are shown at the value of the investment, plus adjustments and
interest accrued as of the date of the fiscal year.
Investments carried out by the parent company in Celulosa Arauco bonds are
registered on the long term under the item Others, presented at their
investment value plus interests accrued at the date of the fiscal year,
without adjusting to market value because there is the intention of keeping
them until their maturity.
h) Inventory
Inventory of finished products has been valued as of September 30, 2003 and
2002 at the direct production cost, duly updated, and raw materials and
materials at the cost of the last purchase or its corrected cost. Those
valuations do not exceed the net liquidation value.
Inventory of foreign television programs to be exhibited are valued at the
purchase cost at the exchange rate in effect at the closing of the fiscal
year. Local programs are valued according to the terms of the respective
contracts.
Programs inventories at the closing of each fiscal year represent the value of
the films and videos contracted and the proportion of repeats that are pending
exhibition. The actual cost of the programs is charged to results as they are
broadcasted.
i) Bad Debts (Uncollectables)
The parent company and subsidiaries have made provision for bad debts that is
deducted from debtors for sales and documents receivable. The criterion
adopted to estimate them is the age of the balances.
j) Fixed Assets
The property in fixed assets is shown at the purchase cost plus legal and
regulatory revaluations accumulated until September 30, 2003 and 2002.
k) Depreciation of Fixed Assets
9
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 on Leasing
None.
m) Sales Transactions with Leaseback
None.
n) Intangibles
The corrected purchase value of trademarks of the subsidiary S.A. Vina Santa
Rita which includes inscription costs are presented as intangibles. The
subsidiary CIECSA consolidated includes chanel 9 TV frequency, which has an
amortization period of 40 years, and the amortization method is the one of
"Increasing Digits".
o) Investments in Related Companies
Investments in shares and rights in related companies have been valued
according to the participation percentage that corresponds to the Company in
the equity of its affiliates and subsidiaries (V.P.P.), according to
procedures established for these purposes by circular 368 of the Securities
and Insurance Commission. Investments abroad have been valued according to the
provisions of Technical Bulletin No. 64 of the Accountants Association.
p) Goodwill Amortization
Goodwill amortization resulted from comparing the price paid for the
investment with the proportional equity value (VPP) that corresponds to the
investment in the company's equity.
Amortizations of these values are carried out in a period of twenty years.
As of September 30, 2003 and 2002 there is no positive goodwill.
q) Operations with repurchase and resale agreement
Financial instruments acquired with a resale agreement are shown at their
purchase value plus interest and adjustments accrued at the closing of the
fiscal year, and they are classified in Other Current Assets, in the terms
established in Circular No. 768 of the Securities and Insurance Commission.
r) Obligations with the public
Obligations for bonds issued are shown at their face value plus adjustments
and interest accrued at the closing of each fiscal year. The negative goodwill
obtained compared to par value is amortized proportionally to payment or
redemption of the capital installments of those bonds and the expenses for the
placement of long-term bonds.
10
s) Deferred Taxes and Income Tax
The parent company and its subsidiaries has complied with deferred taxes, in
accounting terms, as established in Technical Bulletin No. 60 and 71 of The
Accountants Association and the norms indicated in circular 1466 of the S.V.S.
Income tax is recorded in the accounting on the basis of the calculation of
net taxable income determined according to norms established in the Income Tax
Law.
t) Severance payment
The parent company has established a reserve for all of the personnel's
severance payment, according to the union contracts signed with their workers.
This reserve is shown at the present value of the obligation.
u) Sales
The consolidated companies recognize operating income on an accrued basis
according to accounting principles generally accepted in Chile.
v) Derivative Contracts
The parent company and its subsidiaries Ciecsa S.A. and S.A. Vina Santa Rita
maintain Future contracts in foreign currency recorded as established in
Technical Bulletin 57 of the Accountants Association of Chile.
w) Computer Software
The parent company and S.A. Vina Santa Rita develop computer software with
their own resources and they also acquire computer packages from third
parties. Development disbursements are charged to results as they are
generated. Computer packages are recorded in Fixed Assets and amortized in 36
months by the parent company and in 48 months by the subsidiary S.A. Vina
Santa Rita.
x) Research and development expenses
The companies register expenses for this item directly in results as they are
generated.
y) Cash flow statement:
According to current regulations of the Securities and Insurance Commission
and the Accountants Association of Chile, in preparing the cash flow
statement, the Company has considered time deposits, fixed rate mutual funds
investments and agreements 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 that is not defined as
investment or Financing is included under the heading "Flow Originating in
Activities of the Operation."
Disbursements originating in time deposits and deposits with maturities over
90 days have been classified in the item "Investments in Financial
Instruments."
11
CRISTALERIAS DE CHILE S.A.
NOTE 2 - ACCOUNTING CRITERIA USED - COMPANIES INCLUDED IN THE CONSOLIDATED
REPORT
Percentage of Shareholding
R.U.T. Company Name 09.30.2003 09.30.2002
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
12
03. Accounting Changes
As of September 30, 2003 and 2002, there have not been any changes in the
accounting criteria applied that affect the consolidated financial statements.
13
04. Marketable Securities
As of September 30, 2003, this item is composed by the following investments:
a) Investments in bonds, Fixed Fate Instruments, mainly corresponding
to investments in state bonds and bonds from financial institutions
in USA, Germany, Holland; Collateralized Bonds of Private Companies
in USA (with accounts receivable guarantee) and USA Mortgage Bonds
with state guarantee are included in the amount of Th Ch$
51,487,181.
b) Th Ch$ 4,163,102 in shares.
c) Th Ch$ 8,756,853 in fixed rate investment funds in US$.
As of September 30, 2002, Th Ch$ 3,776,725 were included in investments in
shares, Th Ch$ 8,903,062 in fixed rate mutual funds in Dollars, Th Ch$ 29,724
in mutual funds in chilean pesos and Th Ch$ 29,941 for accrued interests of
long-term bonds.
CRISTALERIAS DE CHILE S.A.
NOTE 4 -MARKETABLE SECURITIES- BALANCE COMPOSITION
Type of Security Book Value
09-30-2003 09-30-2002
Shares 4,163,102 3,776,725
Bonds 51,487,181 29,941
Shares of mutual funds 0 0
Shares of investment funds 8,756,853 8,932,786
Public tender notes 0 0
Mortgage bonds 0 0
Total Marketable Securities 64,407,136 12,739,452
14
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 95 6,071,528 4,163,102
Value Investment Portfolio 6,071,528 4,163,102
Adjustment Provision 0
Book value, Investment Portfolio 4,163,102
15
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - FIXED RATE
INSTRUMENTS
Type of Security Par Book Value Market Reserve
Value Amount Rate %(3) Value
Financial Institutions bonds (USA, Germany and Holland) 24,044,544 24,044,544 5.90 24,044,544 0
US treasury bonds 13,584,553 13,584,553 1.26 13,584,553 0
Mortgage bonds USA, with state guarante 13,359,571 13,359,571 1.26 13,359,571 0
Call Deposit 806,753 806,753 5.85 806,753 0
BBH U.S. Money Market Portfolio 8,448,613 8,448,613 0.00 8,448,613 0
TOTAL 60,244,034 60,244,034 - 60,244,034 -
Note:
(1) The investements has been made in U.S. Dollars (78.8%) and EUROS
(21.2%) these are on custody abroad.
(2) These investments can be recovered within 48 hrs. warning.
(3) Rate of period from 01-01-2003 to 09-30-2003.
16
05. Short-Term and Long-Term Debtors
As of September 30, 2003, there are balances short-term debtors in the amount
of Th $46,704,526 (Th $ 43,996,525 in 2002).
As of September 30, 2003, there is a bad debt reserve of Th $ 738,465 in 2003
(Th $699,826 in 2002), presented 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 $ 227,987 in Long Term Debtors in 2003
(Th $ 205,277 in 2002).
17
CRISTALERIAS DE CHILE S.A.
NOTE 5 - SHORT AND LONG TERM DEBTORS
Current Assets
Item Over 90 days Long Term
Up to 90 days up to 1 year Subtotal Total Current (net)
09-30-2003 09-30-2002 09-30-2003 09-30-2002 09-30-2003 09-30-2002 09-30-2003 09-30-2002
Debts from Sales 38,383,144 36,204,307 2,690,393 1,896,975 41,073,537 40,569,247 37,585,366 0 0
Estimate of bad debtors - - - - 504,290 - - - -
Documents receivable 4,697,318 5,516,584 119,954 57,031 4,817,272 4,583,097 5,389,705 0 0
Estimate of bad debtors - - - - 234,175 - - - -
Misc. Debtors 1,520,222 979,543 31,960 41,911 1,552,182 1,552,182 1,021,454 227,987 205,277
Estimate of bad debtors - - - - - - - - -
Total Long Term Debtors 227,987 205,277
18
06. Balances and Transactions with related parties
a) BALANCES RECEIVABLE
Balances receivable in the Short-Term as of September 30, 2003 total Th Ch$
744,153 (Th Ch$ 463,521 in 2002) and correspond mainly to a loan granted by
the subsidiary Ciecsa to Editorial Zig Zag for Th Ch$ 163,532 including
interests, with maturity on 06-30-2004 at an annual interest rate of 1% and
advertising sold by Red Televisiva Megavision S.A. to Metropolis Intercom for
Th Ch$109,576. The balance corresponds to invoicing receivable for Th Ch$
471,045 (Th Ch$ 177,604 in 2002).
b) BALANCES PAYABLE
Balances payable in the short term totaling Th Ch$ 836,988 at September 30,
2003 (Th Ch$ 775,446 in 2002) mainly correspond to commercial transactions
under 90 days for Th Ch $ 336,410 (Th Ch$ 260,351 in 2002) and dividends
payable to Majority shareholders for Th Ch$ 500,578 (Th Ch$ 515,095 in 2002).
In 2003 there is a long-term receivable balance corresponding to invoices
totaling Ch Th$ 2,898 (Ch Th$ 1,445 in 2002).
19
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
09-30-2003 09-30-2002 09-30-2003 09-30-2002
89.150.900-6 Vina Los Vascos S.A. 144,726 146,578 0 0
0-E Rayen Cura SAIC 245,083 0 0 0
83.032.100-4 Serv. Y Consultorias Hendaya S.A. 1,977 0 0 0
90.684.000-6 Editorial Zig-Zag S.A. 163,532 236,377 0 0
86.881.400-4 Envases CMF S.A. 50,671 4,913 0 0
90.320.000-6 Cia. Electro Metalurgica S.A. 0 190 0 0
96.539.380-3 Ediciones Financieras S.A. 0 0 0 0
79.753.810-8 Claro y Cia. 651 140 0 0
96.787.775-1 Metropolis Intercom S.A. 109,576 49,540 0 0
90.160.000-7 Sudamericana de Vapores S.A. 27,937 25,783 0 0
77658870-9 Marketing Meter Ltda. 0 0 0 0
96793770-3 Ediciones Chiloe S.A. 0 0 2,898 1,445
86963200-7 Forus S.A. 0 0 0 0
Total 744,153 463,521 2,898 1,445
20
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
09-30-2003 09-30-2002 09-30-2003 09-30-2002
90.320.000-6 Cia. Electro Metalurgica S.A. 328,946 338,485 0 0
83.032.100-4 Serv. Y Consultorias Hendaya S.A. 110,773 87,661 0 0
89.150.900-6 Vina Los Vascos S.A. 8,814 14,323 0 0
79.753.810-8 Claro y Cia. 61,356 10,044 0 0
96.539.380-3 Ediciones Financieras S.A. 101 1,853 0 0
86.881.400-4 Envases CMF S.A. 220,381 215,228 0 0
90.160.000-7 Cia. Sudamericana de Vapores S.A. 9,683 8,754 0 0
96.787.750-6 Metropolis Intercom S.A. 8,246 0 0 0
86.755.600-1 Inversiones Bayona S.A. 88,688 91,260 0 0
77.658.870-9 Marketing Meter Ltda. 0 7,838 0 0
Total 836,988 775,446 0 0
21
CRISTALERIAS DE CHILE S.A. NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED
COMPANIES
TRANSACTIONS
Company R.U.T. Relationship Description of Transaction
Serv. Y Consultorias Hendaya S.A. 83.032.100-4 Majority shareholder Services received
- Dividends paid
- Services supplied
Majority shareholder Products sold
- Services rendered
Claro y Cia. 79.753.810-8 With the Chairman Advice received
- Products sold
Quemchi S.A. 96.640.360-8 Same Parent Services rendered
Rayen Cura S.A.I.C. 0-E Indirect affiliate Direct sales
Navarino S.A. 96.566.900-0 Same Parent Services supplied
Cia. Sud-Americana de Vapores S.A. 90.160.000-7 Same Parent Product sold
- Freight services received
- Other sales
Ediciones Financieras S.A. 96.793.77-3 Indirect affiliate Services received
- Products sold
- Services purchased
- Advertising
Vina Los Vascos S.A. 89.150.900-6 Indirect affiliate Direct sales
- Materials purchased
Inversiones Bayona S.A. 86.755.600-1 Majority shareholder Dividends paid
Forus S.A. 86.963.200-7 Affiliate Advertising hired
- Services purchased
Carmen Luz Sanchez Guzman 5781266-4 Indirect Raw Material Purchased
Cia. Electro Metalurgica S.A. 90.320.000-6 Majority shareholder Dividends paid
- Payment Made for own Account
- Product sold
- Materials purchased
Metropolis Intercom S.A. 96.787.750-6 Indirect affiliate Advertising services
- Other sales
- Products sold
- Advertising hired
Soc Agric. Cullipeumo Ltda. 77489-K Indirect Raw Material Purchased
Envases CMF S.A. 86.881.400-4 Indirect affiliate Materials purchased
- Other sales
- Products sold
Editorial Televisa de Chile S.A. 93.585.000-2 Affiliate Services purchased
Cordillera Comunicaciones Ltda. 78.619.370-2 Affiliate Transmission rights
CRISTALERIAS DE CHILE S.A. NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED
COMPANIES
TRANSACTIONS 09-30-2003 09-30-2002
Company Amount Effect on Result Amount Effect on Result
Serv. Y Consultorias Hendaya S.A. 980,575 -980,575 971,887 -971,887
694,870 0 649,275 0
15,709 15,709 14,928 14,928
203 63 172 57
28,888 -28,888 42,733 -42,733
Claro y Cia. 153,836 -153,836 152,020 -152,020
443 134 610 203
Quemchi S.A. 8,215 8,215 7,541 7,541
Rayen Cura S.A.I.C. 435,591 135,177 188 0
Navarino S.A. 7,586 7,586 7,541 7,541
Cia. Sud-Americana de Vapores S.A. 26,850 10,779 26,334 8,727
223,578 -36,009 43,553 -30,933
3,036 0 27,440 27,440
Ediciones Financieras S.A. 3,748 -3,748 0 0
4,073 1,262 0 0
304 -304 0 0
22,309 -22,309 0 0
Vina Los Vascos S.A. 307,151 79,590 391,165 108,484
29,177 0 16,709 0
Inversiones Bayona S.A. 723,399 0 584,673 0
Forus S.A. 184,900 184,900 80,814 80,814
0 0 2,095 -2,095
Carmen Luz Sanchez Guzman 38,358 0 0 0
Cia. Electro Metalurgica S.A. 2,664,783 0 2,489,931 0
280 0 0 0
1,029 671 0 0
3,585 0 1,808 0
Metropolis Intercom S.A. 11,420 -11,420 19,387 -19,387
23,778 7,371 45 0
3,478 3,478 5,010 1,667
204,193 204,055 237,321 237,321
Soc Agric. Cullipeumo Ltda. 40,468 0 0 0
Envases CMF S.A. 458,899 0 363,933 0
137 0 0 0
55,925 17,334 145 48
Editorial Televisa de Chile S.A. 0 0 35 -35
Cordillera Comunicaciones Ltda. 0 0 220,149 0
22
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)
2003 2002
Th Ch$ Th Ch$
Finished Products
* Cristalerias de Chile S.A. 2,680,271 2,492,461
* S.A. Vina Santa Rita 5,483,551 6,273,148
Subtotal Finished Products 8,163,822 8,765,609
Raw Materials and Fuel
* Cristalerias de Chile S.A. 1,635,413 1,659,258
* S.A. Vina Santa Rita 21,278,426 18,308,076
Subtotal Raw Materials and Fuel 22,913,839 19,967,334
Supply Materials and Parts
* Cristalerias de Chile S.A. 1,041,451 1,149,005
* S.A. Vina Santa Rita 1,083,428 1,393,424
Subtotal Supply Materials and Parts 2,124,879 2,542,429
Materials in Transit 361,011 348,294
Red Televisiva Megavision S.A. (CIECSA S.A.)
* Foreign, taped, for broadcast 2,477,925 3,664,438
* Domestic programming, to be broadcast 447,190 117,765
Subtotal Red Televisiva Megavision S.A. 2,925,115 3,782,203
Total 36,488,666 35,405,869
23
08. Deferred taxes and income taxes
A) DEFERRED TAXES.
Accumulated balances of deferred taxes for temporary differences, and their
composition in the income tax account for effects of fiscal year results and
recognition of deferred taxes, are presented on the attached charts.
Amortization periods of deferred taxes have been estimated on average at 1
years for Short-Term Assets, 5 years for Long-Term Assets, and 14.4 years for
Long-term Liabilities.
B) INCOME TAX
The parent company and its subsidiary S.A. Vina Santa Rita, made tax
provisions of 16.5% of taxable income in 2003 (16% in 2002) subject to the
First Category, in addition to a 35% Income Tax under Art. 21, for the 2003
and 2002 fiscal years.
Credits against taxes are shown deducting the payable obligation.
The itemized list is the following:
2003 2002
Th Ch$ Th Ch$
Fiscal year income tax reserve (1,274,019) (4,408,275)
Single tax reserve (8,032) (7,116)
---------- ----------
SUB TOTAL (1,282,051) (4,415,391)
Credits:
Monthly reserve payments 3,337,843 3,254,028
Training expenditures 68,535 74,051
Fixed Assets credit 32,032 6,131
Donations 9,739 35,165
---------- ----------
CREDIT SUB TOTAL 3,448,149 3,369,375
Income Tax 2,166,098 (1,046,016)
Income Tax to be Recovered 14,253 240,469
Other Taxes to be recovered:
VAT Fiscal Credit 268,855 232,968
Income tax credit, previous year 232,373 0
TOTAL TAXES TO BE ________ _________
RECOVERED 2,681,579 473,437
24
C) TAXABLE PROFIT FUND
The parent company registered the following balance of profits to be
distributed:
2003 Th Ch$ 2002 Th Ch$
Generated as of 12.31.1983:
Profits adjustment 1,924,782 1,924,782
Generated since 01.01.1984:
Without Credit 1,075,346 1,048,220
With 10% First Category Credit 22,761 82,751
With 15% First category Credit 86,254,956 95,265,496
With 15% Additional rate Credit 724 746
With 16% First Category Credit 16,173,816 15,904,716
With 16.5% First Category Credit 4,113,428 0
----------- -----------
SUB-TOTAL TAX PROFITS 107,641,031 112,301,929
Non-income revenues 6,845,657 6,850,759
---------- ----------
TOTAL RETAINED EARNINGS 114,486,688 119,152,688
25
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
DEFERRED TAXES 09-30-2003
Item Asset Deferred Tax Liability Deferred Tax
Short term Long Term Short Term Long Term
Temporary Differences
Reserve non-collectable accounts 124,823 0 0 0
Prepaid Income 836,257 0 0 0
Vacation provision 165,363 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 8,473,752
Severance payments 1,756 145,219 0 0
Other events 0 0 0 0
Packaging reserve 193,613 0 0 0
Furnace repair provision 0 580,543 0 0
Stock obsolescence provision 88,876 0 0 0
Spare parts obsolescence provision 97,303 0 0 0
Lower value sale of bonds 80,518 0 53,281 780,960
Deferred customs duties 0 0 0 1,959
Non realized profits 228,159 6,991 0 0
Other provisions 20,972 0 0 0
Direct labor 21,502 0 0 0
Automobiles Accumulated Depreciation 0 16,598 0 80,552
Tax losses 0 3,965,797 0 0
Goodwill bonds placement 0 0 0 0
Prepaid expenses 0 0 36,420 0
Banking reserve 0 0 0 41,685
Fixed assets, molds 0 0 0 264,005
Commercial brands 37,772 0 0 0
Amortization commercial brands 0 0 0 0
Expenses assetted 50,004 0 260,500 0
Supplementary accounts-net of amort. 164,478 3,288,705 0 3,500,735
Valuation provision 0 0
Total 1,782,440 1,426,443 350,201 6,142,178
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
DEFERRED TAXES 09-30-2002
Item Asset Deferred Tax Liability Deferred Tax
Short term Long Term Short Term Long Term
Temporary Differences
Reserve non-collectable accounts 114,099 0 0 0
Prepaid Income 482,202 0 0 0
Vacation provision 156,780 0 0 0
Intangible Amortization 0 0 0 0
Leased assets 0 0 0 0
Manufacturing expenses 0 0 0 0
Depreciations fixed assets 0 0 0 7,993,430
Severance payments 1,745 33,149 0 0
Other events 0 0 15,652 1,048
Packaging reserve 212,577 0 0 0
Furnace repair provision 260,577 262,273 0 0
Stock obsolescence provision 60,652 0 0 0
Spare parts obsolescence provision 97,404 0 0 0
Lower value sale of bonds 54,052 0 0 0
Deferred customs duties 21,369 0 0 157,849
Non realized profits 183,698 2,453 0 0
Other provisions 160,945 102,934 0 0
Direct labor 8,922 0 0 0
Automobiles Accumulated Depreciation 0 12,489 0 0
Tax losses 0 5,054,789 0 0
Goodwill bonds placement 0 0 52,608 215,354
Prepaid expenses 0 0 29,522 8,248
Banking reserve 9,951 0 0 0
Fixed assets, molds 0 0 0 239,565
Commercial brands 0 0 0 0
Amortization commercial brands 285,166 0 0 0
Expenses assetted 0 0 197,445 0
Supplementary accounts-net of amort. 164,562 4,262,534 0 4,174,595
Valuation provision 0 0
Total 1,945,577 1,205,553 295,227 4,440,899
26
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
INCOME TAX
09/30/2003 09/30/2002
Th Ch$ Th Ch$
Current tax expense (tax provision) -1,282,051 -4,415,391
Adjustment tax expense (previous year) 0 0
Effects from assets or liabilities, deferred year's tax -410,555 -1,061,497
Tax benefit from tax losses 461 0
Effect of amortiz. of supplementary accounts for deferred assets and liabilities 102,306 0
Effect on assets or liabilities from deferred tax from changes in assessment provision 0 0
Other charges or credits to the account 139 240
Total -1,589,839 -5,281,853
27
09. Short and Long-term Leasing Contracts and Assets for Leasing
As of September 30, 2003, balances are not included under this heading.
28
10. Other current assets
As of September 30, 2003, included under this item are investment in:
a) Financial instruments with resale agreement for Th Ch$ 8,542,425
valued as expressed by note 2 q).
b) Deferred expenses for bonds placement for Th Ch$ 363,500.
c) Th Ch$27,993 for cash reserve.
As of September 30, 2002, there were investments in:
a) Financial instruments with resale agreement for Th Ch$ 37,952,029
valued as expressed by note 2 q).
b) Deferred expenses for bonds
placement for Th Ch$367,919.
c) Th Ch$ 28,755 for cash reserve.
d) Balance in favor of Th Ch$ 5,053,767 for Future Contracts in foreign
currency.
29
11. Information on operations involving purchase agreements, sales
agreements, sale with repurchase agreement, and purchase with resale
agreement of titles or real estate securities
Information about these transactions is presented in attached charts.
30
NOTE 11 - INFORMATION ON OPERATIONS WITH PURCHASE COMMITMENT, SALE COMMITMENT,
SALE WITH REPURCHASE AGREEMENTS AND PURCHASE WITH RESALE AGREEMENTS OPERATIONS
OF TITLES AND REAL ESTATE SECURITIES
SALE OPERATIONS WITH REPURCHASE COMMITMENT (VRC) AND PURCHASE OPERATIONS WITH
RESALE COMMITMENT (CRV)
Code Dates Counterpart Original
Start End Currency
CRV 09.30.2003 10.01.2003 Banco BCI Corredores de Bolsa Pesos
CRV 09.30.2003 10.01.2003 Banchile Dollars
CRV 07.14.2003 10.03.2003 Banco Santander Santiago Pesos
CRV 08.13.2003 10.06.2003 Banco Santander Santiago Pesos
CRV 08.13.2003 10.27.2003 Banco Santander Santiago Pesos
CRV 09.25.2003 11.10.2003 Banco Santander Santiago Pesos
CRV 09.25.2003 11.05.2003 Banco Santander Santiago Pesos
CRV 09.25.2003 11.24.2003 Banco Santander Santiago Pesos
CRV 07.29.2003 10.24.2003 Scotiabank Sud Americano Dollars
CRV 09.25.2003 11.21.2003 Scotiabank Sud Americano Dollars
CRV 09.30.2003 10.30.2003 Inversiones Boston Corredores de Bolsa Ltda. Dollars
CRV 09.30.2003 10.10.2003 Banco de Chile Pesos
CRV 09.29.2003 10.03.2003 Banco de Chile Pesos
CRV 09.30.2003 10.10.2003 Banco de Chile Pesos
CRV 09.29.2003 10.04.2003 Banco de Chile Pesos
CRV 09.29.2003 10.07.2003 Banco de Chile Dollars
CRV 09.30.2003 10.10.2003 Banco Bilbao Vizcaya Argentaria Dollars
CRV 09.25.2003 10.27.2003 Banco Bilbao Vizcaya Argentaria Dollars
CRV 09.25.2003 10.10.2003 Banco Bilbao Vizcaya Argentaria Dollars
CRV 09.30.2003 10.10.2003 Banco Bilbao Vizcaya Argentaria Dollars
CRV 09.30.2003 10.10.2003 Banco Bilbao Vizcaya Argentaria Dollars
Price Rate Final Instrument Market Value
Set Value
827,000 0.22 827,061 BPC-PDBC 827,000
1,228,229 1.00 1,220,581 CHI-EST-PRD-FNCHI 1,228,229
350,000 0.30 352,552 PRBC 352,488
350,000 0.30 351,701 PRBC 351,554
300,000 0.30 302,100 PRBC 301,372
150,000 0.30 150,621 PRBC 150,081
320,000 0.30 321,181 PRBC 320,173
320,000 0.30 321,728 PRBC 320,173
280,000 1.60 265,410 PRBC 265,140
262,400 1.60 265,016 PRBC 264,454
228,000 0.29 228,066 PRD 228,000
500,000 0.27 500,450 PRD 500,000
250,000 0.33 250,110 PRD 250,028
70,000 0.27 70,063 PRD 70,000
105,000 0.33 105,046 PRD 105,012
458,201 1.55 456,226 PRD 456,089
109,746 1.70 109,112 PRD 109,060
1,688,773 2.00 1,701,713 PRD 1,699,165
657,110 1.80 661,466 PRD 661,135
63,852 1.70 63,483 PRD 63,453
19,954 1.70 19,838 PRD 19,829
31
12. Fixed Assets
Fixed Assets:
Cristalerias de Chile S.A.
The Fixed Assets are valued according to note 2j), and the main goods included
under this item as of september 30, 2003 and 2002 are the ones detailed in the
annexed table.
The items that make up the Company's fixed assets as of September 30, 2003 and
2002 include mainly Land, Industrial Constructions, Infrastructure Works,
Machinery, and Equipment distributed between the Padre Hurtado, Alto Jahuel
and other minor.
During 2002, the parent company effected a fixed asset inventory, proceeding
to adjust the values of write-off assets with their respective accumulated
depreciation.
Technical Reappraisal and Adjustment of Accounting Values:
The parent company carried out a technical reappraisal of its fixed assets in
1979. Likewise, in June 1986 it adjusted those assets. Both operations were
carried out according to the provisions established in Circular Letters No.
1529 and No. 550 respectively of the Securities and Insurance Commission.
The effects of these operations, including write-offs of property, are shown
on the attached chart.
Depreciations:
The charge against results for this item amounts to Th Ch$ 10,891,555 in 2003
and Th Ch$ 10,261,008 in 2002.
The detail is shown on an attached chart.
32
CRISTALERIAS DE CHILE S.A. AND SUBSIDIARIES
2003 2002
ThCh$ Th Ch$
Land
Land and Mining Properties 13,116,753 13,484,070
Subtotal Lands 13,116,753 13,484,070
Buildings and Infrastructure Projects
Hi rises and industrial buildings 30,556,354 29,741,788
Installations 30,792,779 26,142,482
Residences 26,265 26,265
Subtotal 61,375,398 55,910,535
Accumulated depreciation 18,771,389 15,644,259
Fiscal year depreciation 2,231,632 1,867,992
Subtotal Depreciations 21,003,021 17,512,251
Subtotal Constructions and Projects 40,372,377 38,398,284
Machinery and Equipment
Machinery 93,183,797 92,716,919
Furnaces 46,365,920 37,892,223
Furniture and Furnishings 2,526,959 2,926,751
Tools 625,352 631,234
Rolling Stock 863,602 796,879
Subtotal 143,565,630 134,964,006
Accumulated depreciation 62,802,660 60,902,367
Fiscal year depreciation 8,503,175 8,236,267
Subtotal Depreciations 71,305,835 65,825,364
Subtotal Machinery and Equipment 72,259,795 65,825,372
Other Fixed Assets
Spare parts 5,545,442 5,216,836
Imports in transit 131,726 65,105
Work in progress 2,734,774 2,577,078
Lots in Pirque and Leyda 464,290 475,952
Deferred Customs Duties 289,747 457,394
Packages and Bundling 236,179 236,182
Other 1,922,909 1,609,532
Subtotal Other Assets 11,325,067 10,638,079
Total Fixed Assets 229,382,848 214,996,690
3Total Accumulated Depreciation 81,574,049 76,546,626
Total Depreciation of the Period 10,734,807 10,104,259
Total Net Fixed Assets 137,073,992 128,345,805
33
TECHNICAL REVALUATION AND ADJUSTMENT TO ACCOUNTING VALUES
2003 2002
ThCh$ Th Ch$
Land
Land 313,585 319,476
Subtotal net land and mining properties 313,585 319,476
Buildings and Infrastructure Projects
High rises and industrial buildings 6,264,995 6,258,899
Installations 41,406 444,405
Subtotal Buildings 6,306,401 6,703,304
Accumulated Depreciation (4,861,664) (5,055,742)
Fiscal year depreciation (156,748) (156,749)
Subtotal depreciation (5,018,412) (5,212,491)
Subtotal Buildings and Infrastructure project 1,287,989 1,490,813
Machinery and Equipment
Furnaces 0 530,370
Machinery 0 1,015,188
Furniture and Furnishings 0 54,778
Tools 0 14,554
Subtotal Machinery and Equipment 0 1,614,890
Accumulated Depreciation 0 (1,614,890)
Fiscal year depreciation 0 0
Subtotal depreciation 0 (1,614,890)
Subtotal Machinery and Equipment 0 0
Subtotal Net Technical Revalatuaion 1,601,574 1,810,289
TOTAL REVALUED ASSETS 6,619,986 8,637,670
TOTAL ACCUMULATED DEPRECIATION (4,861,664) (6,670,632)
TOTAL DEPRECIATION OF THE PERIOD (156,748) (156,749)
TOTAL NET 1,601,574 1,810,289
34
13. Sales transactions with leaseback
These type of transactions were not carried out as of September 30, 2003 and
2002.
35
14. Investments in related companies
Investments in force as of September 30, 2003 and 2002 are detailed as follows:
METROPOLIS INTERCOM S.A.
On April 30, 2000 the Shareholders of Metropolis Intercom S.A.. agreeded to
make a capital increase by issuing 3,923,834 shares for Ch$ 1,256.67 per
share, equivalent to Th Ch$ 4,931,000. Such amount was subscribed 50% by
Cristalchile Comunicaciones S.A. and the remaining 50% by Liberty
Comunicaciones de Chile Uno Ltda.
The payment of such subscription was made by the subsidiary Cristalchile
Comunicaciones S.A. on September 29, 2003, paying 1,961,917 shares for a value
of Th Ch$ 2,462,794.
CIECSA S.A.
On August 26, 2003 the Shareholders of Ciecsa S.A. agreeded to increase
company's equity through the issue of 36,400,000 shares equivalent to Th Ch$
910,000 which were fully subscribed by Cristalerias de Chile S.A.
This capital increase allowed CIECSA S.A. to complete financing in order to
pay the balance of a ThUS$ 2,100 debt it had with Televisa S.A., produced by
the purchase of 7,885,472 shares of Megavision S.A. in August 2002.
MEGAVISION S.A.
On August 27, 2002 the Company purchased from Televisa S.A. 7,885,472 shares
of Megavision S.A., wich correspond to the totality of the participation that
Televisa S.A. held in that company.
The price of transaction of the shares of Megavision S.A. held by Televisa
S.A. was Th US$ 4,200,000; equivalent to US$ 0.532625 per share. Both parties
agreed that the aforementioned price would be paid with US$2,100,000 cash on
August 27, 2002, and the remaining balance of US$ 2,100,000 on August 27,
2003.
On the other hand, Ciecsa S.A. sold 3,600 shares of Megavision S.A. at a price
of US$ 0.532625 each, to Servicios y Consultorias Hendaya S.A.
As a result of this transactions the participation of Ciecsa in Megavision
S.A. reached 99.99%.
EDICIONES CHILOE S.A.
On September 27, 2001, the Shareholders of Ediciones Chiloe agreeded to
increase the company's equity in Th Ch$ 684.308, by issuing 1,500,395 shares,
that were subscribed both by Ciecsa S.A. and Recoletos Chile Ltda.
Of this issue 1,279,013 shares were paid for the equivalent to Th Ch$583,339
through the contribution of 1,046 shares of Ediciones Financieras S.A., with a
value of Th Ch$ 421,551 and the capitalization of loans that the shareholders
had granted the comoany for Th Ch$ 161,788.
On February 4, 2002, the partners of Ediciones Chiloe agreed to pay 86,352
shares already subscribed. Ciecsa S.A. paid Th Ch$ 19,859 equivalent to 43,176
shares, with which the participation in Ediciones Chiloe S.A. is maintained at
50%.
36
There are 135,030 subscribed shares for which the due date is September 2004.
INVESTMENTS ABROAD
------------------------
RAYEN CURA S.A.I.C.
On January 31, April 25 and September 30 of 2003 Rayen Cura S.A.I.C. carried
out repayment of part of a capital increase paid on April 29, 2002. Total
amounts reimbursed amounted Th US$ 2,600.
As of September 30 the financial statements of Rayen Cura S.A.I.C. acknowledge
a rate of exchange of $ 2.87 Argentine pesos pero Dollar. Cristalchile
Inversiones, in turn, has adjusted the financial statements of Rayen Cura
S.A.I.C. in order to acknowledge the variation occurred from $3.32 (December
31, 2002) and $2.87 Argentine pesos per US dollar at of September 30, 2003.
As an effect of the result of the subsidiary and the financial statements
conversion of Rayen Cura S.A.I.C., according to the chilean normative,
CristalChile Inversiones S.A. has acknowledged during the period a profit of
Th Ch$ 717,358 and Th Ch$ 2,675,431 loss as of September 30, 2002.
On the other hand, the Dollar rate of exchange variation in Chile during the
period, originated adjustments of Th Ch$ 1,232,724 and Th Ch$500,208 from the
investment in Rayen Cura and for goodwill from the purchase of shares of that
company, respectively, which were charged (2003) and credited (2002) to the
item Other Equity Reserves.
As stipulated in Technical Bulletin No. 64 of the Accountants Association of
Chile, following is the information related to investments abroad:
2002 2003
Th$ Th$
CristalChile Inversiones's share of
Rayen Cura S.A.I.C. 12,917,603 17,079,169
Negative goodwill(net of amortization) 4,766,114 5,937,234
----------- -----------
TOTAL 17,683,717 23,016,403
Loss due to devaluation (2,055,600) (3,671,745)
Accrued losses 717,358 (2,675,431)
The investment in Rayen Cura S.A.I.C. is controlled in Dollars of the United
States of America.
37
CRISTALERIAS DE CHILE S.A.
NOTE 14- INVESTMENTS IN RELATED COMPANIES
BREAKDOWN OF INVESTMENTS
Investment Shareholder Company
(Percentage) Equity
R.U.T. COMPANY Country of Control Number of 09-30-2003 09-30-2002 09-30-2003 09-30-2002
Origin Currency Shares
78.619.410-5 Cordillera
Comunicaciones
Holding Chile Peso 0 50.0000000000 50.0000000000 135,544,132 149,543,210
78.619.370-2 Cordillera
Comunicaciones
Ltda. Chile Peso 0 0.2500000000 0.2500000000 136,225,258 150,294,680
89.150.900-6 Vina Los
Vascos S.A. Chile Peso 60,000,000 43.0000000000 43.0000000000 13,013,180 10,928,525
90.684.000-6 Editorial
Zig-Zag S.A. Chile Peso 114,516,900 49.8896198750 49.8896198750 455,245 428,124
96.793.770-3 Ediciones
Chiloe S.A. Chile Peso 1,570,146 49.9999965057 49.9999965057 1,430,903 1,588,745
96.826.870-8 Inmobiliaria
Don Alberto
S.A. Chile Peso 3,817 38.1700000000 38.1700000000 27 235
86.881.400-4 Envases CMF
S.A. Chile Peso 28,000 50.0000000000 50.0000000000 33,088,075 30,296,796
0-E Rayen Cura
S.A.I.C Argentina Dollar 1,376,000 40.0000000000 40.0000000000 32,294,007 42,697,923
98.806.690-0 Proser S.A. Chile Peso 0 0.5000000000 0.5000000000 -12,200 -46,099
96.787.750-6 Metropolis
Intercom S.A. Chile Peso 88,970,214 2.2051403800 0.0000000000 78,632,817 0
TOTAL
BREAKDOWN OF INVESTMENTS
R.U.T. Net Result of VPP Income not
Income Accrual Realized
09-30-2003 09-30-2002 09-30-2003 09-30-2002 09-30-2003 09-30-2002 09-30-2003 09-30-2002
78.619.410-5 -10,445,352 -13,614,071 -5,222,767 -6,807,037 67,772,066 74,771,605 0 0
78.619.370-2 -10,498,023 -13,682,483 -26,245 -34,206 340,563 375,735 0 0
89.150.900-6 1,110,802 147,423 477,645 63,391 5,595,667 4,699,266 0 0
90.684.000-6 -323,472 -264,183 -161,268 -66,983 227,120 213,591 0 0
96.793.770-3 -201,354 -133,966 -100,677 -66,983 715,451 794,372 -186,672 -227,077
96.826.870-8 -8 -2,734 -4 -1,042 10 91 0 0
86.881.400-4 713,420 463,654 356,709 231,827 16,544,038 15,148,398 0 0
0-E 1,793,395 -6,688,577 717,358 -2,675,431 12,917,603 17,079,169 0 0
98.806.690-0 146 -3,340 2 -3,328 1 0 0 0
96.787.750-6 7,393,877 0 0 0 1,733,964 0 0 0
105,846,483 113,082,227 -186,672 -227,077
R.U.T. Book value
of Investment
09-30-2003 09-30-2002
78.619.410-5 67,772,066 74,771,605
78.619.370-2 340,563 375,735
89.150.900-6 5,595,667 4,699,266
90.684.000-6 227,120 213,591
96.793.770-3 528,779 567,295
96.826.870-8 10 91
86.881.400-4 16,544,038 15,148,398
0-E 12,917,603 17,079,169
98.806.690-0 1 0
96.787.750-6 1,733,964 0
105,659,811 12,855,150
38
15. Investments in other companies
Investments in other companies that totaled Th Ch$ 827,235 in September 30,
2003 (Th Ch $1,319,838 in 2002) are shown on attached charts.
CRISTALERIAS DE CHILE S.A.
NOTE 15 - INVESTMENTS IN OTHER CORPORATIONS
R.U.T. Company Name Number of Shareholding Book Value
Shares (Percentage) 09-30-2003 09-30-2002
96.895.100-9 Internet Holding S.A. 57,104 7.4020 222,521 715,115
0-E Bazuca.com Inc. 266,500 7.8900 604,714 604,723
39
16. Goodwill Amortization
NEGATIVE GOODWILL
Stock purchases made in different periods of S.A. Vina Santa Rita, Vina Los
Vascos S.A., Ciecsa S.A., Empresa Editora Zig Zag S.A., Red Televisiva
Megavision S.A., Metropolis Intercom S.A., and Rayen Cura S.A.I.C. have
produced negative goodwill whose net balance to be amortized as of September
30, 2003 totaled Th Ch 9,607,498 (Th Ch$ 10,370,837 in 2002).
POSITIVE GOODWILL
As of September 30, 2003 and 2002 the parent company and the subsidiaries do
not show any balance for this item.
40
CRISTALERIAS DE CHILE S.A.
NOTE 16 - GOODWILL ON INVESTMENTS
NEGATIVE GOODWILL
R.U.T. Company Name 09-30-2003 09-30-2002
Amount Amortiz. Goodwill Amount Amortiz. Goodwill
this period Balance this period Balance
99.999.999-9 Rayen Cura S.A. 223,412 4,766,114 261,937 5,937,234
86.547.900-K S.A. Vina Santa Rita 37,707 572,714 37,708 623,000
96.608.270-4 Ciecsa S.A. 91,106 1,366,596 91,108 1,488,096
89.150.900-6 Vina Los Vascos S.A. 66,877 1,171,686 66,530 1,260,808
90.684.000-6 Editorial Zig-Zag S.A. 4,773 104,195 4,774 110,562
79.952.350-7 Red Televisiva Megavision S.A. 40,026 897,362 13,140 951,137
96.787.750-6 Metropolis Intercom S.A. 0 728,831 0 0
TOTAL 463,901 9,607,498 475,197 10,370,837
41
17. Intangibles
As of September 30, 2003 and 2002 this item is composed as follows:
Th Ch$ Th Ch$
2003 2002
Concession of Channel 9
frequency and regional network 10,200,756 10,200,584
Trademarks 1,613,800 1,546,684
---------- ----------
TOTAL INTANGIBLES 11,814,556 11,747,268
ACCUMULATED AMORTIZATIONS
From Channel 9 Frequency (932,965) (786,814)
From Trademarks (222,184) (182,988)
---------- ----------
TOTAL AMORTIZATIONS (1,155,149) (969,802)
42
18. Others (Assets)
As of september 30, 2003 and 2002 the following are included under this item:
2003 2002
Th Ch$ Th Ch$
Celulosa Arauco bonds (*) 8,870,218 10,339,348
Price differential bond adquisition(*) 101,384 240,869
Negative goodwill Bond Sale (Net) 3,209,731 3,548,757
Expenses of bond sales 1,092,665 1,288,650
Bank Cash Reserve 2,402 31,151
Local programs to be exhibited over
a year from the present 0 0
Foreign programs to be exhibited over
a year from the present 743,899 2,764,162
Long-Term Tax VAT Vina Dona Paula 437,144 258,357
No Accrued Custom Duty Interests 0 50,271
Presumed Minimum Profit Tax 20,694 18,763
Other 45,295 149,966
----------- -----------
Total 14,523,432 18,690,294
(*) Investment in Celulosa Arauco bonds equivalent to US$ 13,420,000 at an
annual rate of 6.95% and maturity at September 15, 2005, Th Ch$ 101,384 for
surpluss Price differential paid in the acquisition of Celulosa Arauco bonds,
which will be amortized in the same term of the bond's maturity 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.
43
19. Short-term obligations with banks and financial institutions
A detailed list of operations is shown on the attached chart.
44
CRISTALERIAS DE CHILE S.A.
NOTE 19- OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS, SHORT TERM
Type of Currency and Readjustment Index
Bank or Financial
R.U.T. Institution Dollars Euros Yen
09-30-2003 09-30-2002 09-30-2003 09-30-2002 09-30-2003 09-30-2002
---------- ---------- ---------- ---------- ---------- ----------
Short term (code: 5.21.10.10)
0-E Banco Regional de Cuyo 0 0 0 0 0 0
97.004.000-5 Banco de Chile 133,106 0
97.036.000-K Banco SantanderSantiago 0 75,872 0 0 0 0
Other 0 0 0 0 0 0
TOTAL 133,106 75,872 0 0 0 0
Amount capital due 132,192 75,839 0 0 0 0
Annual average
interest rate 1.88 2.60 0.00 0.00 0.00 0.00
Long Term - Short Term (code:
5.21.10.20)
0-E JP Morgan Chase Bank 136,073 22,015,872 0 0 0 0
97.036.000-K Banco SantanderSantiago 0 0 0 0 0 0
97.008.000-7 Citibank NA 1,818,983 2,137,069 0 0 0 0
0-E Banco Dresner 0 554,750 0 0 0 0
0-E Banco Argentaria 241,755 282,326 0 0 0 0
97.018.000-1 Scotiabank 0 0 0 0 0 0
Banco Credito e
97.006.000-6 Inversiones 0 0 0 0 0 0
97.004.000-4 Banco de Chile 0 0 0 0 0 0
97.030.000-5 Banco Estado 0 0 0 0 0 0
Other 0 0 0 0 0 0
TOTAL 2,196,811 24,990,017 0 0 0 0
Amount capital due 2,043,238 24,944,632 0 0 0 0
Average annual
interest rate 1.83 3.35 0.00 0.00 0.00 0.00
Percentage oblig. foreign curr.
(%) 57.0000
Percentage oblig. foreign curr.
(%) 43.0000
CRISTALERIAS DE CHILE S.A.
NOTE 19- OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS, SHORT TERM
Type of Currency and Readjustment Index
Other
Bank or Financial Foreign
R.U.T. Institution Currencies U.F. Nonadjustable $ Total
09-30-2003 09-30-2002 09-30-2003 09-30-2002 09-30-2003 09-30-2002 09-30-2003 09-30-2002
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Short term (code: 5.21.10.10)
0-E Banco Regional de Cuyo 17,792 9,755 0 0 0 0 17,792 9,755
97.004.000-5 Banco de Chile 0 0 0 0 0 0 133,106 0
97.036.000-K Banco SantanderSantiago 0 0 0 0 0 1,031,487 0 1,107,359
Other 0 0 0 0 0 0 0 0
TOTAL 17,792 9,755 0 0 0 1,031,487 150,898 1,117,114
Amount capital due 17,792 9,755 0 0 0 1,029,000 149,984 1,114,594
Annual average
interest rate 0.00 3.09 0.00 0.00 0.00
Long Term - Short Term (code:
5.21.10.20)
0-E JP Morgan Chase B`ank 0 0 0 0 0 0 136,073 22,015,872
97.036.000-K Banco SantanderSantiago 0 0 471,630 253,018 0 0 471,630 253,018
97.008.000-7 Citibank NA 0 0 0 0 0 0 1,818,983 2,137,069
0-E Banco Dresner 0 0 0 0 0 0 0 554,750
0-E Banco Argentaria 0 0 0 0 0 0 241,755 282,326
97.018.000-1 Scotiabank 0 0 447,011 449,736 0 0 447,011 449,736
Banco Credito e
97.006.000-6 Inversiones 0 0 170,149 170,010 0 0 170,149 170,010
97.004.000-4 Banco de Chile 0 0 317,510 213,986 0 0 317,510 213,986
97.030.000-5 Banco Estado 0 0 0 0 268,914 0 268,914 0
Other 0 0 0 0 0 0 0 0
TOTAL 0 0 1,406,300 1,086,750 268,914 0 3,872,025 26,076,767
Amount capital due 0 0 1,323,507 991,467 264,375 0 3,631,120 25,936,099
Average annual
interest rate 0.00 0.00 4.43 4.22 4.94 0.00
Percentage oblig. foreign curr.
(%)
Percentage oblig. foreign curr.
(%)
45
20. Other Current Liabilities
As of September 30, 2003, there was a balance Th Ch$ 5,056,060 in favor of
financial institutions corresponding to future contracts in foreing currency
subscribed by the parent company and its subsidiaries. More detail on these is
shown in note 34 Derivative Contracts.
As of September 30, 2002 there was no balance for this item in othe current
liabilities.
46
21. Long-term obligations with banks and financial institutions
The obligations with banks and financial institutions are presented on the
charts attached.
47
CRISTALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Institution Years of Maturity
Bank or Currency
Financial adjustment More than 1 More than 2 More than 3 More than 5
R.U.T. Institution index up to 2 up to 3 up to 5 up to 10
Thou Ch$ Thou Ch$ Thou Ch$ Thou Ch$
----------------- ---------------------------- -------------- -------------- -------------- ------------- ----------
0-E J.P. Morgan Chase Bank Dollars 0 8,262,125 24,786,375 0
90.008.000-K Citibank N.A. Dollars 781,146 0 0 0
Dollars 120,755 0
97.006.000-6 Banco Credito e Inversiones UF 169,460 84,728 0 0
97.004.000-5 Banco de Chile UF 1,222,750 0 0 0
0-E Banco Argentaria Dollars 120,877 0 0 0
Other
0-E Banco Regional de Cuyo currency 44,835 10,760 1,869 0
97.030.000-7 Banco Estado Non-adjustment 275,722 264,376 132,188 0
97.036.000-K Banco SantanderSantiago UF 458,673 458,673 458,673 0
97.018.000-1 Banco Scotiabank UF 406,670 406,670 813,340 0
Total 3,600,888 9,487,332 26,192,445 0
Percentage of obligations in foreign currency 87.0000%
Percentage of obligations in local currency 13.0000%
CRISTALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Closing date Closing date
Institution Years of Maturity Current period Previous period
Total Long- Total Long-
Term at Annual Term at
Bank or closing average closing
Financial of Financial interest of Financial
R.U.T. Institution More than 10 years Statements rate Statements
Amount Period
----------------- ---------------------------- ----------- ----------- -------------- ------------- ---------------
0-E J.P. Morgan Chase Bank 0 0 33,048,500 1.925 16,509,497
90.008.000-K Citibank N.A. 0 0 781,146 1.74 2,731,571
0 0 120,755 2.12 423,065
97.006.000-6 Banco Credito e Inversiones 0 0 254,188 TAB 90+2.0 423,306
97.004.000-5 Banco de Chile 0 0 1,222,750 TAB 180+2.0 1,510,223
0-E Banco Argentaria 0 0 120,877 2.12 423,529
0-E Banco Regional de Cuyo 0 0 57,464 1.75 49,370
97.030.000-7 Banco Estado 0 0 672,286 4.94 0
97.036.000-K Banco SantanderSantiago 0 0 1,376,019 TAB 180+1.8 1,833,194
97.018.000-1 Banco Scotiabank 0 0 1,626,680 TAB 180+2.0 2,031,695
Total 0 39,280,665 25,935,450
Percentage of obligations in foreign currency
Percentage of obligations in local currency
48
22. Short-term and long-term obligations with
the public (promissory notes and bonds)
The balance for the short-term as of September 30, 2003 was Th Ch$ 1,141,520,
corresponding to interests accrued for bonds issued by the Parent Company and
the subsidiary S.A. Vina Santa Rita.
As of September 30, 2003, there are long-term obligations with the public for
Th Ch$ 89,813,959, of which Th Ch$ 69,478,723 correspond to bonds issued in
UF's by the parent company, of series C1, C2, D1, D2; and Th Ch$ 20,335,236
which correspond to bonds series C and D issued in UF's by the subsidiary S.A.
Vina Santa Rita.
As of September 30, 2002 the balance in the short term was Th Ch$ 1,573,197,
corresponding to accrued interests of bonds issued by the parent company and
the subsidiary S.A. Vina Santa Rita.
As of September 30, 2002, there are long-term obligations with the public for
Th Ch$ 89,740,797, of which Th Ch$ 69,422,126 correspond to bonds issued in
UF's by the parent company, of series C1, C2, D1, D2; and Th Ch$ 20,318,671
which correspond to bonds of series C and D issued by the subsidiary S.A. Vina
Santa Rita.
This liability is shown in detail in the appendix.
49
Cristalerias de Chile S.A.
NOTE 22: SHORT-TERM AND LONG-TERM OBLIGATIONS WITH PUBLIC
(PROMISSORY NOTES AND BONDS)
BONDS
REGISTRATION OR CURRENT
IDENTIFICATION No. DEPOSIT INDEXING INTEREST FINAL
OF INSTRUMENT SERIES FACE VALUE UNIT OF BOND RATE MATURITY
---------------------------- ------------ ---------- ------------ ---------- ----------
LONG-TERM BONDS-CURRENT PORTION
296-09.07.02 C1 Interests 0 UF 4.75 01-15-2004
296-09.07.02 C2 Interests 0 UF 4.75 01-15-2004
296-09.07.02 D1 Interests 0 UF 5.80 01-15-2004
296-09.07.02 D2 Interests 0 UF 5.80 01-15-2004
144-12.07.91 A 0 UF 6.70 06-01-2003
241-15.12.00 C1 Interests 0 UF 6.25 06-01-2003
241-15.12.00 D1 Interests 0 UF 6.25 06-01-2003
241-15.12.00 D2 Interests 0 UF 6.25 06-01-2003
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
241-15.12.00 C1 200,000 UF 6.25 12-15-2005
241-15.12.00 D1 100,000 UF 6.25 12-15-2021
241-15.12.00 D2 900,000 UF 6.25 12-15-2021
LONG-TERM TOTAL
Cristalerias de Chile S.A.
NOTE 22: SHORT-TERM AND LONG-TERM OBLIGATIONS WITH PUBLIC
(PROMISSORY NOTES AND BONDS)
BONDS
REGISTRATION OR
IDENTIFICATION No.
OF INSTRUMENT SERIES INSTALLMENTS ISSUE
INTEREST AMORTIZATION PAR VALUE IN CHILE OR
PAYMENT PAYMENT 09-30-2003 09-30-2002 ABROAD
---------------------------- ------------ ---------- ------------ ---------- ---------- ---------
LONG-TERM BONDS-CURRENT PORTION
296-09.07.02 C1 Interests SEMI-ANNUAL SEMI-ANNUAL 255,254 255,047 LOCAL
296-09.07.02 C2 Interests SEMI-ANNUAL SEMI-ANNUAL 85,085 85,015 LOCAL
296-09.07.02 D1 Interests SEMI-ANNUAL SEMI-ANNUAL 393,798 393,477 LOCAL
296-09.07.02 D2 Interests SEMI-ANNUAL SEMI-ANNUAL 41,452 41,418 LOCAL
144-12.07.91 A SEMI-ANNUAL SEMI-ANNUAL 0 432,606 LOCAL
241-15.12.00 C1 Interests SEMI-ANNUAL SEMI-ANNUAL 60,988 60,938 LOCAL
241-15.12.00 D1 Interests SEMI-ANNUAL SEMI-ANNUAL 30,494 30,470 LOCAL
241-15.12.00 D2 Interests SEMI-ANNUAL SEMI-ANNUAL 274,449 274,226 LOCAL
TOTAL CURRENT PORTION 1,141,520 1,573,197
LONG-TERM BONDS
296-09.07.02 C1 SEMI-ANNUAL SEMI-ANNUAL 25,419,045 25,398,339 LOCAL
296-09.07.02 C2 SEMI-ANNUAL SEMI-ANNUAL 8,473,015 8,466,113 LOCAL
296-09.07.02 D1 SEMI-ANNUAL SEMI-ANNUAL 32,197,457 32,171,229 LOCAL
296-09.07.02 D2 SEMI-ANNUAL SEMI-ANNUAL 3,389,206 3,386,445 LOCAL
241-15.12.00 C1 SEMI-ANNUAL SEMI-ANNUAL 3,389,206 3,386,445 LOCAL
241-15.12.00 D1 SEMI-ANNUAL SEMI-ANNUAL 1,694,603 1,693,223 LOCAL
241-15.12.00 D2 SEMI-ANNUAL SEMI-ANNUAL 15,251,427 15,239,003 LOCAL
LONG-TERM TOTAL 89,813,959 89,740,797
50
23. Provisions and Write-Offs
Provisions
The Company has short-term provisions of Th Ch$ 9,664,291 as of September 30,
2003, and Th Ch$ 12,761,878 in 2002.
Long-term provisions of Th Ch$ 7,623,385 and Th Ch$ 5,444,154 are recorded for
the years 2003 and 2002 respectively.
In the attached chart a detail for provisioned amounts is shown.
Bad Debt Provisions:
The parent company and the subsidiaries S.A. Vina Santa Rita and Ciecsa S.A.
have established a bad debt provision of Th Ch$ 738,465 and Th Ch$ 699,826 as
of September 30, 2003 and 2002, respectively.
This provision is deducted from the balance of Debtors from Sales and
Documents Receivable.
Vacation Provision:
The parent company and its subsidiaries have established provisions for the
total cost of vacations pending as of June 30, 2003 and 2002, as established
in Technical Bulletin No. 47 of the Accountants Association of Chile.
The net balance for this item is Th Ch$ 994,626 as of September 30, 2003 (Th
Ch$ 974,092 in 2002).
Provision for Furnace Reconstruction:
This reserve is established throughout the useful life of the refractants of
each smelting furnace so their repair will not distort the result of the
fiscal year when the repairs are made.
The Company has established a reserve in the amount of Th Ch$ 3,514,837 and Th
Ch$ 3,199,104 as of September 30, 2003 and 2002, respectively.
51
CRISTALERIAS DE CHILE S.A.
NOTE 23: PROVISIONS AND WRITE-OFFS
09-30-2003 09-30-2002
Thou Ch$ Thou Ch$
---------- ----------
Short-Term
Commissions and Fees 2,885,484 3,127,859
Reserve indirect cost 1,180,854 1,287,744
Packing return to clients 1,150,178 1,288,343
Legal holidays 994,626 974,092
Local and foreign suppliers 885,780 1,218,482
Advertising Agency Commmission 513,278 618,937
Spareparts reserve 438,189 459,332
Grape harvest expenses 405,606 117,683
Advertising and marketing 242,503 94,820
Severance payments 181,526 171,436
Share of Board of Directors 162,213 800,062
Reserve for loss of exported products 89,709 0
Reserve for bonus 81,832 68,593
Copyright 48,248 297,877
Furnace reconstruction 0 1,628,602
Insurance Policies 0 28,776
Other reserves 404,265 579,240
TOTAL 9,664,291 12,761,878
Long-Term
Severance payment 4,108,548 3,873,652
Furnace reconstruction 3,514,837 1,570,502
TOTAL 7,623,385 5,444,154
52
24. Severance Payment
The provision for severance payments to personnel is included at its current
value, as expressed in note 2 t).
As of September 30, 2003 it amounts to Th Ch$ 4,290,074 (Th Ch$ 4,045,088 in
2002).
As of September 30, 2003, the parent company has paid severance payments of Th
Ch$ 138,485 (Th Ch$ 66,607 in 2002) chargeable against the provision.
53
25. Other long-term liabilities
As of September 30, 2003 and 2002 there are no balances for this item.
54
26. Minority interest
The subsidiaries that generate minority interests as of September 30, 2003 and
2002 are shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 26: MINORITY INTEREST
SUBSIDIARY COMPANY NET WORTH RESULTS SHAREHOLDING
Thou Ch$ Thou Ch$ Thou Ch$ Thou Ch$ % %
2003 2002 2003 2002 2003 2002
------------------------------------ ------------- ----------- ---------- ----------- ------- -------
S.A.Vina Santa Rita 37,352,787 36,456,464 (1,715,871) (3,851,187) 45.90 45.90
CIECSA Consolidated 292,433 226,538 (21,186) (256,777) 1.55 1.73
Constructora Apoger S.A. 1,022 10,434 210 (340) 20.00 20.00
Cristalchile Comunicaciones S.A. 1,293 1,487 97 135 0.01 0.01
TOTAL 37,647,535 36,694,923 (1,736,750) (4,108,169)
55
27. Changes in Equity
a. Activity in 2003 and 2002
The activity of the capital and reserve accounts in the fiscal years ended in
September 30, 2003 and 2002, are shown in the attached charts.
b. Other Reserves
The detail of this item is as follows:
2003 2002
ThCh$ ThCh$
Future capital increases 4,599,545 4,390,932
Reserve for adjustment of value of fixed
assets 1,601,574 1,810,288
Adjustment for conversion difference in
investment in Rayen Cura S.A.I.C. 2,129,950 5,578,731
Difference VPP Sodex (218,686) (218,689)
-------- --------
TOTAL OTHER RESERVES 8,112,383 11,561,262
56
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NET WORTH
Reserve Premium in Reserve
Paid-in capital sale of Other Future
ITEM Capital revaluation shares Reserves Dividends
--------------------------------------- ----------- ----------- ------------ ----------- -----------
Balances as of 09/30/2003
Initial balance 64,749,257 0 27,598,393 9,713,099 114,912,655
Distribution result previous fiscal
year 0 0 0 0 14,356,726
Final dividend previous fiscal year 0 0 0 0 -5,526,400
Capital increases with cash stock
issue 0 0 0 0 0
Reserves and/or Profits
Capitalization 0 0 0 0 0
Development period Accumulated
deficit 0 0 0 0 0
Accumulated conversion difference
adjustment 0 0 0 -1,717,273 0
Eventual Dividends 0 0 0 0 -960,000
Owner's equity Revaluation 0 776,991 331,181 116,557 1,573,338
Fiscal Year Result 0 0 0 0 0
Provisional Dividends 0 0 0 0 0
---------- ------- ---------- --------- -----------
Final balances as of 09/30/2003 64,749,257 766,991 27,929,574 8,112,383 124,356,319
========== ======= ========== ========= ===========
Initial balance as of 09/30/2002 62,863,356 0 26,794,558 7,942,919 102,798,113
Distribution result previous fiscal
year 0 0 0 0 12,989,754
Final dividend previous fiscal year 0 0 0 0 -4,230,400
Capital increases with cash stock
issue 0 0 0 0 0
Reserves and/or profit Capitalization 0 0 0 0 0
Development period accumulated
deficit 0 0 0 0 0
Accumulated conversion difference
adjustment 0 0 0 3,189,257 0
Eventual Dividends 0 0 0 0 0
Owner's equity revaluation 0 817,224 348,328 103,258 1,454,480
Fiscal Year Result 0 0 0 0 0
Provisional Dividends 0 0 0 0 0
---------- ------- ---------- --------- -----------
Final balances 62,863,356 817,224 27,142,886 11,235,434 113,011,947
========== ======= ========== ========= ===========
Updated Final Balances as of
09/30/2002 64,686,393 840,924 27,930,030 11,561,262 116,289,293
========== ======= ========== ========= ===========
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NET WORTH
Devel.
Accumulated Provisional Period Fiscal
ITEM Results Dividends Deficit Year Result
------------------------------------- ----------- ----------- ---------- -----------
Balances as of 09/30/2003
Initial balance 17,660,662 -3,303,936 0 0
Distribution result previous fiscal
year -17,660,662 3,303,936 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 0
Eventual Dividends 0 0 0 0
Owner's equity Revaluation 0 -960 0 0
Fiscal Year Result 0 0 0 2,415,990
Provisional Dividends 0 -960,000 0 0
Final balances as of 09/30/2003 -960,960 2,415,990
Initial balance as of 09/30/2002 17,770,611 -4,657,728 -123,129 0
Distribution result previous fiscal
year -17,770,611 4,657,728 123,129 0
Final dividend previous fiscal year 0 0 0 0
Capital increases with cash stock
issue 0 0 0 0
Reserves and/or profit Capitalization 0 0 0 0
Development period accumulated
deficit 0 0 0 0
Accumulated conversion difference
adjustment 0 0 0 0
Eventual Dividends 0 0 0 0
Owner's equity revaluation 0 0 0 0
Fiscal Year Result 0 0 0 15,984,148
Provisional Dividends 0 -1,930,560 0 0
-------- ---------- ------- ----------
Final balances 0 -1,930,560 0 15,984,148
======== ========= ======= ==========
Updated Final Balances as of
09/30/2002 0 -1,986,546 0 16,447,688
======== ========= ======= ==========
57
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH - NUMBER OF SHARES
No. No. No. SHARES SHARES SHARES
SERIES SUBSCRIBED PAID WITH VOTING
------ ---------- ---------- ----------
SINGLE 64,000,000 64,000,000 64,000,000
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH - CAPITAL (AMOUNT - TH CH$)
SUBSCRIBED PAID-IN
SERIES CAPITAL CAPITAL
------ ---------- ----------
SINGLE 64,749,257 64,749,257
58
28. Other Non-Operating Income and Disbursements
As of September 30, 2003 and 2002 the non-operating income totals Th Ch$
553,447 and Th Ch$ 859,482 respectively.
Non-operating Expenditures were Th Ch$ 1,521,725 in 2003 and Th Ch$ 2,692,423
in 2002.
More detail is shown on the attached chart.
CRISTALERIAS DE CHILE S.A.
NOTE 28: OTHER NON-OPERATING INCOME AND EXPENSES
2003 2002
Th Ch$ Th Ch$
------ ------
INCOME
Offices and establishments rental 156,873 225,044
Tax exemptions 106,623 127,418
Indemnity for claims 69,475 138,067
Sale of materials 20,919 9,397
Fontec Proyect Benefit 5,443 90,988
Sale of fixed assets 4,527 34,560
Miscellaneous Income 189,587 234,008
TOTAL NON-OPERATING INCOME 553,447 859,482
EXPENSES
Professional advice 569,119 607,037
Suppliers 173,030 641,087
Frequency and internet amortization 111,056 275,366
Research and development Amortization 89,757 0
Loss in sales of fixed assets 82,582 63,661
Share of Board of Directors 75,114 139,620
Trademarks amortization 72,058 42,061
ADR'S expenses 51,624 0
Personnel Contracts Finished 37,018 12,114
Taxes 17,579 0
Write-Off drama series and others 0 526,176
Contracts and unpredictables 0 154,589
Leases 0 40,748
Insurance 0 21,310
Other expenses 241,888 168,654
TOTAL NON-OPERATING EXPENSES 1,521,725 2,692,423
59
29. Price Level Restatements
As a result of the application of the adjustment for price level restatements
as described in Note 2 e), there was a net charge to results in the 2003
fiscal year in the amount of Th Ch$ 705,670 and a net charge against results
of Th Ch$ 1,581,501 in 2002.
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 09-30-2003 09-30-2002
------------------------ ----- ---------- ----------
INVENTORY CPI 96,579 183,419
FIXED ASSETS CPI 1,523,345 1,529,246
INVESTMENTS IN RELATED COMPANIES CPI 729,840 1,650,849
MARKETABLE SECURITIES CPI 45,991 46,376
SHORT-TERM DEBTORS CPI 38,747 43,904
SHORT-TERM DEBTORS UF 1,009 0
ACCOUNTS RECEIVABLE RELATED COMPANIES CPI 262,350 0
LONG-TERM DEBTORS CPI 1,943 2,302
OTHER NON-MONETARY ASSETS CPI 461,321 -239,688
TIME DEPOSITS CPI 4,656 0
RATE DIFFERENCE IN PLACEMENTOF L/T BONDS UF 27,848 0
INFLATION EFFECT CPI 391,258 0
OTHER NON-MONETARY ASSETS CPI 2,361 0
EXPENSE AND COST ACCOUNTS CPI 209,427 991,575
TOTAL (DEBITS)/CREDITS 3,796,675 4,207,983
LIABILITIES (DEBITS)/ CREDITS
NET WORTH CPI -2,809,120 -2,791,397
ACCOUNTS PAYABLE RELATED COMPANIES UF -91 0
BANK LOANS CPI 0 -250,302
BANK LOANS UF -17,067 0
SHORT-TERM RESERVES CPI -5,086 -8,218
LONG-TERM BANK LOANS UF -56,559 0
LONG-TERM BANK LOANS CPI 0 -249,313
LONG-TERM RESERVES CPI -71,369 -88,327
LONG-TERM CREDITORS CPI -535 -553
OBLIGATIONS WITH THE PUBLIC CPI -1,073,461 -244,188
MINNORITY INTEREST CPI -1,038 -59,936
NON-MONETARY LIABILITIES UF -163,024 -810,571
INCOME ACCOUNTS CPI -304,995 -1,286,679
TOTAL (DEBITS)/ CREDITS -4,502,345 -5,789,484
(LOSS) PROFIT FROM ADJUSTMENT FOR CURRENCY DEVALUATION -705,670 -1,581,501
60
30. Exchange Differences
There is a net charge to results in the 2003 fiscal year of Th Ch$ 12,269,406
and a net credit to results of Th Ch$ 11,661,481 in 2002 due to exchange
differences.
According to dispositions of Circular No. 1560 of the SVS, the net effect on
results of foreign currency adjustable assets and liabilities adjustment
without the inflationary effect of the local currency is presented under this
item.
More information is shown on the attached chart.
Cristalerias de Chile S.A.
NOTE 30: EXCHANGE DIFFERENCES
AMOUNT
ITEM CURRENCY 09-30-2003 09-30-2002
---- -------- ---------- ----------
CURRENT ASSETS DOLLARS -1,084,194 1,333,867
CURRENT ASSETS OTHER CUR. -72,836 35,331
MARKETABLE SECURITIES DOLLARS -4,300,205 980,251
CLIENTS DOLLARS -476,913 450,589
CLIENTS OTHER CUR 227,690 1,094,278
TIME DEPOSITS DOLLARS -131,752 5,606,858
INVENTORY DOLLARS -300,861 724,432
INVENTORY OTHER CUR 0 220
LONG TERM INVESTMENTS DOLLARS -783,301 1,330,756
FUTURE CONTRACT EFFECT DOLLARS -763,376 0
INFLATIONARY EFFECT DOLLARS -391,258 0
OTHER ASSETS DOLLARS -270,564 1,180,439
OTHER ASSETS OTHER CUR. -14,363 5,807
TOTAL (DEBITS) CREDITS -8,361,933 12,742,828
SHORT-TERM BANK CREDITS DOLLARS 0 -3,888
ACCOUNT PAYABLE DOLLARS 0 0
DOCUMENTS PAYABLE DOLLARS 464,731 -742,392
DOCUMENTS PAYABLE OTHER CUR. -45,146 -104,662
MISCELLANEOUS CREDITORS SHORT TERM DOLLARS 64,714 -109,118
SHORT TERM RESERVES DOLLARS 2,897 -205,976
LONG-TERM BANK CREDITS DOLLARS 2,882,000 0
LONG-TERM CREDITORS DOLLARS 7,134 -265,405
LONG TERM RESERVES DOLLARS 259,380 -340,705
OTHER LONG-TERM LIABILITIES DOLLARS -104,672 905,769
OTHER LONG-TERM LIABILITIES OTHER CUR. -27,906 -214,970
FUTURE CONTRACT EFFECT DOLLARS -7,410,605 0
INFLATIONARY EFFECT DOLLARS 0 0
TOTAL (DEBITS) CREDITS -3,907,473 -1,081,347
(LOSS) PROFIT FROM EXCHANGE DIFFERENCES -12,269,406 11,661,481
61
31. Extraordinary Items
As of September 30, 2003 and 2002 there are no extraordinary item.
62
32. Expenses for the issue and placement of stocks and debt instruments
The parent company and the subsidiary S.A. Vina Santa Rita carried out bond
placements in August 2002 and March 2001, incurring in placement expenses that
as of September 30, 2003 totaled Th Ch$ 3,793,386 (Th Ch$ 4,191,997 in 2002).
The charge to Results for the amortization of these expenses for year 2003
amounts Th Ch$ 277,966 (Th CH$ 72,558 in 2002) and is beaing realized
according to the maturity of each series.
DETAIL 2003 2002
Short -Term Long-Term Short -Term Long-Term
----------- --------- ----------- ---------
Rate Placement Differential 198,127 2,337,221 197,966 2,535,429
Stamp Tax 141,789 995,222 146,606 1,171,505
Placement Commissions and other 23,584 97,443 22,711 111,917
Other 0 0 636 5,227
--------- --------- --------- ---------
363,500 3,429,886 367,919 3,824,078
63
33. Cash Flow Statement
CASH FLOW STATEMENT
The values included in MISCELLANEOUS on the Cash Flow Statement are detailed
on the attached appendix.
CRISTALERIAS DE CHILE S.A.
CASH FLOW STATEMENT
1. The following is the detail of the item OTHERS:
2003 2002
Th Ch$ Th Ch$
541.11.40 Other Income Received
Treasury Refund Income Tax
and others 1,002,072 127,418
Recover VAT exportation 1,368,663 1,379,565
Discount for paid of customs
duties 0 303,445
Severance insurance 66,924 211,989
Other income 314,328 365,883
Total 2,751,987 2,388,300
541.11.80 Other expenses paid
Exchange difference 5,243,049 612,683
Donations 58,877 44,871
Finished personnel contracts 0 12,114
Advice Services 102,471 108,006
Shareholder's bonds 75,114 0
Customs duties 0 64,032
Other expenses 586,852 668,054
Total 6,066,363 1,509,759
541.12.75 Other financial payments
Maturity of future contracts 694,920 0
Others 64,484 0
Total 759,404 0
541.13.15 Sale of other investments
Redemption Time Dep. over 90
days 0 10,954,454
Redemption interests L.T.
bonds 0 539,039
Other 3,056
Total -- 11,496,549
541.13.30 Other income from investments
Maturity of future contracts 2,261,336 4,634,901
Total 2,261,336 4,634,901
541.13.65 Other investment disbursements
Purchase of shares 318,170 366,017
Future contracts 5,891,184 728,898
Others 2,817 30,400
Total 6,212,171 1,125,315
64
Following are financing and investment activities that did not generate cash
flow during the fiscal year, but that commit future parent company cash flows:
ITEM Amount Th Ch $ Due Date
Dividend 155 960,000 October-03
Amounts payable investment 213,469 October-03
Amounts payable investment 173,757 Decembre-03
--------
Total 1,347,226
65
34. Derivative Contracts
FUTURE CONTRACTS IN FOREIGN CURRENCY
The parent company and its subsidiaries S.A. Vina Santa Rita and Ciecsa S.A.
have signed future sales contracts in foreign currency of Th US$ 93,600 in
2003 (Th US$ 129,700 in 2002) 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.
66
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS
MATURITY OR DESCRIPTION OF CONTRACTS
TYPE OF TYPE OF VALUE OF EXPIRATION SPECIFIC PURCHASE/ PROTECTED ITEM OR TRANSACTION
DERIVATIVE CONTRACT CONTRACT DATE ITEM SALE POSITION NAME AMOUNT
------- ------- -------- ---------- -------- ------------- --------------- ------------
FR CI 24,852,472 THIRD 2004 EXCH RATE P - -
FR CI 25,777,830 FOURTH 2003 EXCH RATE P - -
FR CCPE 742,140 FIRST 2004 EXCH RATE P DOLLAR LOAN 742,140
FR CCPE 742,140 FIRST 2004 EXCH RATE P DOLLAR LOAN 742,140
FR CCPE 1,442,580 FOURTH 2003 EXCH RATE P DOLLAR LOAN 1,442,580
FR CCPE 721,290 FOURTH 2003 EXCH RATE P DOLLAR LOAN 721,290
FR CI 1,456,920 FOURTH 2003 EXCH RATE P PAYABLE ACCOUNT 1,456,920
FR CI 1,456,920 FOURTH 2003 EXCH RATE P INVESTMENTS -
FR CI 721,290 FOURTH 2003 EXCH RATE P INVESTMENTS -
FR CI 2,769,040 THIRD 2004 EXCH RATE P INVESTMENTS -
FR CI 692,260 THIRD 2004 EXCH RATE P INVESTMENTS -
FR CI 353,270 FOURTH 2003 EXCH RATE P - -
FR CI 353,270 FOURTH 2003 EXCH RATE P - -
FR CI 360,805 FOURTH 2003 EXCH RATE P - -
FR CI 360,805 FOURTH 2003 EXCH RATE P - -
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS
VALUE OF
TYPE OF TYPE OF PROTECTED
DERIVATIVE CONTRACT ITEM ACCOUNTS AFFECTED
ASSETS/LIABILITIES EFFECT ON RESULT
NAME AMOUNT REALIZED NOT REALIZED
------- ------- ---------- ------------ ---------- -------- ------------
FR CI - LIABILITIES 895,101 -895,101 -
FR CI - LIABILITIES 3,159,028 -3,159,028 -
FR CCPE 660,970 LIABILITIES 87,616 -6,446 -
FR CCPE 660,970 LIABILITIES 87,710 -6,540 -
FR CCPE 1,321,940 LIABILITIES 132,403 -11,763 -
FR CCPE 660,970 LIABILITIES 66,486 -6,166 -
FR CI 1,321,940 LIABILITIES 141,924 -6,944 -
FR CI - LIABILITIES 140,658 -140,658 -
FR CI - LIABILITIES 68,875 -68,875 -
FR CI - LIABILITIES 126,305 -126,305 -
FR CI - LIABILITIES 31,576 -31,576 -
FR CI - LIABILITIES 25,517 -25,517 -
FR CI - LIABILITIES 25,517 -25,517 -
FR CI - LIABILITIES 33,391 -33,391 -
FR CI - LIABILITIES 33,953 -33,953 -
67
35. Contingencies and Restrictions
CONTINGENCIES AND COMMITMENTS
As of September 30, 2003, there are a guarantees delivered in the amount of Th
Ch$ 7,944 (Th Ch$ 7,938 in 2002), according to the detail in the attached
chart.
LAWSUITS OR OTHER LEGAL ACTIONS THE COMPANY IS INVOLVED IN
As of September 30, 2003 and 2002 there are lawsuits and other legal actions
pending 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, there are certain financial
obligations mentioned as follows:
a) TOTAL CONSOLIDATED DEBT TO CAPITALIZATION RATIO
Cristalerias de Chile S.A will not allow the Total Consolidated Debt to
Capitalization Ratio exceed the 0.45 to 1.0 ratio at any time.
Capitalization is defined as the sum of Net Worth plus Minority Interest plus
total consolidated debt.
b) TOTAL CONSOLIDATED DEBT TO EBITDA RATIO
Cristalerias de Chile S.A will not allow the Net Consolidated Debt to EBITDA
ratio to exceed the 2.5 to 1.0 ratio at any time.
Consolidated EBITDA is defined as the following: operating income plus
depreciation and amortization, plus non-cash charges (as long as they have
been deduced whe determining operating income) and cash income from interests
minus non-cash credits (as long as they have been added when determining
operating income), in each case for each period.
c) INTEREST COVERAGE RATIO
Cristalerias de Chile S.A. will not allow the Interest Coverage Ratio to be
lower than the following ratios during the following periods: 3.5 from January
01 2001 to December 31, 2002; 4.0 from January 01, 2003 onwards.
Interest coverage at the day of determination is defined as the ratio between
unconsolidated EBITDA for the period of four consecutive fiscal quarters that
end on or most recently ended before, that date; and interest expenses for
that period.
d) NET EQUITY
Cristalerias de Chile S.A. should maintain a minimum amount of UF 10,000,000.
68
Cristalerias de Chile S.A. complies with 100% of the restrictions agreed
with the creditor banks.
II. BOND ISSUE
The bond issue contract signed on May 29, 2002 with Banco Chile as the bonds
owners' representative, establishes among others the following obligations:
a) Financial Indicators
Individual Balance: Indebtedness no higher than 1.2 times.
Consolidate Balance: Indebtedness no higher than 1.4 times.
b) Insurances for the Company and its subsidiaries' fixed assets.
c) The operations refered to by art. 44 and 89 of law 18,046 must be
carried out according to the conditions that these establish.
d) Other minor restrictions related with the bond issue contract.
Cristalerias de Chile S.A. complies with 100% of restrictions agreed with the
bonds' creditors.
OTHER CONTINGENCIES
As of September 30, 2003 and 2002, management is not aware of any other
contingencies that could affect the company.
69
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS DIRECT GUARANTEES
NAME ASSETS COMMITTED
CREDITOR OF GUARANTEE DEBTOR RELATIONSHIP TYPE OF GUARANTEE TYPE BOOK VALUE
--------------------- ------ ------------ ----------------- ---- ----------
EDIFICIO METROPOLIS AGF CRISTALERIAS DE CHILE COMMERCIAL TIME DEPOSIT FLOOR 7,944
S.A.
BANCO SANTANDER RED TELEVISIVA MEGAVISION COMMERCIAL MORTGAGE LAND 3,503,419
SCOTIABANK RED TELEVISIVA MEGAVISION COMMERCIAL PLEDGE TV EQUIP 238,310
BANCO CREDITO E RED TELEVISIVA MEGAVISION COMMERCIAL MORTGAGE TV EQUIP 58,536
INVERSIONES
SUNDRY CLIENTS RED TELEVISIVA MEGAVISION COMMERCIAL ADVERTISING - 0
GRUPO TELEVISA S.A. RED TELEVISIVA MEGAVISION COMMERCIAL PLEDGE SHARES 0
CREDITOR OF GUARANTEE DEBTOR RELATIONSHIP TYPE OF GUARANTEE ASSETS COMMITTED
NAME
BALANCES PENDING PAYMENT
AS OF CLOSING DATE OF
FINANCIAL STATEMENTS
09/30/2003 09/30/2002 09/30/2004 ASSETS 09/30/2005 ASSETS 09/30/2006 ASSETS
---------- ---------- ---------- ------ ---------- ------- ---------- ------
EDIFICIO METROPOLIS AGF 7,944 7,938 0 0 0 0 7,944 0
BANCO SANTANDER 1,847,649 2,086,212 471,630 0 458,673 0 458,673 0
SCOTIABANK 2,073,691 2,481,430 447,011 0 406,670 0 406,670 0
BANCO CREDITO E 424,337 593,316 170,149 0 169,460 0 84,728 0
INVERSIONES
SUNDRY CLIENTS 9,869,662 9,726,862 0 0 0 0 0 0
GRUPO TELEVISA S.A. 0 2,314,333 0 0 0 0 0 0
70
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS
INDIRECT GUARANTEES
NAME ASSETS COMMITTED
CREDITOR OF GUARANTEE DEBTOR RELATIONSHIP TYPE OF GUARANTEE TYPE BOOK VALUE
--------------------- ------ ------------ ----------------- ---- ----------
Societe des RAYEN CURA S.A.I.C. AFFILIATE SOLIDARY 0 0
Participations
Financieres et
Industrielles
Envases CMF guarantee CRISTALERIAS DE AFFILIATE SOLIDARY 0 0
P.I.A.S CHILE S.A.
BALANCES PENDING PAYMENT
AS OF CLOSING DATE OF
FINANCIAL STATEMENTS
09/30/2003 09/30/2002 09/30/2004 ASSETS 09/30/2005 ASSETS 09/30/2006 ASSETS
---------- ---------- ---------- ------ ---------- ------- ---------- ------
Societe des 2,665,031 3,993,977 761,437 0 761,437 0 1,142,157 0
Participations
Financieres et
Industrielles
Envases CMF guarantee 226,849 0 0 0 0 0 226,849 0
P.I.A.S
71
CRISTALERIAS DE CHILE S.A.
NOTE 35: Contingencies and Restrictions
Trials
Court Cause Rol Origin Stage Committed amount
----- --------- ------ ----- ----------------
12 3025-1997 Civil Given sentence in first verdict 100,000
16 4822-1999 Civil Given sentence in first verdict 10,000
1 1242-2000 Labor First verdict pending 10,000
5 3468-2001 Labor First verdict pending 3,000
1 4391-2003 Labor First verdict pending 2,100
1 3538-2000 NTVC Sight and verdict pending 900
72
36. Guarantees obtained from third parties
As of September 30, 2003 and 2002 the company has received guarantees from
third parties that are shown below:
Item
2003 2002
ThCh$ ThCh$
----- -----
Rental of Property BankBoston (UF 367.69) 0 6,230
Rental of Property to Telecomunicaciones
Cono Sur Ltda. (UF 130) 2,203 2,201
Rental of Property Office AGF Building (UF 365.9) 6,201 3,979
Rental of Property Office Metropolis (UF 189.2) 3,206 0
Rental of Property Office Banco Security 5,152 0
Sight drafts suppliers 1,674 1,423
Installation of Buin Tanks (Tersanoix S.A.) 155,112 286,431
Purchase of vine stem cuttings and plants (Intelmaq) 35,051 44,520
Underground materials storehouse Buin Salfa Montajes 31,834 33,293
Grape purchase 1,048,057 299,927
Buin Casino Construction 31,688 0
------- -------
1,320,178 678,004
73
37. Local and Foreign Currency
Charts attached show the foreign currency balance as of September 30, 2003 and
2002.
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY
ASSETS
Amount
Items Currency 09302003 09302002
----- -------- -------- --------
Current Assets
Available funds Nonadjust. Ch$ 1,506,586 2,671,539
Other currencies 141,817 514,645
Dollars 228,115 32,747,344
Euros 5,179 0
Argentine Peso 13,374 0
Time deposits Dollars 0 0
Adjustable Ch$ 5,261,345 7,214,531
Nonadjust Ch$ 1,661,839 0
Marketable Securities Dollars 4,503,878 4,516,458
Adjustable Ch$ 59,903,258 8,222,994
Sales receivable Nonadjust Ch$ 30,598,884 28,050,343
Dollars 4,460,659 4,289,899
Euros 3,166,147 0
Other currencies 2,149,433 5,245,124
Argentine Peso 194,124 0
Documents Receivable Nonadjust. Ch$ 4,567,097 5,211,778
Dollars 0 148,193
Other currencies 16,000 29,734
Sundry Debtors Nonadjust. Ch$ 628,451 434,670
Adjustable Ch$ 78,002 531,984
Dollars 747,036 21,986
Other currencies 98,693 32,815
Documentos and Accts. Receivable Dollars 64,443 0
Nonadjust. Ch$ 425,388 463,521
Adjustable Ch$ 254,322 0
Inventory Adjustable Ch$ 30,836,627 5,300,724
Nonadjust. Ch$ 447,191 25,644,577
Dollars 4,544,445 3,901,992
Other currencies 660,403 558,576
Taxes Receivable Nonadjust. Ch$ 0 0
Adjustable Ch$ 2,622,506 473,437
Other currencies 38,152 0
Argentine Peso 20,921 0
Prepaid expenses Adjustable Ch$ 922,495 727,465
Nonadjust. Ch$ 229,286 169,459
Dollars 220,725 182,418
Argentine Peso 15,660 0
Deferred Taxes Nonadjust. Ch$ 1,432,239 1,650,350
Adjustable Ch$ 0 0
Other Current Assets Nonadjust. Ch$ 2,622,831 6,558,430
Adjustable Ch$ 1,564,362 5,115,555
Dollars 4,746,725 31,728,483
Fixed Assets
FIXED ASSETS Adjustable Ch$ 138,675,566 130,156,094
Other Assets
Investments in related companies Adjustable Ch$ 105,659,811 95,775,981
Dollars 0 17,079,169
Investments in other companies Adjustable Ch$ 827,235 1,319,838
Negative Goodwill Adjustable Ch$ 9,607,498 4,433,603
Dollars 0 5,937,234
74
Longterm debtors Adjustable Ch$ 161,890 205,277
Documents receivable in rel.companies Nonadjust. Ch$ 2,898 1,445
Intangibles Adjustable Ch$ 11,779,991 11,747,268
Amortization Adjustable Ch$ -1,155,149 969,802
Other Adjustable Ch$ 4,128,304 4,623,624
Nonadjust. Ch$ 221,654 706,171
Dollars 9,715,501 13,082,898
Argentine Peso 457,973 277,602
Long-term debtors Dollars 66,097 0
Intangibles Argentine Peso 34,565 0
Total Assets
Nonadjust. Ch$ 44,344,344 71,562,283
Other currencies 3,104,498 6,380,894
Dollars 84,697,004 117,342,610
Euros 3,171,326 0
Argentine Peso 736,617 277,602
Adjustable Ch$ 315,728,683 271,172,037
75
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY CURRENT LIABILITIES
ITEM Currency Up to 90 days
09.30.2003 09.30.2002
Amount Avg.Annual Amount Avg.Annual
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
-------- --------- -------- ---------
Current Liabilities
Short-term obligations with banks Nonadjust. Ch$ 0 0 1,031,487 3.72
and financial institutions Other currencies 4,446 2.76 0 0
Dollars 133,115 1.88 75,872 2.6
Long-term obligations with banks Adjust. Ch$ 136,073 1.925 1,086,750 4.22
and financial institutions Adjust. Ch$ 807,575 4.43 0 0
Dollars 0 0 519,939 5.57
Dollars 788,735 1.74 3,210 3.0
Nonadjust. Ch$ 134,457 4.94 0 0
Obligations with the public Adjust. Ch$ 365,391 6.25 0 0
Adjust. Ch$ 0 0 0 0
Adjust. Ch$ 0 0 216,303 0
Longterm obligations with 1 year Adjust. Ch$ 0 0 0 0
maturity Adjust. Ch$ 0 0 0 0
Dollars 8,025 11 19,413 11
Dividends payable Nonadjust. Ch$ 505,634 0 552,853 0
Accounts payable Nonadjust. Ch$ 9,103,531 0 9,743,314 0
Dollars 1,481,820 0 1,109,652 0
Euros 15,223 0 0 0
Other currencies 4,956 0 155,421 0
Argentine Peso 93,637 0 0 0
Documents Payable Dollars 2,030,024 0 1,314,668 0
Adjust. Ch$ 14,239 0 41,139 0
Other currencies 173,852 0 208,588 0
Euros 1,813 0 0 0
Argentine Peso 106,737 0 0 0
Sundry Creditors Dollars 742,159 0 0 0
Nonadjust. Ch$ 306,585 0 2,022,423 0
Withholdings Nonadjust. Ch$ 3,056,563 0 2,474,179 0
Argentine Peso 22,144 0 0 0
Other currencies 0 0 11,490 0
Prepaid income Nonadjust. Ch$ 4,919,157 0 2,836,481 0
Docts and accts payable to rel co. Adjust. Ch$ 59,332 0 0 0
Nonadjust. Ch$ 713,213 0 775,446 0
Dollars 0 0 0 0
Income Tax Nonadjust. Ch$ 0 0 0 0
Provisions Adjust. Ch$ 266,967 0 537,389 0
Euros 694 0 0 0
Dollars 656,412 0 3,186,561 0
Nonadjust. Ch$ 6,510,916 0 7,668,247 0
Argentine Peso 57,216 0 0 0
Other currencies 187,368 0 1,188,570 0
Other Current Liabilities Dollars 118,378 0 0 0
Adjust. Ch$ 4,937,682 0 0 0
Total Current Liabilities
Nonadjust Ch$ 25,250,056 27,104,430
Other currencies 370,622 1,564,069
Dollars 5,958,668 6,229,315
Adjust. Ch$ 6,587,799 1,881,581
Euros 17,730 0
Argentine Peso 279,734 0
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY CURRENT LIABILITIES
ITEM Currency 90 Days to 1 Year
09.30.2003 09.30.2002
Amount Avg.Annual Amount Avg.Annual
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
-------- --------- -------- ---------
Current Liabilities
Short-term obligations with banks Nonadjust. Ch$ 0 0 0 0
and financial institutions Other currencies 13,337 2.76 9,755 3.09
Dollars 0 0 0 0
Long-term obligations with banks Adjust. Ch$ 0 0 0 0
and financial institutions Adjust. Ch$ 598,725 4.43 0 0
Dollars 0 0 2,454,206 3.66
Dollars 1,272,003 1.90 22,012,661 3.0
Nonadjust. Ch$ 134,457 4.94 0 0
Obligations with the public Adjust. Ch$ 0 0 340,062 4.75
Adjust. Ch$ 378,336 4.75 434,896 5.80
Adjust. Ch$ 397,253 5.80 581,937 0
Longterm obligations with 1 year Adjust. Ch$ 1,223 7.0 0 0
maturity Adjust. Ch$ 0 0 1,240 7.0
Dollars 190,030 10.98 154,004 11
Dividends payable Nonadjust. Ch$ 0 0 0 0
Accounts payable Nonadjust. Ch$ 94,640 0 0 0
Dollars 1,230,796 0 2,304,754 0
Euros 0 0 0 0
Other currencies 0 0 0 0
Argentine Peso 0 0 0 0
Documents Payable Dollars 122,309 0 141,379 0
Adjust. Ch$ 14,238 0 52,499 0
Other currencies 0 0 0 0
Euros 0 0 0 0
Argentine Peso 0 0 0 0
Sundry Creditors Dollars 0 0 0 0
Nonadjust. Ch$ 0 0 0 0
Withholdings Nonadjust. Ch$ 0 0 0 0
Argentine Peso 0 0 0 0
Other currencies 0 0 0 0
Prepaid income Nonadjust. Ch$ 0 0 0 0
76
Docts and accts payable to rel co. Adjust. Ch$ 0 0 0 0
Nonadjust. Ch$ 0 0 0 0
Dollars 64,443 0 0 0
Income Tax Nonadjust. Ch$ 0 0 1,046,016 0
Provisions Adjust. Ch$ 0 0 0 0
Euros 562,508 0 0 0
Dollars 682,454 0 0 0
Nonadjust. Ch$ 396,135 0 181,111 0
Argentine Peso 0 0 0 0
Other currencies 343,620 0 0 0
Other Current Liabilities Dollars 0 0 0 0
Adjust. Ch$ 0 0 0
Total Current Liabilities
Nonadjust Ch$ 625,232 - 1,227,127 -
Other currencies 356,957 - 9,755 -
Dollars 3,562,035 - 27,067,004 -
Adjust. Ch$ 1,389,775 - 1,410,634 -
Euros 562,508 - 0 -
Argentine Peso 0 - 0 -
77
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY LONGTERM LIABILITIES CURRENT PERIOD 09302003
1-3 Years 3-5 years
Amount Average Amount Average
ITEM Currency Thou Ch$ Interest Rate Thou Ch$ Interest Rate
---- -------- -------- ------------- -------- -------------
Obligations with Banks and Dollars 8,262,125 1.925 24,786,375 1.925
Financial Institutions Dollars 1,022,778 1.84 0 0
Argentine Peso 57,464 1.75 0 0
Nonadjust. Ch$ 672,286 4.94 0 0
Adjustable Ch$ 4,072,967 4.43 406,670 4.43
Obligations with the public Adjustable Ch$ 16,946,030 4.75 16,946,030 4.75
Adjustable Ch$ 0 0 0 0
Adjustable Ch$ 3,389,206 6.25 0 0
Long-term creditors Dollars 132,917 11.06 0 0
Dollars 87,439 11.16 4,252 8.6
Adjustable Ch$ 38,066 0 0 0
Nonadjust. Ch$ 97,849 0 0 0
Deferred taxes Adjustable Ch$ 2,327,556 0 0 0
Nonadjust. Ch$ 2,388,179 0 0 0
Long-term provisions Dollars 3,514,837 0 0 0
Adjustable Ch$ 4,108,548 0 0 0
Total long-term liabilities
Dollars 13,020,096 - 24,790,627 -
Argentine Peso 57,464 - 0 -
Nonadjust. Ch$ 3,158,314 - 0 -
Adjustable Ch$ 30,882,373 - 17,352,700 -
5-10 Years More than 10 years
Amount Average Amount Average
ITEM Currency hou Ch$ Interest Rate Thou Ch$ Interest Rate
---- -------- ------- ------------- -------- -------------
Obligations with Banks and Dollars 0 0 0 0
Financial Institutions Dollars 0 0 0 0
Argentine Peso 0 0 0 0
Nonadjust. Ch$ 0 0 0 0
Adjustable Ch$ 0 0 0 0
Obligations with the public Adjustable Ch$ 0 0 0 0
Adjustable Ch$ 4,209,191 5.8 31,377,472 5.8
Adjustable Ch$ 0 0 16,946,030 6.25
Long-term creditors Dollars 0 0 0 0
Dollars 0 0 0 0
Adjustable Ch$ 0 0 0 0
Nonadjust. Ch$ 0 0 0 0
Deferred taxes Adjustable Ch$ 0 0 0 0
Nonadjust. Ch$ 0 0 0 0
Long-term provisions Dollars 0 0 0 0
Adjustable Ch$ 0 0 0 0
Total long-term liabilities
Dollars 0 - 0
Argentine Peso 0 - 0
Nonadjust. Ch$ 0 - 0
Adjustable Ch$ 4,209,191 - 48,323,502
78
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY
LONGTERM LIABILITIES PREVIOUS PERIOD 09302002
1-3 Years 3-5 Years
Amount Average Amount Average
ITEM Currency Thou Ch$ Interest Rate Thou Ch$ Interest Rate
---- -------- -------- ------------- -------- -------------
Obligations with banks Dollars 16,509,497 3 0 0
and financial institutions Dollars 3,578,165 329 0 0
Dollars 3,578,143 422 2,220,274 0
Other currencies 24,142 342 22,634 412
Documents payable Adjustable Ch$ 28,454 0 0 0
Dollars 131,629 0 0 0
Obligations with public Adjustable Ch$ 8,466,113 475 16,932,226 475
Adjustable Ch$ 0 0 0 0
Adjustable Ch$ 0 0 3,386,445 614
Long-term creditors Dollars 870,420 1106 149,504 1106
Dollar 217,091 11 64,344 11
Dollar 1,906,847 0 0 0
Adjustable Ch$ 47,309 0 0 0
Adjustable Ch$ 2,439 7 1,219 7
Long-Term provisions Dollars 1,570,502 0 0 0
Adjustable Ch$ 3,873,652 0 0 0
Deferred taxes Nonadjust. Ch$ 1,240,347 0 0 0
Total long-term liabilities
Dollars 28,362,294 - 2,434,122 -
Other currencies 24,142 - 22,634 -
Adjustable Ch$ 12,417,967 - 20,319,890 -
Nonadjust. Ch$ 1,240,347 - 0 -
5-10 Years More than 10 years
Amount Average Amount Average
ITEM Currency Thou Ch$ Interest Rate Thou Ch$ Interest Rate
---- -------- -------- ------------- -------- -------------
Obligations with banks Dollars 0 0 0 0
and financial institutions Dollars 0 0 0 0
Dollars 0 0 0 0
Other currencies 2,594 0 0 0
Documents payable Adjustable Ch$ 0 0 0 0
Dollars 0 0 0 0
Obligations with public Adjustable Ch$ 8,466,113 475 0 0
Adjustable Ch$ 4,741,023 58 30,816,651 58
Adjustable Ch$ 0 0 16,932,226 614
Long-term creditors Dollars 0 0 0 0
Dollar 2,543 11 0 0
Dollar 0 0 0 0
Adjustable Ch$ 0 0 0 0
Adjustable Ch$ 0 0 0 0
Long-Term provisions Dollars 0 0 0 0
Adjustable Ch$ 0 0 0 0
Deferred taxes Nonadjust. Ch$ 1,994,998 0 0 0
Total long-term liabilities
Dollars 2,543 - 0 -
Other currencies 2,594 - 0 -
Adjustable Ch$ 13,207,136 - 47,748,877 -
Nonadjust. Ch$ 1,994,998 - 0 -
79
38. Penalties
The SVS or other administrative authorities have not imposed any penalties
during the 2003 and 2002 fiscal years to the Company, its Board nor
administrative personnel.
80
39. Subsequent Events
On October 15, 2003, the Parent Company paid interim dividend No. 155 of Ch$
15 per share, over 64,000,000 shares.
Between the closing date of the financial statements and the issue date of the
present report no more subsequent events that could affect significantly the
Company's economic and financial condition have been registered.
81
40. COMPANIES UNDER SPECIAL NORMS
Not applicable.
82
41. ENVIRONMENT
On its ongoing concern for environmental preservation, as of September 30,
2003 the Parent Company has effected investments of Th Ch$ 206,027,
corresponding mainly to the purchase of NOX emission treatment equipment,
installed on new Furnace B.
As of September 30, 2002, investments of Th Ch$ 189,302 were made on the
repair of an electrostatic precipitator to filter the gases discharged from
our smelting processes.
The subsidiary S.A. Vina Santa Rita has invested Th Ch$ 35,573 as of September
2003 (Th Ch$ 29,589 in 2002), to comply with the ordinances and laws related
to Industrial Process and Installations.
83
42. STOCK TRANSACTIONS
During the 2003 and 2002 fiscal years the Parent Comoany's members of the
board, controlling stockholders, related individuals and entities did not
carry out stock transactions.
84
43. DISTRIBUTION OF SHAREHOLDERS
The distribution of stockholders as of September 30, 2003 and 2002 is the
following:
% of Shareholding No. of Shareholders
TYPE OF SHAREHOLDER 2003 2002 2003 2002
------------------- ---- ---- ---- ----
10% or more shareholding 34.03 34.03 1 1
Less than 10% shareholding
with investment equal to or
higher than 200 UF 65.83 65.83 263 262
Less than 10% shareholding
with investment lower than
200 UF 0.14 0.14 774 817
------ ------ ----- -----
TOTAL 100.00 100.00 1,038 1,080
CONTROLLER OF THE COMPANY 52.14 52.14 3 3
85
44. BOARD REMUNERATIONS
As of September 30, 2003 and 2002 Th Ch$ 901,096 and Th Ch$ 901,937 were paid
for honoraries and participation respectively, as follows:
2003 2002
ThCh$ ThCh$
----- -----
Participation of previous fiscal year profits 890,764 890,583
Session assistance 4,190 4,233
Board Committee 1,344 1,039
Honoraries paid 4,798 6,082
------- -------
TOTAL 901,096 901,937
On the other hand, Th Ch$ 227,786 have been provisioned for participation of
year 2003 (Th Ch$ 800,062 in 2002).
86
45. TIME DEPOSITS
As of September 30, 2003 and 2002 the Company presents the following
information:
INSTITUTION CURRENCY 2003 2002
Th$ Th$
Banco de Santiago US$ 0 0
Banco Deutsche Bank Chile S.A. US$ 0 0
Banco Santander New York US$ 0 0
Banco Santander Santiago US$ 5,261,345 0
Banco Chile US$ 0
Banco de Credito e Inversiones US$ 0
Banco Scotiabank US$ 0 0
Banco Edwards US$ 0 0
Banco Santiago. UF 0 0
BankBoston $ 369,675 0
Banco de Santander Santiago $ 0 7,214,531
Banco de Chile $ 1,292,164
--------- ---------
TOTAL 6,923,184 7,214,531
87
RELEVANT EVENTS
As of September 30, 2003 there are no relevant events registered to comment.
88
RATIO ANALYSIS OF THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2003
CONSOLIDATED FINANCIAL INDICATORS
09-30-2003 09-30-2002 12-31-2002
Liquidity
Current liquidity times 3.82 2.74 4.51
Acid ratio times 2.88 2.16 3.61
Indebtedness
Leverage ratio times 0.82 0.82 0.80
Short-term debt % 24.1 34.2 21.3
Long-term debt % 75.9 65.8 78.7
Interest Expenses Coverage times 1.69 6.16 4.81
Activity
Total assets MM Ch$ 451,782 466,735 461,528
Investments MM Ch$ 25,315 15,867 18,409
Disposal of property MM Ch$ 315 94 242
Inventory turnover Times n.a. n.a. n.a.
Inventory permanence Days n.a. n.a. n.a.
Results
Sales MM Ch$ 123,648 116,809 164,278
Cost of sales MM Ch$ 78,108 68,640 96,673
Operating income MM Ch$ 27,107 30,178 42,443
Interest expenses MM Ch$ 5,180 4,631 6,976
Nonoperating result MM Ch$ (21,364) (4,340) (13,262)
E.B.I.T.D.A. MM Ch$ 20,096 39,262 48,059
Aftertax income MM Ch$ 2,416 16,448 18,014
Profitability
Return on equity % 1.0 7.1 7.9
Return on assets % 0.5 3.7 4.1
Return on operating assets % 11.8 13.7 19.4
Income per share $ 37.7 257.0 281.5
Return on dividends % 1.9 3.4 2.9
Current liquidity: Ratio of current assets to current liabilities.
Acid ratio: Ratio of uncommitted funds to current liabilities.
Leverage ratio: Ratio of total liabilities to net worth.
Interest Expenses Coverage: Result before taxes and interest divided
by interest expenses.
Inventory turnover: Ratio between cost of sales 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: Result before taxes, interest, taxes,
depreciation and 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.
89
The main trends observed in the 2003 fiscal year indicators are:
LIQUIDITY INDICES
An increase in the index can be observed with respect to September 2002 in the
liquidity index as a consequence the payment of short-term bank debt,
repayment of 50% of a syndicated loan, and that part of the funds obtained
from the long term bonds issue of August 2002 was placed in short-term
financial instruments.
With respect to December 2002, a slight decrease can be observed in the index
due to the decrease of current assets in turn due to investments in related
comoanies and payments of fixed asset investments.
INDEBTEDNESS INDICES
The leverage ratio has kept stable with respect to previous periods.
The distribution of short and long-term debt shows a decrease in the
short-term debt, due to financing decisions carried out in 2002 fiscal year,
which finished with the re-structuring of the syndicated loan.
The interest expenses coverage ratio has registered a slight decrease with
respect to the previous year due to higher interest expenses originated since
August 2002 onwards for bonds issued, and lower income in the present fiscal
year.
PROFITABILITY INDICES
Equity and asset profitability indeces show a decrease with respect to
September and December 2002, due to a lower net income in 2003.
Likewise, despite better results at related companies, lower non-operating
expenses and lower price level restatements, an important decrease is shown by
the non-operating result compared with the previous period, due to a negative
exchange difference of Th Ch$ 12,269.
On the other hand, return of dividends index shows a decrease with respect to
the previous year, fundamentaly due to an increase in the market price of the
Company's shares in the stock exchange.
2. DIFFERENCE BETWEEN BOOK VALUE AND MARKET VALUE OF MAIN ASSETS.
The financial statements as of September 30, 2003 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 September 30, 2003 there were financial investments in shares recorded
in the accounting according to their purchase price at Ch$ 4,163 million whose
market value on the same date was Ch$ 6,072 million.
90
3. RESULTS AS OF SEPTEMBER 2003
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$123,648 million, 5.9% over 2002.
This sales increase results from higher sales in the glass container business
(6.8%), CIECSA (12.4%), and Santa Rita (0.6%). Consolidated operating income
reached Ch$ 27,107 million, 10.2% below 2002, of which Ch$17,356 million were
contributed by the glass container business, Ch$ 7,863 million by Santa Rita
and Ch$ 1,808 million by CIECSA.
The Company's net profit was Ch$ 2,416 million, compared with Ch$ 16,448
million in the same period of 2002. This result is explained by a higher
non-operting loss mainly due to losses from exchange differences and lower
operting results at CIECSA and Vina Santa Rita.
In 2003 the Company registered a consolidated non-operting loss of Ch$ 21,364
million, compared with a Ch$ 4,340 million loss in 2002. The former was mainly
due to a loss from exchange differences (Ch$ 12,269 million loss in 2003
compared with a Ch$ 11,661 million income in 2002), partially compensated by a
lower net loss from unconsolidated subsidiaries that passed from Ch$ 9,425
million in 2002 to Ch$ 3,959 million in 2003, mainly due to better results at
Rayen Cura, CMF and Vina Los Vascos, and a lower loss at Metropolis-Intercom.
The net loss from subsidiaries include a Ch$ 3,128 million charge in 2003 (Ch$
3,109 million in 2002), 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$ 54,533 million as of September
2003, which represents a 6.8% increase compared to the previous fiscal year.
Volumes sold increased by 6.7% reaching 185,976 tons, mainly due to higher
sales of bottles for the wine, non-returnable beer, returnable soft drinks and
liquor markets.
Operating income reached Ch$ 17,356 million, compared to Ch$ 17,508 million in
2002. Higher costs of sales are due to products that had to be imported due to
the reconstruction of furnace B.
Non-operating result was a loss of Ch$14,052 million in 2003 (Ch$ 2,370
million income in 2002). During 2003 a Ch$ 9,902 million loss was recorded
from exchange differences (Ch$ 8,371 million income in 2002). In addition
lower income was registered from Vina Santa Rita and CIECSA, and higher
interest expenses. The former was compensated by higher income from
Cristalchile Inversiones (owner of 40% of Rayen Cura) and Envases CMF, and a
lower loss in Cristalchile Comunicaciones (owner of 50% of
Metropolis-Intercom).
3c. Results in Subsidiaries
91
As of September 30, 2003, Santa Rita's net income amounted Ch$ 3,735 million
(Ch$ 8,388 million in 2002). In the local market, volumes increased by 1.9%
and prices dropped by 4.4% in real terms, as a result of sharp competition.
During the period, exports at US$ 41.9 million (US$ 40.0 million in 2002)
represented 54.2% of total revenues. The operating income reached Ch$7,863
million, compared to Ch $ 9,184 million in 2002, mainly due to lower prices in
the domestic market. The average price in dollars per case for the export
market for Santa Rita was US$ 33.0 (US$ 30.5 in 2002) whereas the average
price for the industry was US$ 23.6 per case (US$ 23.2 in 2002). Santa Rita
recorded a Ch$ 3,177 million non-operating loss, compared to a Ch$ 1,274
million non-operating income in 2002, mainly due a loss from exchange
differences.
Red Televisiva Megavision, CIECSA's main subsidiary, registered a Ch$1,762
million operating income, compared with an operating profit of Ch$ 3,454
million in 2002, due to an increase in costs from higher internal productions.
MEGA reached a 23.0% audience share during the period (25.9% in 2002)1. Net
sales increased by 11.9% reaching Ch$ 18,530 million, due to an increase in
live programming. As of September 2003, MEGA had a net income of Ch$ 1,026
million (Ch$ 1,729 million in 2002). CIECSA had a Ch$ 826 million net income,
compared to a Ch$ 1,063 million net income the previous year.
Envases CMF S.A. registered a Ch$ 713 million net income in 2003 compared with
a Ch$464 million net income in 2002. The company increased sales by 1.8%,
reaching Ch$ 25,035 million during the period. Sales volume increased by 0.4%,
reaching 16,697 tons. Operating income reached Ch$ 2,237 million, 17.6% higher
than the that obtained in 2002, mainly explained by higher operating
efficiencies and the sale of better margin products.
In the cable TV business, Cristalchile Comunicaciones S.A. (99.99% owned by
Cristalerias), is the owner of 50% of Cordillera Comunicaciones Ltda., which
in turn is the owner of 95.60% of Metropolis-Intercom S.A.
As of September 30, 2003, Metropolis-Intercom S.A. registered sales of Ch$
33,763 million compared with Ch$ 35,227 million the previous year.
Metropolis-Intercom had a net loss of Ch$ 7,394 million compared with a net
loss of Ch$ 10,525 million in 2002. This result includes a depreciation charge
of Ch$ 10,040 million (Ch$ 8,637 million in 2002) corresponding to the HFC
network adquired in July 2000. The company ended the period with 236,000
subscribers of the basic service (239,000 in 2002) and 32,000 subscribers of
bradband services, 63.7% higher than in 2002.
As a result of the abovementioned and the negative goodwill amortization
charge through Cordillera Comunicaciones of Ch$ 3,128 million in the period
(Ch$ 3,109 million in 2002), Cristalchile Comunicaciones recorded a net loss of
Ch$ 5,250 million (net loss of Ch$ 6,846 in 2002).
4. CASH FLOW STATEMENT
Through January/September 2003 a total net negative flow of Ch $14,721 million
was generated, which is explained by a positive flow generated by operating
activities of Ch$ 26,447 million which were partially offset by a negative
financing flows of Ch$ 10,957 million, and a negative flow of investment
activities of Ch$ 28,911 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 by Ch$
9,030 million and net loans and Obligations with public for Ch$ 2,317 million.
--------
1 Measured between 7:30AM and 1:30AM; i.e: 18 hours daily, Monday through
Sunday.
92
The negative investment flow is mainly explained by the incorporation of fixed
assets of Ch$ 23,204 million and permanent investments for Ch$ 3,933 million
and other investment disbursements for Ch$ 6,212 million, which are financed,
in part, with maturities of future contracts for Ch$ 2,261 million and
redemption of loans to related companies for Ch$ 1,940 million.
The foregoing results in an decrease in the final balance of cash and cash
equivalent, which passed from Ch$ 90,063 million as of December 31, 2002 to
Ch$ 77,608 million as of September 30, 2003.
According to the current regulations of the SVS and the Association of
Accountants of Chile, term deposits and agreements with due date less than 90
days have been considered cash and cash equivalent.
5. 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 September 30, 2003
Short-Term and Long-Term bank liabilities and obligations with the public
totaled Ch$ 134,259 million, which represents 29.7% of the Company's
consolidated assets.
Bank credits totaled Ch$ 43,304 million of which Ch$ 36,477 million
correspond to credits in foreign currency agreed at variable rates related to
the six-month Libor, Ch$ 5,886 million correspond to credits in pesos
adjustable in unidades de fomento (indexed currency units) that are exposed to
changes in the six-month TAB of 90 and 18 days and Ch$ 941 million correspond
to credits in pesos at an annual rate of 4.94%.
Within obligations with the public for Ch$ 90,955, Ch$ 70,254 million
correspond to Bonds issued by the Parent Company and Ch$ 20,701 millon issued
by the subsidiary Vina Santa Rita, both at a fixed interest rate.
As of September 30, 2003, the Company had available funds of Th Ch$ 75,710
million invested in instruments at different time periods like term deposits,
bonds, fixed-rate mutual funds and resale agreements. Bonds for Ch$ 8,870
million with maturity on September 15, 2005 and share investment for Ch$ 4,163
million were no included.
The Company and its subsidiaries do not use secondary financial instruments at
the present time to reduce risk in the event of fluctuations in interest
rates. 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 dollars of US$ 72.8
million, which represent 10.7% of its consolidated assets, and include a
long-term syndicated loan of US$ 50 million in the Parent Company and
Long-Term bank credits in Vina Santa Rita of US$ 4.8 million.
As of September 30 the Company and its Subsidiaries maintain its investments
in Dollars of US$ 119.7 million; in time deposits, bonds and fixed rate mutual
funds. In addition it also has Dollar purchase future contracts of US$ 93.6
million.
93
On the other hand, aproximately 40% of consolidated sales are adjustment to
the exchange rate variation. At the same time, the consolidated costs in
foreing currency represent aproximately 27% of the total costs.
94
RELEVANT EVENTS
None.
95
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 1/1/2003
1.00.01.20 Closing date 9/30/2003
1.00.01.30 Type of Currency Chilean Pesos
1.00.01.40 Type of Financial Statements Individual
1
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. 09-30-03 09-30-02
5.11.00.00 TOTAL CURRENT ASSETS 97,451,558 107,154,618
5.11.10.10 Cash 1,272,998 31,748,979
5.11.10.20 Time deposits 41 5,261,345 5,151,002
5.11.10.30 Marketable securities (net) 4 55,958,523 12,709,728
5.11.10.40 Debtors from sales (net) 5 19,593,606 18,339,804
5.11.10.50 Documents receivable (net) 5 1,836,729 2,437,526
5.11.10.60 Sundry debtors (net) 5 831,745 551,564
5.11.10.70 Doc. & accts receivable 6 2,352,998 3,173,123
related Co.
5.11.10.80 Inventories (net) 7 5,659,975 5,300,724
5.11.10.90 Recoverable taxes 8 1,724,203 153,308
5.11.20.10 Prepaid expenses 205,705 191,047
5.11.20.20 Deferred taxes 8 373,226 621,467
5.11.20.30 Other current assets 10-11 2,380,505 26,776,346
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 78,831,220 70,414,451
5.12.10.00 Land 12 1,507,923 1,507,948
5.12.20.00 High rises & infrastructure 12 22,530,234 18,160,874
5.12.30.00 Machinery & equipment 12 102,731,403 96,136,662
5.12.40.00 Other fixed assets 12 7,565,381 6,809,904
5.12.50.00 Positive goodwill from
technical revaluation of
fixed assets 12 6,619,986 8,637,670
5.12.60.00 Depreciation (minus) 12 (62,123,707) (60,838,607)
5.13.00.00 TOTAL OTHER ASSETS 182,487,675 186,757,757
5.13.10.10 Investment in related companies 14 146,844,040 145,369,715
5.13.10.20 Investment in other companies 0 0
5.13.10.30 Negative goodwill 16 1,939,310 2,111,095
5.13.10.40 Positive goodwill (minus) 0 0
5.13.10.50 Long-term debtors 5 142,826 177,084
5.13.10.60 Doc. & accts receivable 6 21,334,102 24,859,956
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 12,227,397 14,239,907
5.13.20.10 Long-term leasing contracts 0 0
(net)
5.10.00 TOTAL ASSETS 358,770,453 364,326,826
2
LIABILITIES
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
LIABILITIES NOTE No. 09-30-03 09-30-02
5.21.00.00 TOTAL CURRENT LIABILITIES 18,683,496 34,347,401
5.21.10.10 Short-term oblig. Banks &
Fin. Inst. 0 0
5.21.10.20 Short-term portion - Long-term
oblig. Banks & Financial Institutions 19 136,073 22,015,872
5.21.10.30 Obligations with the public 0 0
(notes)
5.21.20.40 Short-term portion oblig with 775,589 774,957
public
5.21.10.50 Long-term oblig. due within 1 0 0
year
5.21.10.60 Dividends payable 504,791 552,151
5.21.10.70 Accounts payable 2,481,887 1,851,240
5.21.10.80 Notes payable 2,063,207 1,161,615
5.21.10.90 Sundry creditors 1,009,018 353,452
5.21.20.10 Notes & accts payable related 6 798,115 704,699
Co.
5.21.20.20 Provisions 23 5,355,462 5,395,482
5.21.20.30 Withholdings 1,505,225 1,537,933
5.21.20.40 Income tax 0 0
5.21.20.50 Earned income 0 0
5.21.20.60 Deferred taxes 0 0
5.21.20.70 Other current liabilities 20 4,054,129 0
5.22.00.00 TOTAL LONG-TERM LIABILITIES 112,707,403 94,210,381
5.22.10.00 Oblig with Banks & Financial 21 33,048,500 16,509,497
Inst.
5.22.20.00 Long-term oblig with public 69,478,723 69,422,126
(bonds)
5.22.30.00 Long-term notes payable 0 0
5.22.40.00 Long-term sundry debtors 168,616 1,067,234
5.22.50.00 Long-term notes & accts.
payable related companies 6 0 0
5.22.60.00 Long-term provisions 23 7,623,385 5,444,154
5.22.70.00 Long-term deferred taxes 8 2,388,179 1,767,370
5.22.80.00 Other long-term liabilities 0 0
5.23.00.00 MINORITY INTEREST 0 0
5.24.00.00 TOTAL EQUITY 227,379,554 235,769,044
5. 24.10.00 Paid-in capital 27 64,749,257 64,686,393
5. 24.20.00 Reserve capital revaluation 27 776,991 840,924
5. 24.30.00 Premium in sale of own shares 27 27,929,574 27,930,030
5. 24.40.00 Other reserves 27 8,112,383 11,561,262
5. 24.50.00 Retained earnings (addition
of codes 5.24.51.00 to 5.24.56.00) 27 125,811,349 130,750,435
5.24.51.00 Reserve 27 124,356,319 116,289,293
future dividends
5.24.52.00 Accrued profits 27 0 0
5.24.53.00 Accrued 0 0
losses (minus)
5.24.54.00 Profit (loss) 27 2,415,990 16,447,688
for the year
5.24.55.00 Prov. dividends (960,960) (1,986,546)
(minus)
5.24.56.00 Accr. deficit 27 0 0
dev. period
5.20.00.00 TOTAL LIABILITIES 358,770,453 364,326,826
3
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. 09-30-03 09-30-02
5.31.11.00 OPERATING RESULTS 17,355,539 17,507,574
5.31.11.10 Gross Margin 21,270,776 21,662,830
5.31.11.11 Sales 54,532,725 51,083,334
5.31.11.12 Costs (minus) (33,261,949) (29,420,504)
5.31.11.20 Adm. & sales expenses (3,915,237) (4,155,256)
(minus)
5.31.12.00 NON-OPERATING RESULTS (14,051,799) 2,370,452
5.31.12.10 Interest income 2,005,213 1,519,582
5.31.12.20 Income from invmnts Rel. Co. 14 3,664,360 5,815,658
5.31.12.30 Other non-operating income 28 288,216 484,710
5.31.12.40 Loss invmnts Rel. Co. (-) (5,251,034) (9,599,137)
5.31.12.50 Amortization neg.goodwill (-) 16 (128,813) (128,815)
5.31.12.60 Interest expenses (minus) (3,668,428) (2,908,055)
5.31.12.70 Other non-operat expenses (-) 28 (627,219) (542,429)
5.31.12.80 Price level restatement 29 (432,458) (641,810)
5.31.12.90 Exchange differences 30 (9,901,636) 8,370,748
5.31.10.00 RESULTS BEFORE INCOME TAX 3,303,740 19,878,026
AND EXTRAORDINARY ITEMS
5.31.20.00 INCOME TAX 8 (887,750) (3,430,338)
5.31.30.00 EXTRAORDINARY ITEMS 0 0
5.31.40.00 PROFIT (LOSS) BEFORE 2,415,990 16,447,688
MINORITY INTEREST
5.31.50.00 MINORITY INTEREST 0 0
5.31.00.00 NET INCOME (LOSS) 2,415,990 16,447,688
5.32.00.00 Amortization of positive goodwill 0 0
5.30.00.00 INCOME (LOSS) FOR THE YEAR 6 2,415,990 16,447,688
4
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. 09-30-03 09-30-02
5.41.11.00 NET FLOW FROM OP. ACT. 18,475,490 28,276,573
5.41.11.10 Collection from sales debtors 67,143,231 61,307,619
5.41.11.20 Interests received 2,628,245 7,936,313
5.41.11.30 Dividends & other distributions 1,705,232 1,402,632
funds received
5.41.11.40 Other income 33 898,286 516,841
5.41.11.50 Payments to suppliers & personnel (-) (39,805,632) (34,331,035)
5.41.11.60 Interest paid (minus) (4,327,723) (1,876,694)
5.41.11.70 Income tax paid (minus) (2,217,938) (1,516,970)
5.41.11.80 Other expenses 33 (5,304,575) (663,994)
5.41.11.90 V.A.T. & other taxes (2,243,636) (4,498,139)
5.41.12.00 CASH FLOW FINANCING ACTIVITIES (7,709,435) 20,066,739
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 69,273,018
5.41.12.20 Secured loans from related companies 44,903 0
5.41.12.25 Other loans from related companies 0 0
5.41.12.30 Other financing resources 0 0
5.41.12.35 Dividends paid (minus) (7,754,338) (7,272,397)
5.41.12.40 Capital distributions (minus) 0 0
5.41.12.45 Repayment of loans (minus) 0 (38,052,440)
5.41.12.50 Payment of obligations with the public (-) 0 0
5.41.12.55 Repayment of secured loans from rel Co. (-) 0 0
5.41.12.60 Repayment other loans from related Co. (-) 0 0
5.41.12.65 Share issue payment (minus) 0 0
5.41.12.70 Payment of issue publ oblig (minus) 0 (3,881,442)
5.41.12.75 Other financing payments (minus) 33 0 0
5.41.13.00 CASH FLOW FROM INVESTING ACTIVITIES (23,241,479) 1,441,929
5.41.13.05 Sale of fixed assets 109,688 18,439
5.41.13.10 Sale of permanent investments 0 0
5.41.13.15 Sale of other investments 33 308,240 11,496,549
5.41.13.20 Proceeds secured loans to related Comp. 3,048,370 432,923
5.41.13.25 Proceeds other loans to related companies 0 0
5.41.13.30 Other investment income 33 1,469,229 4,000,707
5.41.13.35 Incorporation of fixed assets (minus) (17,870,660) (7,491,711)
5.41.13.40 Capitalized interests payment (minus) 0 0
5.41.13.45 Permanent Investments (minus) (4,022,544) (391,529)
5.41.13.50 Investments in financial 0 (1,609,915)
instruments (minus)
5.41.13.55 Other loans to related companies (66,929) (3,903,413)
(minus)
5.41.13.60 Other loans to related companies (7,519) (5,170)
(minus)
5.41.13.65 Other distrib of funds on invest 33 (6,209,354) (1,104,951)
activities (-)
5.41.00.00 TOTAL NET CASH FLOW FOR THE PERIOD (12,475,424) 49,785,241
5.42.20.00 EFFECT OF INFLATION ON CASH & CASH EQUIV. (972,685) (668,722)
5.41.00.00 NET CHANGE IN & CASH EQUIVALENT (13,448,109) 49,116,519
5.42.00.00 CASH & CASH EQUI AT BEGINNING OF PERIOD 74,141,343 19,299,552
5.43.00.00 CASH & CASH EQUIV BALANCE AT END OF PERIOD 60,693,234 68,416,071
5
INCOME STATEMENT RECONCILIATION
CONCILIATION BETWEEN CASH FLOW GENERATED BY THE OPERATION'S
ACTIVITIES AND THE INCOME STATEMENT FOR THE YEAR
1.00.01.30 Type of Currency: Thousands of Chilean Pesos
1.00.01.40 Type of Balance : Individual
CASH FLOW - INCOME STATEMENT RECONCILIATION NOTE No. 09-30-03 09-30-02
5.50.10.00 Profit (Loss) for the year 2,415,990 16,447,688
5.50.20.00 Profit in sale of assets (4,527) (34,559)
5.50.20.10 (Profit) Loss in sale of fixed assets (4,527) (34,559)
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) 17,688,082 12,856,653
5.50.30.05 Depreciation for the year 12 7,296,880 6,756,809
5.50.30.10 Amortization of intangibles 649,029 1,151,110
5.50.30.15 Write-offs and provisions 735,519 4,897,693
5.50.30.20 Accrued earnings from investments in 14 (3,664,360) (5,815,658)
related companies (minus)
5.50.30.25 Accured losses from investments in 14 5,251,034 9,599,137
related Co.
5.50.30.30 Negative goodwill amortization 16 128,813 128,815
5.50.30.35 Positive goodwill amortization (minus) 0 0
5.50.30.40 Price level restatement 29 432,458 641,810
5.50.30.45 Net exchange difference 30 9,901,636 (8,370,748)
5.50.30.50 Other non-cash credits to results (minus) (24,735) (24,736)
5.50.30.55 Other non-cash debits to results (3,018,192) 3,892,421
5.50.40.00 Changes in Assets affecting cash flow (incr) (1,180,248) (1,267,598)
decreases
5.50.40.10 Debtors from sales (943,198) (2,699,593)
5.50.40.20 Inventory (255,357) 1,318,903
5.50.40.30 Other assets 18,307 113,092
5.50.50.00 Changes in liabilities affecting cash flow (443,807) 274,389
increases (decr)
5.50.50.10 Accounts payable related to results for 7,709 (1,713,238)
the year
5.50.50.20 Interests payable (990,445) 695,916
5.50.50.30 Income tax payable (net) 408,444 1,056,743
5.50.50.40 Other accounts payable related to (315,646) (231,765)
non-oper results
5.50.50.50 VAT and other taxes payable (net) 446,131 466,733
5.50.60.00 Profit (Loss) of minority interest 0 0
5.50.00.00 NET OPERATING CASH FLOW 18,475,490 28,276,573
6
01. Registration In The Securities Register
1. IDENTIFICATION OF THE COMPANY AND REGISTRATION IN THE SECURITIES REGISTER
The company is registered in the Securities Register under N 061 and is
supervised by the Securities and Insurance Commission.
7
02. Applied Accounting Criteria
a) Accounting Period
These financial statements correspond to the period between January 1 and
September 30 of 2003 and 2002.
b) Preparation basis of financial statements:
These individual financial statements as of September 30, 2003 and 2002 have
been prepared on the basis of generally accepted accounting principles and
specific norms issued by the S.V. S., with the former prevailing in case of
discrepancies.
Investments in subsidiaries are recorded on one line in the general balance
sheet at their net worth and, therefore, they have not been consolidated line
by line. This treatment does not modify the net income of the fiscal year nor
the net worth.
These financial statements have been issued only for purposes of making an
individual analysis of the Company and, in consideration thereof, shall be
read together with the consolidated statements, which are required by
generally accepted accounting principles.
c) Presentation Basis
For comparison purposes, the financial statements and figures included in the
disclosures for the 2002 fiscal year are presented updated according to
non-accounting terms as of September 30, 2003 by 2.9%.
d) Adjustment for Currency Devaluation (Price Level Restatement)
Financial statements have been corrected monetarily on the basis of
considering the variation in the purchasing power of the currency which
occurred in the 2003 fiscal year, which was 1.2% (1.3% in 2002).
e) Conversion Basis
Balances in foreign currency and indexed currency units have been converted to
pesos at the indicated parities:
2003 2002
Ch$ Ch$
U.S. Dollar 660.97 748.73
Pound Sterling 1,099.23 1,173.19
Swiss Franc 501.76 506.96
EURO 770.81 770.39
Unidad de Fomento 16,946.03 16,455.03
f) Marketable Securities and Time Deposits
8
Transactions in fixed income instruments are shown at the return value of the
investment, which does not exceed the market value as of September 30, 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 in Mutual Funds are valued at the liquidation value at the close
of the fiscal year.
g) Inventory
Inventory of finished products has been valued as of September 30, 2003 and
2002 at the direct production cost, duly updated, and raw materials and
materials at the cost of the last purchase or its corrected cost. Those
valuations do not exceed the net liquidation value.
h) Bad Debts (Uncollectables)
The parent company and subsidiaries have made provision for bad debts that is
deducted from debtors for sales. The criterion adopted to estimate them is the
age of the balances.
i) Fixed Assets
Fixed assets are shown at purchase cost plus legal and regulatory revaluations
accumulated until September 30, 2003 and 2002.
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
None.
n) Investments in Related Companies
Investments in stock and rights in related companies have been valued
according to the percentage of the holding that corresponds to the Company in
the equity of its affiliates (VPP), according to procedures established for
these purposes by circular 368 of the Securities and Insurance Commission.
9
o) Negative and Positive Investment Goodwill:
Negative and positive investment goodwill have arisen when comparing the price
paid for the investment made and the proportional value that corresponds to
that investment in the net worth of the company.
Negative goodwill amortizations are carried out over a twenty-year period.
As of September 30, 2003 and 2002 there was no positive investment goodwill.
p) Operations with buyback and sellback agreement
Financial instruments acquired with a sellback agreement are shown at their
purchase value plus interest and adjustments accrued at the closing of the
fiscal year, and they are classified in Other Current Assets, in the terms
established in Circular No. 768 of the Securities and Insurance Commission.
q) Deferred Taxes and Income Tax
The company has complied with deferred taxes, in accounting terms, as
established in Technical Bulletin No. 60 and the norms indicated in Circular
1466 of the S.V.S.
Income tax is recorded in the accounting on the basis of the calculation of
net taxable income determined according to norms established in the Income Tax
Law.
r) Severance payment
The parent company has established a reserve for all of the personnel's
severance payment, according to the union contracts signed with their workers.
This reserve is shown at the present value of the obligation.
s) Sales
The company recognizes the income from its operations on an accrued basis
according to generally accepted accounting principles.
t) Derivative Contracts
The company maintains Future contracts in foreign currency, which have been
recorded as established in Technical Bulletin 57 of the Accountants
Association of Chile.
u) Computer Software
The company develops computer software with its own resources, and it also
acquires computer packages from third parties. Disbursements for its own
development are charged to results as they are generated. Computer packages
are recorded in Fixed Assets and amortized in 36 months.
10
v) Research and Development Expenses
The company records expenses for this concept directly in results as they are
generated.
w) Cash Flow Statement:
According to current regulations of the Securities and Insurance Commission
and the Accountants Association of Chile, in preparing the cash flow
statement, the Company has considered time deposits, fixed rate mutual fund
investments and deposits with maturities under 90 days as cash.
Such cash flows related to the Company's line of business, interest paid,
interest income received, dividends received, and all such that is not defined
as investment or Financing is included under the heading "Flow Originating in
Activities of the Operation."
Income by time deposits and agreements with maturity more than 90 days Has
been clasified in the item "Investments in Financial Instruments".
11
03. Accounting Changes
As of September 30, 2003 and 2002, there have not been any changes in the
accounting criteria that affect the individual financial statements.
12
04. Marketable Securities
As of September 30, 2003, this item is composed by the following investments:
a) Investments in bonds and Fixed Fate Instruments in the amount of Th
Ch$ 51,487,181; mainly corresponding to investments in State Bonds
and bonds of financial institutions in USA, Germany, Holland,
Collateralized Bonds of Private Companies in USA (guaranteed by
accounts receivable) and USA Mortgage Bonds with state guarantee.
b) Th Ch$ 4,163,102 in shares.
c) Th Ch$ 308,240 in investment funds of fixed income in US$.
As of September 30, 2002 investments in shares are included in the amount of
Th Ch$ 3,776,725; Th Ch$ 8,903,062 in Mutual Funds of Fixed Rate Instruments
in US$ and Th Ch$ 29,941 corresponding to interests accrued from Bonds.
CRISTALERIAS DE CHILE S.A.
NOTE 4 -MARKETABLE SECURITIES- BALANCE COMPOSITION
Type of Security Book Value
09-30-2003 09-30-2002
Stock 4,163,102 3,776,725
Bonds 0 0
Mutual fund shares 0 0
Investment fund shares 308,240 8,903,062
Public tender promissory notes 0 0
Mortgage bonds 0 0
Fixed rate instruments and bonds 51,487,181 29,941
Total Marketable Securities 55,958,523 12,709,728
13
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 63,642,856 9.9980 95 6,071,528 4,163,102
Emiliana S.A.
Value Investment Portfolio 6,071,528 4,163,102
Adjustment Reserve 0
Book value, Investment Portfolio 4,163,102
14
CRISTALERIAS DE CHILE S.A.
NOTE 4 - MARKETABLE SECURITIES - FIXED RATE INSTRUMENTS
Par Market
Type of Security Value Book Value Value Reserve
Amount Rate %
Financial Institutions bonds (USA, Germany and
Holland) 24,044,544 24,044,544 5.90 24,044,544 0
US treasury bonds 13,584,553 15,584,553 1.26 13,584,553 0
Mortgage bonds USA, with state guarantee 13,359,571 13,359,571 1,26 13,359,571 0
Call Deposit 806,753 806,753 5,85 806,753 0
TOTAL 51,795,421 51,795,421 - 51,795,421 -
Note:
(1) The investements were made in U.S. Dollars (75.4%) and EUROS (24.6%) with
custody abroad.
(2) These investments can be rescued within 48 hours warning.
(3) Rate for period from 01-01-2003 to 09-30-2003.
15
05. Short-Term and Long-Term Debtors
At September 30, 2003 and 2002 there are balances of short-term debtors of Th
Ch$ 22,262,080 and Th Ch$ 21,328,894, respectively.
In addition there is a balance of Th Ch$ 142,826 for Long-Term debtors in 2003
(Th Ch$ 177,084 in 2002).
As of September 30, 2003 and 2002 the company has established a reserve for
bad debts of Th Ch$ 143,127 in 2003 (Th Ch$ 128,541 in 2002), which is
deducted from Debtors for Sales.
The balance of Short-term Debtors is shown net of the reserve for bad debtors
and customer advances.
16
CRISTALERIAS DE CHILE S.A.
NOTE 5 -SHORT AND LONG TERM DEBTORS
Current Assets
Item Up to 90 days Over 90 days up to 1 year Subtotal
09-30-2003 09-30-2002 09-30-2003 09-30-2002
Debts from Sales 18,719,228 17,707,250 1,017,505 761,095 19,736,733
Estimate of non-collectable debt -- -- -- 143,127
Documents receivable 1,716,775 2,380,495 119,954 57,031 1,836,729
Estimate of bad debtors -- -- -- -- --
Misc. debtors 799,785 509,652 31,960 41,912 831,745
Estimate of bad debtors -- -- -- -- --
Current Assets
Total Current (net) Long Term
09-30-2003 09-30-2002 09-30-2003 9-30-2002
Debts from Sales 19,593,606 18,339,804 0 0
Estimate of non-collectable debt -- -- -- --
Documents receivable 1,836,729 2,437,526 0 0
Estimate of bad debtors -- -- -- --
Misc. debtors 831,745 551,564 142,826 177,084
Estimate of bad debtors -- -- -- --
Total Long Term Debtors 142,826 177,084
17
06. Balances and Transactions with related entities
I. Balances receivable in the Short-Term as of September 30, 2003 and 2002
amount Th Ch$ 2,352,998 and Th Ch$ 3,173,123, respectively. In
addition, in the Long-Term a balance of Th Ch$ 21,334,102 and Th Ch$
24,859,956 is recorded, respectively, which correspond to Th Ch$
19,893,689 in 2003 for the sale of Rayen Cura S.A.I.C. shares to the
subsidiary Cristalchile Inversiones S.A., equivalent to UF 1,173,943.93
, without interests and Th Ch$ 1,440,413 in 2003, which correspond to
loans granted to Red Televisiva Megavision S.A.
Detail of outstanding credits from related companies:
1) Loan to Red Televisiva Megavision S.A.
Annual Rate 4.05%, UF adjustability
07.05.2005 17,000 UF Th Ch$ 288,083
01.05.2006 17,000 UF Th Ch$ 288,083
07.05.2006 17,000 UF Th Ch$ 288,083
01.05.2007 17,000 UF Th Ch$ 288,083
07.05.2007 17,000 UF Th Ch$ 288,081
3) There are balances for invoicing of Sales of bottles and services with the
following related companies with expiration under 90 days:
2003 2002
Th Ch$ Th Ch$
S.A. Vina Santa Rita 2,008,665 2,389,769
Vina Los Vascos S.A. 144,726 143,578
Rayen Cura S.A.I.C. 180,640 0
Servicios y Consultorias Hendaya S.A 1,900 0
Vina Dona Paula S.A. 2,158 0
--------- ---------
Total 2,338,089 2,536,347
II. Balances Payable in the Short-Term amount Th Ch$ 798,115 in 2003 and
Th Ch$ 704,699 in 2002, which correspond to sundry material purchased.
For invoicing there are accounts payable of related companies for the
following balances with expirations under 90 days:
2003 2002
Th Ch$ Th Ch$
S.A. Vina Santa Rita 203,909 146,333
Ediciones Financieras S.A. 0 1,765
Vina Los Vascos S.A. 8,814 14,322
Megavision S.A. 0 0
Cia. Electro Metalurgica S.A. 0 0
Servicios y Consultorias Hendaya S.A. 0 0
------- -------
TOTAL 212,723 162,420
For dividends payable to related companies there is the following detail:
18
2003 2002
Th Ch$ Th Ch$
Cia. Electro Metalurgica S.A. 326,700 336,174
Servicios y Consultorias Hendaya S.A, 85,190 87,661
Bayona S.A. 88,688 91,260
------- -------
TOTAL 500,578 515,095
For balances in favor in CIECSA S.A.'s current account Th Ch$ 44,424,
Cristalchile Inversiosnes S.A. Th Ch$ 8,931 and Cristalchile Comunicaciones
S.A. Th Ch$ 31,459.
19
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
09-30-2003 09-30-2002 09-30-2003 09-30-2002
86547900-K S.A. VINA SANTA RITA 2,008,665 2,389,769 0 0
79952350-7 RED TEL. MEGAVISION S.A. 14,908 622,481 1,440,413 2,302,783
89150900-6 VINA LOS VASCOS S.A. 144,726 146,578 0 0
96721580-5 CRISTACHILE COMUNICACIONES S.A. 0 14,295 0 0
96972440-5 CRISTALCHILE INVERSIONES S.A. 0 0 19,893,689 22,557,173
83032100-4 SERV. Y CONSULTORIAS HENDAYA S.A. 1,900 0 0 0
0-E RAYEN CURA S.A. I.C. 180,640 0 0 0
0-E VINA DONA PAULA S.A. 2,159 0 0 0
TOTAL 2,352,998 3,173,123 21,334,102 24,859,956
20
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
09-30-2003 09-30-2002 09-30-2003 09-30-2002
86547900-K S.A. VINA SANTA RITA 203,909 146,333 0 0
96608270-4 CIECSA S.A. 44,424 16,942 0 0
96972440-5 CRISTALCHILE INVERSIONES S.A. 8,931 10,243 0 0
89150900-6 VINA LOS VASCOS S.A. 8,814 14,322 0 0
96539380-3 EDICIONES FINANCIERAS S.A. 0 1,765 0 0
86755600-1 BAYONA S.A. 88,688 91,260 0 0
90320000-6 CIA. ELECTROMETALURGICA S.A. 326,700 336,174 0 0
83032100-4 SERV. Y CONSULTORIAS HENDAYA S.A. 85,190 87,660 0 0
96721580-5 CRISTALCHILE COMUNICACIONES S.A. 31,459 0 0 0
TOTAL 798,115 704,699 0 0
21
CRISTALERIAS DE CHILE S.A.
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
TRANSACTIONS
09-30-2003 09-30-2002
Effect on Effect on
Description of Results Results
Company R.U.T. Relationship Transaction Amount (Debit/Credit) Amount (Debit/Credit)
CLARO Y CIA. 79753810-8 With the Chairman Legal assesment 31,248 -31,248 27,509 -27,509
CIA. SUDAMERICANA DE 90160000-7 Indirect Carrier 187,569 0 12,621 0
VAPORES S.A. affiliate services
VINA LOS VASCOS S.A. 89150900-6 Indirect Direct sales 307,151 79,590 391,165 108,484
affiliate
Indirect Materials 29,177 0 16,709 0
affiliate purcha
EDICIONES FINANCIERAS 96793770-3 Indirect Received 3,748 -3,748 5,883 -5,883
S.A. affiliate services
QUEMCHI S.A. 96640360-8 Indirect Loaned services 8,215 8,215 7,541 7,541
affiliate
BAYONA S.A. 86755600-1 Controlling Dividends paid 723,399 0 584,673 0
stockholder
NAVARINO S.A. 96566900-0 Indirect Given services 7,586 7,586 7,541 7,541
subsidiary
CIECSA S.A. 96608270-4 Subsidiary Capital 1,512,024 0 389,971 0
Contribution
Subsidiary Adjustments 91 -91 212 -212
SERV. Y CONS. HENDAYA 83032100-4 Controlling Received 780,580 -780,580 777,404 -777,404
S.A. stockholder services
Controlling Dividends paid 694,870 0 649,275 0
stockholder
Controlling Given services 15,709 15,709 14,928 14,928
stockholder
CRISTALCHILE INVERSIONES 96972440-5 Subsidiary Adjustments 245,188 245,188 272,969 272,969
S.A.
Subsidiary Credit return 1,788,069 0 432,923 0
Given Credit 0 0 3,837,284 0
Account 0 0 47 0
Payments
S.A. VINA SANTA RITA 86547900-K Subsidiary Container 4,365,875 1,131,306 4,969,250 1,378,151
Sales
Subsidiary Packaging 370,736 0 443,621 0
sales
Subsidiary Materials and 474,143 126,193 520,474 -25,552
services purcha
Subsidiary Dividends 1,506,577 0 1,204,635 0
Received
Subsidiary Rent of 13,819 13,819 47,475 31,246
Vineyard and
grape sales
CRISTALCHILE 96721580-5 Subsidiary Adjustments 0 0 173 173
COMUNICACIONES
Capital 2,510,000 0 0 0
Contribution
CIA. ELECTROMETALURGICA 90320000-6 Controlling Dividends paid 2,664,783 0 2,489,931 0
S.A. stockholder
Controlling Materials 3,585 0 1,808 0
stockholder purcha
Controlling Account 280 0 0 0
stockholder Payments
RED TELEVISIVA 79952350-7 Related with Interests 91,923 91,923 150,918 150,918
MEGAVISION S.A. Subsidiary
Related with Adjustments 30,922 30,922 33,651 33,651
Subsidiary
Related with Loan repayment 1,152,360 0 0 0
Subsidiary
Related with Advertisements 0 0 2,573 -2,573
Subsidiary
RAYEN CURA S.A.I.C. 0-E Indirect Direct Sales 435,591 135,177 188 0
affiliate
22
07. Inventory
The balance of the inventory item corresponds to finished products and
materials that are valued as described in Note 2 g). A detail of its
composition is shown below:
2003 2002
Th Ch$ Th Ch$
Finished Products 2,680,271 2,492,462
Raw Materials and Fuel 1,635,413 1,659,258
Materials and spare parts to be consumed 1,041,451 1,149,004
Materials in transit 302,840 0
---------- -----------
TOTAL 5,659,975 5,300,724
23
08. Deferred taxes and income taxes
A) DEFERRED TAXES.
Accumulated balances of deferred taxes for temporary differences, and their
composition in the income tax account for effects of fiscal year results and
recognition of deferred taxes, are presented on the attached charts.
Estimated amortization periods of deferred taxes have been estimated on the
average at 1 years for Short-Term Assets, 5 for Long-Term Assets, and 14.4 for
Long-Term Liabilities.
B) INCOME TAX
The Company established tax provisions of 16.5% of First Cateogry Income Tax
in 2003 and 16% in 2002, and 35% as single tax under Art. 21, for the 2003 and
2002 fiscal years.
Credits against taxes are shown deducting the payable obligation.
The itemized list is the following:
2003 2002
Th Ch$ Th Ch$
Fiscal year income tax reserve (656,310) (2,518,216)
Single tax reserve (8,032) (7,115)
----------- -----------
SUBTOTAL (664,342) (2,525,331)
Credits:
Monthly reserve payments 2,120,700 2,400,153
Training expenditure 35,472 34,847
Credit from donations 0 3,170
Recoverable VAT 0 0
----------- -----------
CREDIT SUBTOTAL 2,156,172 2,438,170
INCOME TAX TOTAL 0 0
VAT Tax Credit previous fiscal year 232,373 240,469
----------- -----------
TOTAL TAXES TO BE RECOVERED 1,724,203 153,308
C) TAXABLE PROFIT FUND
The company showed the following taxable profits to be distributed:
2003 2002
Thou Ch$ Thou Ch$
Generated to 31.12.1983:
Profit Adjustment 1,924,872 1,924,782
Generated since 01.01.1984:
Without Credit 1,075,346 1,048,220
With 10% First Category Credit 22,761 82,751
24
With 15% First Category Credit 86,254,956 95,265,496
With 15% Additional Rate Credit 724 746
With 16% First Category Credit 16,173,816 15,904,716
With 16.5% First Category Credit 4,113,428 0
------------- -------------
SUBTOTAL TAX PROFITS 107,641,031 112,301,929
Non-income revenues 6,845,657 6,850,759
------------- -------------
Total earnings to distribute 114,486,688 119,152,688
25
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
DEFERRED TAXES
09-30-2003 09-30-2002
Item Asset Deferred Tax Liability Deferred Tax Asset Deferred Tax Liability Deferred Tax
Short term Long Term Short Term Long Term Short Term Long Term Short Term Long Term
Temporary Differences
Reserve non-collectable accounts 23,616 0 0 0 21,125 0 0 0
Expected revenue 0 0 0 0 0 0 0 0
Vacation reserve 62,093 0 0 0 0 0 0 0
Amortization intangibles 0 0 0 0 58,097 0 0 0
Leased assets 0 0 0 0 0 0 0 0
Manufacturing expenses 0 0 0 0 0 0 0 0
Fixed asset depreciation 0 0 0 4,608,290 0 0 0 4,388,437
Severance 1,756 145,219 0 0 1,745 136,083 0 0
Other events 0 0 0 0 0 0 0 0
Packaging reserve 193,613 0 0 0 212,577 0 0 8,248
Machinery repair reserve 0 0 0 0 0 0 0 0
Furnace repair reserve 0 580,543 0 0 260,577 262,274 0 0
Refractories obsolescence reserve 7,090 0 0 0 6,575 0 0 0
Spare parts obsolescence reserve 97,303 0 0 0 97,406 0 0 0
Deferred customs duties 0 0 0 1,959 21,370 0 0 157,849
Accumulated depreciation 0 16,598 0 80,552 0 12,488 0 0
automoviles
Unrealized profit 41,036 6,991 0 0 0 2,453 0 0
Fixed asset, molds 0 0 0 264,005 0 0 0 239,566
Lower valued bonds 0 0 53,281 552,116 0 0 52,608 0
OTHERS
Complementary accounts-net 0 12,552 0 2,381,944 5,397 55,456 0 2,668,888
amortization
Valuation reserve 0 0 - -
Total 426,507 736,799 53,281 3,124,978 674,075 357,842 52,608 2,125,212
26
CRISTALERIAS DE CHILE S.A.
NOTE 8 - DEFERRED TAXES AND INCOME TAX
INCOME TAX
ITEM 09-30-2003 09-30-2002
Current tax costs (tax reserve) -664,342 -2,525,331
Adjustment tax cost (previous year) 0 0
Effect on assets or liabilities from deferred tax of fiscal year -98,107 -851,118
Tax benefit from tax losses 0 0
Effect of amortization of complementary accounts of deferred -125,301 -53,889
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 -887,750 -3,430,338
27
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 September 30, 2003 and 2002, there are no transactions for this concept.
28
10. Other current assets
As of September 30, 2003, investments in financial instruments for Th Ch$
2,055,229, with resale agreements, valued as stated in note 2 p) for Th Ch$
827,000 corresponding to agreements in pesos, and agreements in US$ under 90
days for Th$ 1,228,229.
On September, 2003 Th Ch$ 325,276 are included corresponding to issuance
expenses and rate placement difference of bonds series C and D.
As of September 30, 2002, there was a balance of Th Ch$ investments in
financial instruments with resale agreements for Th Ch$ 22,583,084, valued as
stated in note 2 p), Th Ch$ 3,864,460 as balance in favor for Future Contracts
in foreing currency are included. In addition Th Ch$ 328,802 exist, which
correspond to the current portion of expenses and goodwill for the issue of
bond series C1, C2, D1 and D2.
29
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.
30
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)
Dates Original Price Market
Code Start End Counterpart Currency Set Rate Final Value Document ID Value
CRV 09.30.2003 10.01.2003 BCO. CRED. INV. Pesos 827,000 0.22 827,061 BPC-PDBC 827,00
CORREDORES BOLSA
CRV 09.30.2003 10.01.2003 BANCO DE CHILE Pesos 1,228,229 1.00 1,220,581 CHI-EST-PRD-FN 1,228,229
31
12. Fixed Assets
Fixed Assets:
The Fixed Assets are shown at purchase cost plus the legal and regulatory
revaluations accumulated as of September 30, 2003 and 2002.
The items that make up the Company's fixed assets as of September 30, 2003 and
2002 include mainly Land, Industrial Constructions, Infrastructure Works,
Machinery and Equipment distributed in the Padre Hurtado Plant.
During 2002, the company carried out a fixed asset inventory, adjusting the
value of fully depreciated assets with their respective accumulated
depreciation.
Technical Reappraisal and Adjustment of Accounting Values
The company carried out a technical reappraisal of its fixed assets in 1979.
Likewise, in June 1986 it adjusted those assets. Both operations were carried
out according to the provisions established in Circular Letters No. 1529 and
No. 550 respectively of the Securities and Insurance Commission.
The effects of these operations, including write-offs of property, are shown
on the attached chart.
Depreciations:
The charge against results for this item is Th Ch$ 7,296,880 in 2003 and Th
Ch$ 6,756,809 in 2002.
The detail is shown on an attached chart.
32
FIXED ASSETS
2003 2002
Th Ch$ Th Ch$
LAND
Land & mining claims 1,507,923 1,507,948
Subtotal land 1,507,923 1,507,948
Subtotal land 1,507,923 1,507,948
CONSTRUCTIONS & INFRASTRUCTURE
High rises and industrial const. 13,394,578 13,393,376
Facilities 9,109,391 4,741,234
Housing developments 26,265 26,264
Subtotal constructions & infrastrucrture 22,530,234 18,160,874
Accumulated depreciation (8,921,125) (7,275,952)
Depreciation for the fiscal year (966,814) (638,052)
Subtotal depreciation (9,887,939) (7,914,004)
SUBTOTAL CONSTRUCTIONS & INFRASTRUCTURE 12,642,295 10,246,870
MACHINERY & EQUIPMENT
Machinery 54,533,378 55,962,010
Furnaces 46,365,920 37,892,223
Furniture and Maerials 1,271,536 1,718,674
Tool 348,722 357,533
Vehicles 211,847 206,222
Subtotal Machinery & equipment 102,731,043 96,136,662
Accumulated depreciation (41,044,037) (40,135,214)
Depreciation for the fiscal year (6,173,318) (5,962,008)
Subtotal depreciation (47,217,355) (46,097,222)
Subtotal machinery & equip 55,514,048 50,039,440
OTHER FIXED ASSETS
Spare parts 5,545,442 5,216,836
Imports in transit 123,660 65,105
Works underway 1,112,106 867,905
Lots in Pirque and Leyda 464,290 475,952
Other 319,883 184,106
Subtotal other assets 7,565,381 6,809,904
TOTAL FIXED ASSETS 134,334,941 122,615,388
TOTAL ACCUMUL. DEPREC. (49,965,162) (47,411,466)
TOTAL DEPREC FOR F. YEAR (7,140,132) (6,600,060)
TOTAL NET FIXED ASSETS 77,229,647 68,604,162
33
TECHNICAL REVALUATION AND ADJUSTMENT OF ACCOUNTING VALUES
2003 2002
Th Ch$ Th Ch$
LAND
Land and mining claims 313,585 319,476
Subtotal land and mining claims net 313,585 319,476
CONSTRUCTIONS & INFRASTRUCTURE
High rises and industrial constructions 6,264,995 6,258,899
Facilities 41,406 444,405
Subtotal Constructions 6,306,401 6,703,304
Accumulated depreciation (4,861,664) (5,055,742)
Depreciation for the fiscal year (156,748) (156,749)
Subtotal depreciations (5,018,412) (5,212,491)
Subtotal Constuctions & Infrastucture net 1,287,989 1,490,813
MACHINERY & EQUIPMENT
Furnaces 0 530,370
Machinery 0 1,015,188
Tools 0 54,778
Furniture and Materials 0 14,554
Subtotal Machinery & equipment 0 1,614,890
Accumulated depreciation 0 (1,614,890)
Depreciation for the fiscal year 0 0
Subtotal depreciation 0 (1,614,890)
Subtotal machinery & equip 0 0
Total Net Technical Revaluation 1,601,574 1,810,289
TOTAL REVALUATED ASSET 6,619,986 8,637,670
TOTAL ACCUMULATED DEPRECIATION (4,861,664) (6,670,632)
TOTAL DEPRECIATION FOR YEAR (156,748) (156,749)
TOTAL NET 1,601,574 1,810,289
34
13. Sales transactions with leaseback
These type of transactions were not carried out as of September 30, 2003 and
2002.
35
14. Investments in related companies
The Company has valued its investments in related companies according to the
norms indicated in note 2 n).
CIECSA S.A.
On April 20, 2000 the Shareholders of Ciecsa S.A. agreeded to increase its
equity by the equivalent to UF 359,921 through the issue of 343,750,000 shares
that were fully subscribed by Cristalchile S.A. On April 18, 2003 the
subcribtion was paid. On August 26, 2003 it was agreeded to increase
CIECSA's capital by Th Ch$ 910,000, through the issue of 36,400,000 shares
totally suscribed and paid by Cristalchile, with which the participation in
the subsidiary increased to 98.45% as of September 30, 2003.
CRISTALCHILE INVERSIONES S.A.
This company was formed at the end of 2001 in which Cristalerias de Chile S.A.
has a 99.99 % share of the equity. Cristalchile Inversiones S.A., in turn,
registers a 40% investment in Rayen Cura S.A.I.C., a company constituted in
the city of Mendoza, Republic of Argentina.
On January 31, April 25 and June 30 of 2003 Rayen Cura S.A.I.C. made capital
reimbursements of part of a capital increase paid on April 29, 2002.
Reimbursed amounts totaled Th US$ 2,600.
As of September 30 the financial statements of Rayen Cura S.A.I.C. have
recognized an exchange rate of $ 2.87 Argentine pesos per US Dollar.
CristalChile Inversiones S.A., in turn, has adjusted the financial statements
of Rayen Cura S.A.I.C. in order to acknowledge the variation occurred from
$3.32 Argentine pesos (exchange rate used as of December 31, 2002) and $2.87
Argentine pesos per US dollar as of September 30, 2003.
As an effect of the result of this affiliate and the conversion of the
financial statements of Rayen Cura S.A.I.C., according to chilean normative,
CristalChile Inversiones S.A., has recognized a Th Ch$ 717,358 income as of
September 30, 2002, and a Th Ch$ 2,675,431 loss as of September 30, 2002.
On the other hand, the dollar exchange rate variation during the 2003 and 2002
fiscal years originated a Th Ch$ 1,232,724 charge in 2003 and a Th Ch$ 500,208
credit in 2002 in the item Other Equity Reserves, for the investment in Rayen
Cura S.A.I.C. and from the negative goodwill produced by the purchase of
shares of that company.
CRISTALCHILE COMUNICACIONES S.A.
As of September 29, 2003 the Shareholders agreeded to increase the
company's equity by issuing 3,861,538 shares, without nominal value, at a
value of Ch$ 650 each, which represents Th Ch$ 2,510,000.
Such increase was suscribed and paid by Cristalerias de Chile S.A., with which
its participation in the company's equity reaches 99.998%.
S.A. VINA SANTA RITA
36
As of September 30, 2003, the company has registered an unrealized income of
Th Ch$ 248,705, corresponding to container sales to the the subsidiary S.A.
Vina Santa Rita.
37
CRISTALERIAS DE CHILE S.A.
NOTE 14 - INVESTMENTS IN RELATED COMPANIES
DETAIL OF INVESTMENTS
Investment
Country of Control Number of Shareholder
R.U.T. Company Origin Currency Shares (Percentage)
09-30-2003 09-30-2002
96721580-5 Cristalchile Chile Peso 101,213,160 99.9981689220 99.998000
Comunicaciones S.A.
86547900-K S.A. Vina Santa Rita Chile Peso 493,959,797 54.0970095470 54.097000
S.A
86881400-4 Envases CMF S.A. Chile Peso 28,000 50.0000000000 50.000000
96608270-4 Ciecsa S.A. Chile Peso 652,901,305 98.4457827010 98.273700
Constructora Apoger
96767580-6 S.A. Chile Peso 800,000 80.0000000000 80.000000
Inmobiliaria Don
96826870-8 Alberto S.A. Chile Peso 3,817 38.1700000000 38.170000
Cristalchile
96972440-5 Inversiones S.A. Chile Peso 9,999 99.9900000000 99.990000
TOTAL
CRISTALERIAS DE CHILE S.A.
NOTE 14 - INVESTMENTS IN RELATED COMPANIES
DETAIL OF INVESTMENTS
Company Net
Equity Income
09-30-2003 09-30-2002 09-30-2003 09-30-2002
70,614,161 75,140,007 -5,250,286 -6,845,803
81,347,931 79,399,111 3,735,128 8,387,774
33,088,075 30,296,796 713,420 463,654
16,410,897 11,951,794 825,740 1,063,284
5,077 52,135 -1,051 1,709
27 235 -8 -2,734
-2,135,634 606,921 474,198 -2,752,701
CRISTALERIAS DE CHILE S.A.
NOTE 14 - INVESTMENTS IN RELATED COMPANIES
DETAIL OF INVESTMENTS
Result of Income not Book value
Accrual VPP Realized of Investment
09-30-2003 09-30-2002 09-30-2003 09-30-2002 09-30-2003 09-30-2002 09-30-2003 09-30-2002
-5,250,189 -6,845,668 70,612,868 75,138,505 0 0 70,612,868 75,138,505
2,020,593 4,537,535 44,006,798 42,952,538 -248,705 0 43,758,093 42,952,538
356,710 231,826 16,544,038 15,148,398 0 0 16,544,038 15,148,398
812,907 1,044,929 16,155,836 11,745,470 -230,867 -263,853 15,924,969 11,481,617
-841 1,368 4,062 41,708 0 0 4,062 41,708
-4 -1,044 10 89 0 0 10 89
474,150 -2,752,425 0 606,860 0 0 0 606,860
147,323,612 145,633,568 -479,572 -263,853 146,844,040 145,369,715
38
15. Investments in other companies
As of September 30, 2003 and 2002 there are no investments in other companies.
39
16. Goodwill Amortization
NEGATIVE GOODWILL
Stock purchases made on years 1993, 1994, 1995, 1996 and 1999 of S.A. Vina
Santa Rita and Ciecsa S.A., have produced negative goodwill whose net balance
to be amortized as of September 30, 2003 totaled Th Ch$ 1,939,310 (Th Ch$
2,111,095 in 2002).
POSSITIVE GOODWILL
As of September 30, 2003 and 2002 there are no transactions for this concept.
40
CRISTALERIAS DE CHILE S.A.
NOTE 16 - GOODWILL ON INVESTMENTS
Negative Goodwill
R.U.T. Company Name 09-30-2003 09-30-2002
Amount Amortiz. Balance of Negative Amount Amortiz. Balance of Negative
this period Goodwill this period Goodwill
86547900-K S.A. Vina Santa Rita 37,707 572,714 37,708 623,000
96608270-4 Ciecsa S.A. 91,106 1,366,596 91,107 1,488,095
TOTAL 128,813 1,939,310 128,815 2,111,095
41
17. Intangibles
As of September 30, 2003 and 2002 there are no values for these concepts.
42
18. Other (Assets)
As of September 30, 2003, the sum of Th Ch$ 8,971,602 (Th Ch$ 10,580,217 in
2002) for investments in Bonds of Celulosa Arauco y Constitucion S.A.,
equivalent to US$ 13,420,000 at an annual rate of 6.95%, with maturity on
September 15, 2005, is included in Other Long-term Assets.
Considering that there is the intention of maintaining the Celulosa Arauco y
Constitucion S.A. bonds until their maturity on September 15, 2005, the
valuation and registration of the bonds fulfills the provisions in Circular
Letter No. 368 of the S.V.S., as Long-term Fixed Rate Instruments according to
the investment value, plus interests and adjustments accrued at the end of the
fiscal year.
As of September 30, 2003 there is a balance for issuance expenses of bond
series C and D for Th Ch$ 918,574 (Th Ch$ 1,076,048 in 2002), and the negative
goodwill produced as a result of their placement of Th Ch$ 2,337,221 (Th Ch$
2,535,429 in 2002).
In addition, as of September 30, 2002, Th Ch$ 48,213 are included for
anticipated interests of Customs Duties Deferred Rights.
43
19. Short-term obligations with banks and financial institutions
a) Short-term obligations with Banks and Financial Institutions (5.21.10.10).
As of September 30, 2003 and 2002, there are not short-term bank obligations.
b) Long-term obligations with Banks and Financial Institutions (5.21.10.20).
A list of operations is shown on the attached chart.
44
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 Institution Dollars Euros Yens
06-30-2003 06-30-2002 09-30-2003 09-30-2002 09-30-2003 09-30-2002
Short term (code: 5.21.10.10)
Long Term - Short Term (code: 5.21.10.20)
0-E J.P Morgan Chase Bank 136,073 22,015,872 0 0 0 0
Others 0 0 0 0 0 0
TOTAL 136,073 22,015,872 0 0 0 0
Capital amount due 0 22,012,661 0 0 0 0
Average annual interest rate 1.925 3.0 0 0 0 0
Percentage oblig. foreign curr. (%) 100.0000
Percentage oblig. foreign curr. (%) 0.0000
CRISTALERIAS DE CHILE S.A.
NOTE 19 - OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS, SHORT TERM
Type of Currency and Readjustment Index
Other Foreign
Currencies U.F. Non adjustable $ Total
09-30-2003 09-30-2002 09-30-2003 09-30-2002 09-30-2003 09-30-2002 09-30-2003 09-30-2002
0 0 0 0 0 0 136,073 22,015,872
0 0 0 0 0 0 0 0
0 0 0 0 0 0 136,073 22,015,872
0 0 0 0 0 0 0 22,012,661
0 0 0 0 0 0 0 0
45
20. Other Current Liabilities
As of September 30, 2003 , a positive balance of Th Ch$ 4,054,129 in favor of
financial institutions was produced, as a consequence of Future Contracts
subscribed by the Company, more detail of these is shown in note 34 Derivative
Contracts.
As of September 30, 2002, there was no balance for these transactions.
46
21. Long term liabilities with banks and financial institutions
The obligations with banks and financial institutions are presented on the
charts attached.
47
CRISTALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Long-term Obligations With Banks and Financial Institution
Maturity
Adjustment
Bank or index From 1 From 2 From 3 From 5 More than 10 years
Financial currency to 2 to 3 to 5 to 10 Amount Term
R.U.T. Institution M$ M$ M$ M$ M$
0-E J.P. Morgan Chase Bank Dollars -- 8,262,125 24,786,375 -- -- --
Euros -- -- -- -- -- --
Yen -- -- -- -- -- --
UF -- -- -- -- -- --
Non-adj.CH$ -- -- -- -- -- --
Others -- -- -- -- -- --
Total -- 8,262,125 24,786,375 -- -- --
Porcentaje de obligaciones en moneda extranjera 100.00%
Porcentaje de obligaciones en moneda nacional 0.00%
CRISTALERIAS DE CHILE S.A.
NOTE 21: LONG-TERM OBLIGATIONS WITH BANKS AND FINANCIAL INSTITUTIONS
Long-term Obligations With Banks and Financial Institution
Closing date Closing date
Maturity Current period Previous period
Total
Long-Term Average Total Long-Term
at closing of annual at closing of
More than 10 years Financial interest Financial
Amount Term Statements rate Statements
M$
-- -- 33,048,500 1.925 16,509,497
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- -- -- --
-- -- 33,048,500 16,509,497
48
22. Short-term and long-term obligations with the public
(promissory notes and bonds)
As of September 30, 2003 and 2002, there are obligations with the public for
UF 4,100,000, equivalent to Th Ch$ 69,478,723 (Th Ch$ 69,422,126 in 2002)
divided in series C1, C2, D1 and D2, with a 4.75% annual interest in series C
and 5.80% in series D. In the short term there is a balance of Th Ch$ 775,889
(Th Ch$ 774,957 in 2002) corresponding to accrued interests for UF 45,468.20.
49
Cristalerias de Chile S.A.
NOTE 22: SHORT-TERM AND LONG-TERM OBLIGATIONS WITH PUBLIC (PROMISSORY NOTES
AND BONDS)
BONDS
REGISTRATION OR INSTALLMENTS
IDENTIFICATION No. CURRENT INDEXING INTEREST FINAL INTEREST AMORTIZATION
OF INSTRUMENT SERIES FACE VALUE UNIT OF BOND RATE MATURITY PAYMENT PAYMENT
LONG-TERM BONDS - CURRENT PORTION
296-09.07.02 C1 Interests 0 UF 4.75 01-15-2004 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 C2 Interests 0 UF 4.75 01-15-2004 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 D1 Interests 0 UF 5.80 01-15-2004 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 D2 Interests 0 UF 5.80 01-15-2004 SEMI-ANNUAL SEMI-ANNUAL
TOTAL CURRENT PORTION
LONG-TERM BONDS
296-09.07.02 C1 1,500,000 UF 4.75 07-15-2008 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 C2 500,000 UF 4.75 07-15-2008 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 D1 1,900,000 UF 5.80 07-15-2023 SEMI-ANNUAL SEMI-ANNUAL
296-09.07.02 D2 200,000 UF 5.80 07-15-2023 SEMI-ANNUAL SEMI-ANNUAL
LONG-TERM TOTAL
Cristalerias de Chile S.A.
NOTE 22: SHORT-TERM AND LONG-TERM OBLIGATIONS WITH PUBLIC (PROMISSORY NOTES AND
BONDS)
BONDS
ISSUE
PAR VALUE IN CHILE OR
09-30-2003 09-30-2002 ABROAD
LONG-TERM BONDS-CURRENT PORTION
296-09.07.02 255,054 255,047 LOCAL
296-09.07.02 85,085 85,015 LOCAL
296-09.07.02 393,798 393,477 LOCAL
296-09.07.02 41,452 41,418 LOCAL
TOTAL CURRENT PORTION 775,589 774,957
296-09.07.02 25,419,045 25,398,339 LOCAL
296-09.07.02 8,473,015 8,466,113 LOCAL
296-09.07.02 32,197,457 32,171,229 LOCAL
296-09.07.02 3,389,206 3,386,445 LOCAL
LONG-TERM TOTAL 69,478,723 69,422,126
50
23. Provisions and Write-offs
Provisions:
As of September 30, 2003, the Company has short-term provisions of Th Ch$
5,355,462 and Th Ch$ 5,395,482 in 2002.
In the Long-term, provisions are recorded of Th Ch$ 7,623,385 as of September
30, 2003 and Th Ch$ 5,444,154 as of September 30, 2002.
In the annexed chart a detail of provisioned amounts is presented.
a) Bad Debt Reserves:
The Company has established a reserve for bad debts of Th Ch$ 143,127, and Th
Ch$ 128,541, respectively, as of September 30, 2003 and 2002.
This provision is deducted from the balance of debtors from sales, as stated
in note 5.
b) Vacation Provision:
The company has established a provision for the total cost of vacations
pending as of September 30, 2003 and 2002, as established in Technical
Bulletin No. 47 of the Accountants Association of Chile.
The net balance for this item amounts Th Ch$ 376,317 as of September 30, 2003
(Th Ch$ 363,108 in 2002).
c) Provision for Furnace Reconstruction:
This provision is established throughout the useful life of the refractories
of each smelting furnace so their repair will not have a distort the result of
the fiscal year when the repairs are made.
The Company has established a provision for this item in the amount of Th Ch$
3,514,837 and Th Ch$ 3,199,104 as of September 30, 2003 and 2002,
respectively.
An itemized list of the amounts provisioned is shown in the attached chart.
51
Cristalerias de Chile S.A.
Note Provisions and Write-offs 09/30/2003 09/30/2002
Short term
Furnace Reconstruction 0 1,628,602
Packing for Client Return 1,150,178 1,288,343
Board Share 96,640 657,908
Provision Subsidiary Losses 2,135,420 0
Provision Indirect Expenses 687,266 648,481
Provision Legal Gratification 81,832 68,593
Legal Holiday 376,317 363,108
Severance Pay 181,526 171,436
Reserve Spare Parts 438,189 459,332
Other Provisions 208,094 109,679
--------------------------------------
Total Short Term 5,355,462 5,395,482
Long term
Severance Pay 4,108,548 3,873,652
Furnace Reconstruction 3,514,837 1,570,502
--------------------------------------
Total Long-Term 7,623,385 5,444,154
52
24. Severance Payments
The reserve for severance payments to personnel is included at its current
value, as expressed in note 2 r). As of September 30, 2003 it totals Th Ch$
4,290,074 (Th Ch$ 4,045,088 in 2002).
As of September 30, 2003 and 2002 the parent company has paid severance
payments of Th Ch$138,485 and Th Ch$ 66,067 respectively, chargeable against
the reserve.
53
25. Other long-term liabilities
As of September 30, 2003 and 2002 there are no values for this concept.
54
26. Minority interest
Not applicable to individual financial statements.
55
27. Changes in Equity
Activity in 2003 and 2002
The activity of the capital and reserve accounts in the fiscal years ended on
September 30, 2003 and 2002, are shown in the attached charts.
The detail of the item Other Reserves is the following:
2003 2002
Th Ch$ Th Ch$
Future capital increases 4,599,545 4,390,932
Reserve for adjustment of value 1,601,574 1,810,288
of fixed assets
Adjustment for conversion difference 2,129,950 5,578,731
in investment in Rayen Cura S.A.I.C.
Difference VPP Sodex (218,686) (218,689)
---------- ----------
TOTAL OTHER RESERVES 8,122,383 11,561,262
56
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NET WORTH
Reserve capital Premium in sale
Items Paid-in Capital revaluation of shares Other Reserves
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 Profits Capitalization 0 0 0 0
Development period Accumulated deficit 0 0 0 0
Accumulated conversion difference adjustment 0 0 0 1,717,273
Eventual Dividend 0 0 0 0
Owner's equity Revaluation 0 776,991 331,181 116,557
Fiscal Year Result 0 0 0 0
Provisional Dividends 0 0 0 0
Final balances 64,749,257 776,991 27,929,574 8,112,383
Balances as of 06-30-2002
Initial balance 62,863,356 0 26,794,558 7,942,919
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 3,189,257
Owner's equity revaluation 0 817,225 348,328 103,258
Fiscal Year Result 0 0 0 0
Provisional Dividends 0 0 0 0
Final balances 62,863,356 817,225 27,142,886 11,235,434
Updated balances 64,686,393 840,924 27,930,030 11,561,262
Fiscal
Reserve Future Accumulated Provisional Devel. Period Year
Items Dividends Results Dividends Deficit Result
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 Profits Capitalization 0 0 0 0 0
Development period Accumulated deficit 0 0 0 0 0
Accumulated conversion difference 0 0 0 0 0
adjustment
Eventual Dividend -960,000 0 0 0 0
Owner's equity Revaluation 1,573,338 0 -960 0 0
Fiscal Year Result 0 0 0 0 2,415,990
Provisional Dividends 0 0 -960,000 0 0
Final balances 124,356,319 0 -960,000 0 2,415,990
Balances as of 06-30-2002
Initial balance 102,798,113 17,770,611 -4,657,728 -123,129 0
Distribution result previous fiscal year 12,989,754 -17,770,611 4,657,728 123,129 0
Final dividend previous fiscal year -4,230,400 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 0 0 0 0 0
adjustment
Owner's equity revaluation 1,454,480 0 -1,930,560 0 0
Fiscal Year Result 0 0 0 0 15,984,148
Provisional Dividends 0 0 0 0 0
Final balances 113,011,947 0 -1,930,560 0 15,984,148
Updated balances 116,289,293 0 -1,986,546 0 16,447,688
57
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN EQUITY - NUMBER OF SHARES
SERIES No. No. No.
SHARES SHARES SHARES
SUBSCRIBED PAID WITH VOTING
SINGLE 64,000,000 64,000,000 64,000,000
CRISTALERIAS DE CHILE S.A.
NOTE 27: CHANGES IN NETWORTH - CAPITAL (AMOUNT - TH CH$)
SERIES SUBSCRIBED PAID-IN
CAPITAL CAPITAL
SINGLE 64,749,257 64,749,257
58
28. Other Non-operating Income and Expenses
As of September 30, 2003 non-operating income amounted Th Ch$ 288,216 and Th
Ch$ 484,710 in 2002.
Non-operating expenses amounted to Th Ch$ 627,219 as of September 30, 2003 and
Th Ch$ 542,429 in fiscal year 2002.
More detail is shown in annexed chart.
59
Non-operating Income and Expenses
CRISTALERIAS DE CHILE S.A.
NOTE 28: OTHER NON-OPERATING INCOME AND EXPENSES
2003 2002
Th Ch$ Th Ch$
INCOME
Offices and establishments rental 123,129 170,738
Sale of fixed assets 4,527 34,560
Compensation for Damage 2,551 132,534
Sale of materials 20,919 9,397
Others Income (Agricultural Division) 55,505 23,051
Amortization of non-realized profits 24,736 24,736
Sundry income 56,849 89,694
TOTAL NON-OPERATING INCOME 288,216 484,710
EXPENSES
Professional advice 501,037 499,031
Other expenses 74,558 22,088
Insurances 0 21,310
ADR's Expenses 51,624 0
TOTAL NON-OPERATING EXPENSES 627,219 542,429
60
29. Price-level Restatement
As a result of the application of price-level restatement as described in Note
2 d), a net charge to results was generated in the 2003 and 2002 fiscal year
of Th Ch$ 432,458 and Th Ch$ 641,810 respectively.
Additional Balance-itemized information is shown in the annexed chart.
61
Cristalerias de Chile S.A.
NOTE 29: ADJUSTMENT FOR PRICE LEVEL RESTATEMENTS
ASSETS (CHARGES)/CREDITS ADJUSTABILITY 09-30-2003 09-30-2002
INDEX
INVENTORY Consumer Price Index 17,695 55,783
FIXED ASSET CPI 814,367 744,743
INVESTMENTS IN RELATED COMPANIES CPI 1,768,240 1,897,978
MARKETABLE SECURITIES CPI 45,991 46,376
SHORT TERM DEBTORS CPI 1,921 2,920
ACCOUNTS RECEIVABLE RELATED COMPANIES UF 262,350 306,792
LONG-TERM DEBTORS UF 1,943 2,302
SHORT TERM DEBTORS UF 1,009 0
RATE ISSUANCE DIFFERENCE LONG-TERM BOND UF 27,848 0
INFLATIONARY EFFECT CPI 391,258 0
OTHER NON-MONETARY ASSETS UF 2,361 0
OTHER NON-MONETARY ASSETS CPI 12,626 40,728
EXPENSE AND COST ACCOUNTS CPI -7,647 292,651
TOTAL (CHARGES)/CREDITS - 3,339,962 3,390,273
LIABILITIES (CHARGES)/ CREDITS
NET WORTH CPI -2,809,120 -2,791,397
ACCOUNTS RECEIVABLE RELATED COMPANIES UF -91 -212
SHORT-TERM RESERVES CPI -5,086 -8,218
SHORT -TERM CREDITORS CPI 0 -250,302
LONG-TERM CREDITORS CPI 0 -187,696
SHORT-TERM BANK LOANS CPI -71,369 -88,327
LONG-TERM RESERVES CPI -535 -552
PUBLIC OBLIGATION UF -827,831 0
LONG-TERM BANK LOANS CPI 0 -437,998
NON-MONETARY LIABILITIES CPI 16,232 -214,024
INCOME ACCOUNTS CPI -74,620 -53,357
TOTAL (CHARGES)/ CREDITS - -3,772,420 -4,032,083
(LOSS) PROFIT FROM ADJUSTMENT FOR PRICE LEVEL RESTATEMENT -432,458 -641,810
62
30. Exchange Differences
A net charge to results was produced due to exchange differences of Th Ch$
9,901,636 in 2003 and a net credit of Th Ch$ 8,370,748 in 2002.
According to the provisions in Circular Letter 1560 of the SVS of 09/20/2001,
the net effect of the adjustment of adjustable assets and liabilities in
foreign currency on results deducting the effect of inflation is presented in
this item.
Further information is shown on the table attached.
63
Cristalerias de Chile S.A.
NOTE 30: EXCHANGE DIFFERENCES
ITEM CURRENCY AMOUNT
09-30-2003 09-30-2002
FIXED (CHARGES) /CREDITS
AVAILABLE DOLLARS -21,682 15,335
MARKETABLE SECURITIES DOLLARS -4,300,205 980,251
TIME DEPOSITS DOLLARS -95,284 5 ,606,858
INVENTORY DOLLARS -70 ,115 145,974
BONDS INSTALLMENT DOLLARS -783,301 1,330,756
SUNDRY DEBTORS DOLLARS -251,963 205,074
OTHER ASSETS DOLLARS -31,701 0
ADJUSTMENT EFFECT OF INFLATION DOLLARS -391,258 0
TOTAL (CHARGES) /CREDITS -5,945,509 8,284,248
LIABILITIES (CHARGES) /CREDITS
NOTES PAYABLE DOLLARS 174,682 -387,124
NOTES PAYABLE OTHER CURRENCY 9,397 -38 ,919
SUNDRY CREDITORS - SHORT TERM DOLLARS 64,714 0
LONG- TERM BANK LOANS DOLLARS 2,882,000 0
SHORT-TERM RESERVES DOLLARS 0 -200,379
LONG-TERM RESERVES DOLLARS 259,380 -340,706
SUNDRY CREDITORS - LONG TERM DOLLARS 11,591 -127,965
OTHER LIABILITIES DOLLARS 52,764 743,595
ADJUSTMENT FUTURE CONTRACTS DOLLARS -7,410,605 0
INFLATIONARY EFFECT DOLLARS 0 437,998
TOTAL (CHARGES)/ CREDITS -3,956,127 86,500
(LOSS) PROFIT FROM EXCHANGE DIFFERENCE -9,901,636 8,370,748
64
31. Extraordinary Items
As of September 30, 2003, there are no transactions for this item.
65
32. Expenses incurred in the sale of shares and debt instruments
On August, 2002 the company placed bond series C1, C2, D1 and D2 for UF
4,100,000, which resulted in expenses and rate placement difference which
balance as of September 30, 2003 amounts Th Ch$ 3,581,071 (Th Ch$ 3,940,279 in
2002). Amortization is being done according to the maturity of each series.
Classified under current assets there are Th Ch$ 325,276 (Th Ch$ 328,802 in
2002) and Th Ch$ 3,255,795 (Th Ch$ 3,611,477 in 2002) under other long-term
fixed assets.
As of September 30, 2003 and 2002, the charge to results for their
amortization amounts Th Ch$ 247,327 and Th Ch$ 40,487, respectively.
DETAIL 2003
Short -Term Long-Term
Difference in bonds placement rate 198,127 2,337,221
Stamp Tax 114,434 826,717
Placement commission and others 12,715 91,857
Total 325,276 3,255,795
DETAIL 2002
Short -Term Long-Term
Difference in bonds placement rate 197,966 2,535,429
Stamp Tax 118,619 975,599
Placement commission and others 12,217 100,449
Total 328,802 3,611,477
66
33. Cash Flow Statement
An itemized list is included in the attached chart.
CRISTALERIAS DE CHILE S.A.
CASH FLOW STATEMENT
1. The following is the detail of the item OTHERS:
2003 2002
Th Ch$ Th Ch$
541.11.40 Other income received
Accountent Return 895,449 0
Discount for Custom Duties 0 303,445
Insurance severance 0 206,456
Other income 2,837 6,940
Total 898,286 516,841
541.11.80 Other expenses paid
Exchange differences 5,243,049 612,683
Donations 58,877 44,871
Other expenses 2,649 6,440
Total 5,304,575 663,994
541.13.15 Sale of other investments
Redemption LT bonds 308,240 539,039
Redemption Time Dep. over 90 days 0 10,954,454
Other 0 3,056
Total 308,240 11,496,549
541.13.30 Other investment income
Maturity of future contracts 1,469,229 4,000,707
1,469,229 4,000,707
541.13.65 Other investment disbursements
Purchase of shares 318,170 366,017
Future Contracts 5,891,184 728,898
Other 0 10,035
Total 6,209,354 1,104,950
Following are financing and investment activities that did not generate cash
flow during the fiscal year, but that commit future cash flows:
ITEM Amount Th Ch $ Maturity
Dividend No.155 960,000 October -2003
Payable investment imports 213,469 October -2003
Payable investment imports 173,757 December-2003
---------
TOTAL 1,347,226
67
34. Derivative Contracts
The parent company has signed future contracts in foreign currency of Th US$
76,600 in 2003 (Th US$ 109,600 in 2002) 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 September 30, 2003 there was a difference in favor of financial
institutions of Th Ch$ 4,054,129, classified under Other Current Liabilities.
As of September 30, 2002 there was a difference in favor of the Company of Th
Ch$ 3,864,460 classified under Other Current Assets.
68
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS
DESCRIPTION OF CONTRACTS
MATURITY OR PURCHASE/ PROTECTED ITEM OR VALUE OF
TYPE OF TYPE OF VALUE OF EXPIRATION SPECIFIC SALE TRANSACTION PROTECTED
DERIVATIVE CONTRACT CONTRACT DATE ITEM POSITION NAME AMOUNT ITEM
FR CI 25,777,830 FOURTH 2003 EXCHANGE RATE P - 0 0
FR CI 24,852,472 THIRD 2004 EXCHANGE RATE P - 0 0
CRISTALERIAS DE CHILE S.A.
NOTE 34: DERIVATIVE CONTRACTS
ACCOUNTS AFFECTED
ASSETS/LIABILITY EFFECT ON RESULT
NAME AMOUNT REALIZED NOT REALIZED
LIABILITIES 3,159,028 -3,159,028 0
LIABILITIES 895,101 -895,101 0
69
Analisys of Forward Contracts in foreign currency as of 09.30.2003
PROFIT
INSTITUTION DATE FUTURE VALUE (Loss)
Investment Maturity US$ ThCh$
Banco de Chile 05-13-2002 12-01-2003 3,000,000 (115,974)
Banco Chile 10-02-2002 10-01-2003 6,000,000 (569,423)
Banco Santander 10-03-2002 10-02-2003 5,000,000 (483,738)
Deutsche Bank (Chile) S.A. 10-10-2002 10-02-2003 4,000,000 (441,997)
Scotiabank 10-16-2002 10-15-2003 2,000,000 (190,752)
Deutsche Bank (Chile) S.A. 03-28-2003 11-17-2003 10,000,000 (732,956)
Citibank N.A. 03-26-2003 11-10-2003 5,000,000 (362,894)
Banco Santander 04-08-2003 11-24-2003 4,000,000 (261,294)
Citibank N.A. 09-08-2003 09-02-2004 2,000,000 (44,515)
Deutsche Bank (Chile) 09-04-2003 09-03-2004 15,000,000 (474,628)
Bank Boston 09-10-2003 09-06-2004 2,000,000 (46,280)
Deutsche Bank (Chile) S.A. 09-08-2003 09-07-2004 2,000,000 (44,646)
Deutsche Bank (Chile) S.A. 09-08-2003 09-07-2004 1,800,000 (39,997)
Deutsche Bank (Chile) S.A. 10-09-2003 09-09-2004 2,800,000 (64,733)
Deutsche Bank (Chile) S.A. 10-09-2003 09-09-2004 2,000,000 (46,413)
Banco Chile 09-11-2003 09-06-2004 3,000,000 (60,172)
Banco Santander 09-15-2003 09-09-2004 3,500,000 (36,877)
Banco Santander 09-15-2003 08-16-2004 3,500,000 (36,841)
Total 76,600,000 (4,054,129)
70
35. Contingencies and Restrictions
CONTINGENCIES AND COMMITMENTS
As of September 30, 2003, there is a guarantee delivered in the amount of Th
Ch$ 7,944 (Th Ch$ 7,938 in 2002), according to the detail in the attached
chart.
LAWSUITS OR OTHER LEGAL ACTIONS THE COMPANY IS INVOLVED IN
As of September 30, 2003 and 2002 there are no lawsuits and other legal
actions pending.
RESTRICTIONS
I. SYNDICATED LOAN
In relation to the syndicated loan subscribed with JP Morgan Chase Bank and
other 8 creditor banks for US$ 50 million, there are certain financial
obligations mentioned as follows:
a) TOTAL CONSOLIDATED DEBT TO CAPITALIZATION RATIO
Cristalerias de Chile S.A will not allow the Total Consolidated Debt to
Capitalization Ratio exceed the 0.45 to 1.0 ratio at any time.
Capitalization is defined as the sum of Net Worth plus Minority Interest plus
total consolidated debt.
b) TOTAL CONSOLIDATED DEBT TO EBITDA RATIO
Cristalerias de Chile S.A will not allow the Net Consolidated Debt to EBITDA
ratio to exceed the 2.5 to 1.0 ratio at any time.
Consolidated EBITDA is defined as the following: operating income plus
depreciation and amortization, plus non-cash charges (as long as they have
been deduced whe determining operating income) and cash income from interests
minus non-cash credits (as long as they have been added when determining
operating income), in each case for each period.
c) INTEREST COVERAGE RATIO
Cristalerias de Chile S.A. will not allow the Interest Coverage Ratio to be
lower than the following ratios during the following periods: 3.5 from January
01 2001 to December 31, 2002; 4.0 from January 01, 2003 onwards.
Interest coverage at the day of determination is defined as the ratio between
unconsolidated EBITDA for the period of four consecutive fiscal quarters that
end on or most recently ended before, that date; and interest expenses for
that period.
d) NET EQUITY
Cristalerias de Chile S.A. should maintain a minimum amount of UF 10,000,000.
Cristalerias de Chile S.A. complies with 100% of the restrictions agreed with
the creditor banks.
71
II. BOND ISSUE
The bond issue contract signed on May 29, 2002 with Banco Chile as the bonds
owners' representative, establishes among others the following obligations:
a) Financial Indicators
Individual Balance: Indebtedness no higher than 1.2 times.
Consolidate Balance: Indebtedness no higher than 1.4 times.
b) Insurances for the Company and its subsidiaries' fixed assets.
c) The operations refered to by art. 44 and 89 of law 18,046 must be carried
out according to the conditions that these establish.
d) Other minor restrictions related with the bond issue contract.
Cristalerias de Chile S.A. complies with 100% of restrictions agreed with the
bonds' creditors.
OTHER CONTINGENCIES
As of September 30, 2003 and 2002, management is not aware of any other
contingencies that could affect the company.
72
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - DIRECT GUARANTEES
CREDITOR OF
GUARANTEE DEBTOR TYPE OF GUARANTEE ASSETS COMMITTED
NAME RELATIONSHIP TYPE BOOK VALUE
EDIFICIO METROPOLIS CRISTALERIAS DE
AGF CHILE S.A. COMMERCIAL DEPOSIT FLOOR 7,944
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - DIRECT GUARANTEES
BALANCES PENDING PAYMENT AS
OF CLOSING DATE OF FINANCIAL
STATEMENTS RELEASE OF GUARANTEES
09-30-2003 09-30-2002 09-30-2004 ASSETS 09-30-2005 ASSETS 09-30-2006 ASSETS
7,944 7,938 - - - - 7,944 -
73
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - INDIRECT GUARANTEES
CREDITOR OF GUARANTEE DEBTOR TYPE OF GUARANTEE ASSETS COMMITTED
NAME RELATIONSHIP TYPE BOOK VALUE
Societe de
Participations
Financieres et
Industrielles Rayen Cura S.A. Affiliate Solidary - -
Cristalerias de
Envases CMF Chile S.A. Affiliate Solidary - -
CRISTALERIAS DE CHILE S.A.
NOTE 35: CONTINGENCIES AND RESTRICTIONS - INDIRECT GUARANTEES
BALANCES PENDING PAYMENT AS
OF CLOSING DATE OF FINANCIAL RELEASE OF
STATEMENTS GUARANTEES
09-30-2003 09-30-2002 09-30-2004 ASSETS 09-30-2005 ASSETS 09-30-2006 ASSETS
2,665,031 3,993,977 761,437 - 761,437 - 1,142,157 -
226,849 - - - - - 226,849 -
74
36. Guarantees obtained from third parties
As of September 30, 2003 and 2002 the company has received guarantees from
third parties, which are shown below:
ITEM 2003 2002
Th Ch$ Th Ch$
Real Estate Lease Bank Boston UF 367.9 0 6,230
Real Estate Lease Security Bank UF 304 5,152 0
Real Estate Lease to Telecomunicaciones
and Services Cono Sur Ltda. UF 130 2,203 2,201
Real Estate Lease AGF Building UF 365.9 6,201 3,979
Real Estate Lease Metropolis Building UF 189.2 3,206 0
Suppliers Sight Drafts 1,674 1,423
------- ------
TOTAL 18,436 13,833
75
37. Local and Foreign Currency
Charts are attached showing the foreign currency balance as of September 30,
2003 and 2002.
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - ASSETS
ITEMS Currency Amount
09-30-2003 09-30-2002
Current Assets
CASH Non-adjust Ch$ 1,175,662 1,778,988
CASH Dollars 97,336 29,969,991
TIME DEPOSITS Dollars 0 0
TIME DEPOSITS Adjustable Ch$ 5,261,345 5,151,002
MARKETABLE SECURITIES Adjustable Ch$ 4,503,878 4,486,734
MARKETABLE SECURITIES Dollars 51,454,645 8,222,994
MARKETABLE SECURITIES Non-adjust. Ch$ 0 0
DEBTORS FROM SALES Non-adjust. Ch$ 19,593,606 18,339,804
DOCUMENTS RECEIVABLE Non-adjust. Ch$ 1,836,729 2,437,526
MISCELLANEOUS DEBTORS Adjustable Ch$ 78,002 524,523
MISCELLANEOUS DEBTORS Non-adjust. Ch$ 16,556 19,717
MISCELLANEOUS DEBTORS Dollars 737,187 7,323
DOC.&ACTS. REC. REL. CO'S. Non-adjust. Ch$ 2,338,089 2,536,348
DOC.&ACTS. REC. REL. CO'S. Adjustable Ch$ 14,908 636,775
STOCK Adjustable Ch$ 3,600,049 5,300,724
STOCK Dollars 2,059,927 0
TAXES TO BE RECOVERED Non-adjust. Ch$ 1,724,203 153,308
EXPENSES PAID IN ADVANCE Dollars 205,705 178,408
EXPENSES PAID IN ADVANCE Adjustable Ch$ 0 12,639
DEFERRED TAXES Non-adjust Ch$ 373,226 621,467
OTHER CURRENT ASSETS Non-adjust Ch$ 827,000 4,958,750
OTHER CURRENT ASSETS Dollars 1,228,229 21,488,794
OTHER CURRENT ASSETS Adjustable Ch$ 325,276 328,802
Fixed Assets
FIXED ASSETS Adjustable Ch$ 78,831,220 70,414,451
Other Assets
INVESTMENT REL. CO'S. Adjustable Ch$ 146,844,040 145,369,715
NEG. INVESTMENT GOODWILL Adjustable Ch$ 1,939,310 2,111,096
LONG-TERM DEBTORS Adjustable Ch$ 142,826 177,084
L-T DOC. REC. REL. CO'S. Non-adjust Ch$ 21,334,102 24,859,956
DEFERRED TAX Non-adjust Ch$ 0 0
LONG-TERM BOND Dollars 8,971,602 10,629,611
OTHERS Adjustable Ch$ 3,255,795 3,610,296
Total Assets
Non-adjust. Ch$ 47,494,970 55,552,556
Dollars 64,754,631 70,497,121
Adjustable Ch$ 246,520,852 238,277,149
76
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - CURRENT LIABILITIES
ITEM Currency Up to 90 days
09-30-2003 09-30-2002
Amount Avg. Annual Amount Avg. Annual
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
Long-Term Obligations
1-year maturity Dollars 0 - 3,210 3.0
Adjustable Ch$ 136,073 1.925 - -
Long-Term Obligations with public Adjustable Ch$ 0 - - -
Adjustable Ch$ 0 - - -
Dividend Payable Non-adjust. Ch$ 504,791 - 552,151 -
Accounts Payable Dollars 541,627 - - -
Non-adjust. Ch$ 1,940,261 - 1,851,240 -
Documents Payable Dollars 1,890,905 - 960,626 -
Documents Payable Other Currencies 172,302 - 200,989 -
Miscellaneous Creditors Dollars 742,085 - - -
Miscellaneous Creditors Non-adjust. Ch$ 266,933 - 353,452 -
Doc. and Accts. Payable rel Co Adjustable Ch$ 44,424 - 16,941 -
Doc. and Accts. Payable rel Co Non-adjust. Ch$ 753,691 - 687,758 -
Reserves Adjustable Ch$ 181,525 - 534,544 -
Reserves Dollars 0 - 1,628,602 -
Reserves Non-adjust. Ch$ 5,173,937 - 3,232,336 -
Withholding Non-adjust. Ch$ 1,505,225 - 1,537,933 -
Other Current Liabilities Adjustable Ch$ 4,054,129 - - -
Total Current Liabilities Dollars 3,174,617 - 2,592,438 -
Adjustable Ch$ 4,416,151 - 551,485 -
Non-adjust. Ch$ 10,144,838 - 8,214,870 -
Other Currencies 172,302 - 200,989 -
90 Days to 1 Year
ITEM CURRENCY 09-30-2003 09-30-2002
Amount Avg. Annual Amount Avg. Annual
Thou Ch$ Int. Rate Thou Ch$ Int. Rate
Long-Term Obligations
1-year maturity Dollars - - 22,012,661 3.0
Adjustable Ch$ - - - -
Long-Term Obligations with public Adjustable Ch$ 378,335 4.75 340,062 4.75
Adjustable Ch$ 397,253 5.80 434,896 5.80
Dividend Payable Non-adjust. Ch$ - - - -
Accounts Payable Dollars - - - -
Non-adjust. Ch$ - - - -
Documents Payable Dollars - - - -
Documents Payable Other Currencies - - - -
Miscellaneous Creditors Dollars - - - -
Miscellaneous Creditors Non-adjust. Ch$ - - - -
Doc. and Accts. Payable rel Co Adjustable Ch$ - - - -
Doc. and Accts. Payable rel Co Non-adjust. Ch$ - - - -
Reserves Adjustable Ch$ - - - -
Reserves Dollars - - - -
Reserves Non-adjust. Ch$ - - - -
Withholding Non-adjust. Ch$ - - - -
Other Current Liabilities Adjustable Ch$ - - - -
Total Current Liabilities Dollars - - 22,012,661 -
Adjustable Ch$ 775,588 - 774,958 -
Non-adjust. Ch$ - - - -
Other Currencies - - - -
77
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES CURRENT PERIOD
09-30-2003
ITEM Currency 1-3 Years 3-5 years
Amount Average Amount Average
Thou Ch$ Interest Rate Thou Ch$ Interest Rate
Obligations with Banks and
Financial Institutions Dollars 8,262,125 1.925 24,786,375 1.925
Obligations with public bond
Serie C Adjust. Ch$ 16,946,030 4.75 16,946,030 4.75
Obligations with public bond
Serie D Adjust. Ch$ - - - -
Long-term Creditors Adjust. Ch$ 35,699 - - -
Long-term Creditors Dollars 132,917 11.06 - -
Long-term Reserves Dollars 3,514,837 - - -
Long-term Reserves Adjust. Ch$ 4,108,548 - - -
Deferred Taxes Non-adjust. Ch$ 2,388,179 - - -
Total Long-term Liabilities
Dollars 11,909,879 - 24,786,375 -
Adjust. Ch$ 21,090,277 - 16,946,030 -
Non-adjust. Ch$ 2,388,179 - - -
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES CURRENT PERIOD
09-30-2003
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
Financial Institutions Dollars - - - -
Obligations with public bond Serie C Adjust. Ch$ - - - -
Obligations with public bond Serie D Adjust. Ch$ 4,209,191 5.80 31,377,472 5.80
Long-term Creditors Adjust. Ch$ - - - -
Long-term Creditors Dollars - - - -
Long-term Reserves Dollars - - - -
Long-term Reserves Adjust. Ch$ - - - -
Deferred Taxes Non-adjust. Ch$ - - - -
Total Long-term Liabilities
Dollars - - - -
Adjust. Ch$ 4,209,191 - 31,377,472 -
Non-adjust. Ch$ - - - -
78
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES PREVIOUS
PERIOD 09-30-2002
1-3 Years 3-5 years
Average Average
ITEM Currency Amount Interest Rate Amount Interest Rate
Obligations with banks and Dollars 16,509,497 3 0
financial institutions
Obligations with public Adjustable Ch$ 8,466,113 4.75 16,932,226 4.75
Obligations with public Adjustable Ch$ 0 - 0 -
Long-term Creditors Dollars 870,420 11.06 149,504 11.06
Long-term Creditors Adjust. Ch$ 47,310 - - -
Long-term Reserves Dollars 1,570,502 - - -
Long-term Reserves Adjustable Ch$ 3,873,652 - - -
Deferred Taxes Non-adjust. Ch$ 1,767,370 - - -
Total Long-term Liabilities
- Dollars 18,950,419 - 149,504 -
- Adjust. Ch$ 12,387,075 - 16,932,226 -
- Non-adjust. Ch$ 1,767,370 - - -
Cristalerias de Chile S.A.
NOTE 37: LOCAL AND FOREIGN CURRENCY - LONG-TERM LIABILITIES PREVIOUS
PERIOD 09-30-2002
5-10 Years More than 10 years
Average Average
ITEM Currency Amount Interest Rate Amount Interest Rate
Obligations with banks and
financial institutions Dollars 0 - - -
Obligations with public Adjustable Ch$ 8,466,113 4.75 - -
Obligations with public Adjustable Ch$ 4,741,023 5.8 30,816,651 -
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$ 13,207,136 - 30,816,651 -
- Non-adjust. Ch$ - - - -
79
38. Penalties
As of September 30, 2003 and 2002 no penalties have been applied to the
company, the members of the Board or Company Managers by the SVS or other
administrative authorities.
80
39. Subsequent Events
On October 15, 2003 the company paid eventual dividend N(degree) 155 of Ch$ 15
per share over 64,000,000 shares.
Between the closing date of the financial statements and the issue date of the
present report there have not been other sebsequent events that could alter
significantly the Company's financial and economic situation.
81
40. Environment
On its permanent concern for preserving the environment, as of September 30,
2003 the Company has made investments of Th Ch$ 206,207 corresponding to the
purchase of NOX treatment equipment installed in new furnace B.
As of September 30, 2002 the Company has made investments of Th Ch$ 189,302
for the repair of an electrostatic precipitator to filter the gases issued by
our smelting processes. The company thereby continues in compliance with the
emission norms for particulate material, dictated by the fiscalizing agents.
82
41. TIME DEPOSITS
As of September 30, 2003 and 2002 the Company presents the following
information:
INSTITUTION Currency 2003 2002
Th Ch$ Th Ch$
Banco SantanderSantiago US$ 5,261,345 0
Banco SantanderSantiago Ch$ 0 5,151,002
--------- ---------
TOTAL 5,261,345 5,151,002
83
42. STOCK TRANSACTIONS
During 2003 and 2002 fiscal years members of the board, controlling
stockholders, related individuals and entities did not carry out stock
transactions.
84
43. DISTRIBUTION OF SHAREHOLDERS
The distribution of stockholders as of September 30, 2003 and 2002 is the
following:
% of Shareholding No. of Shareholders
TYPE OF SHAREHOLDER 2003 2002 2003 2002
10% or more shareholding 34.03 34.03 1
Less than 10% shareholding
with investment equal to or
higher than 200 UF 65.83 65.83 263 262
Less than 10% shareholding
with investment lower than
200 UF 0.14 0.14 774 817
TOTAL 100.00 100.00 1,038 1,080
CONTROLLER OF
THE COMPANY 52.14 52.14 3 3
85
44. BOARD COMPENSATION
As of September 30, 2003 and 2002 Th Ch$ 711,726 and Th Ch$ 745,488
respectively, were paid for diverse concepts according to the following
detail:
2003 2002
ThCh$ ThCh$
Participation in previous fiscal year profits 706,426 740,215
Honoraries for session attendance 3,956 4,234
Board Committee Honoraries 1,344 1,039
--------- ---------
TOTAL 711,726 745,488
On the other hand, provisions made for fiscal year 2003 in the amount of Th
Ch$ 96,640 (Th Ch$ 657,908 in 2002).
86
RELEVANT EVENTS
None.
87
CRISTALERIAS DE CHILE S.A.
NOTES TO FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2003
1.- FINANCIAL INDICATORS
09-30-2003 09-30-2002 12-31-2002
LIQUIDITY
Current liquidity times 5.22 3.12 6.72
Acid ratio times 4.79 2.94 6.25
INDEBTEDNESS
Leverage ratio times 0.58 0.55 0.56
Short-term debt % 14.22 26.7 12.38
Long-term debt % 85.78 73.3 87.62
Interest Expenses Coverage times 1.35 7.31 5.25
ACTIVITY
Total assets MM Ch$ 358,770 364,327 367,979
Investments MM Ch$ 20,885 7,883 10,155
Disposal of property MM Ch$ 110 19 18
Inventory turnover times 8.1 7.1 9.1
Inventory permanence days 44.3 50.6 39.4
RESULTS
Sales MM Ch$ 54,533 51,083 72,478
Costs od sales MM Ch$ 33,262 29,421 42,274
Operating result MM Ch$ 17,356 17,508 24,469
Interest expenses MM Ch$ 3,668 2,908 4,711
Non-operating result MM Ch$ (14,052) 2,370 (2,340)
E.B.I.T.D.A. MM Ch$ 12,393 28,152 34,104
After-tax profit MM Ch$ 2,416 16,448 18,014
PROFITABILITY
Return on equity % 1.0 7.1 7.9
Return on assets % 0.7 4.8 5.3
Return on operating assets % 16.6 17.9 24.3
Profit per share $ 37.7 257.0 281.5
Return on dividends % 1.9 3.7 2.9
Current liquidity Ratio of current assets to current liabilities.
Acid ratio: Ratio of uncommitted funds to current liabilities.
Leverage ratio: Ratio of total current liabilities to net worth.
Interest Expenses Coverage: Earnings before taxes and interest divided by interest expenses.
Inventory turnover: Ratio between sales cost of the period and average inventory.
Inventory permanence: Ratio between average inventory and sales cost of the period,
multiplied by 360 days
E.B.I.T.D.A: Earnings before interest, taxes, depreciation, amortization and
extraordinary items.
Return on dividends: Sum of dividends paid
in the last twelve months divided by
market price of stock at closing of
period.
88
The main trends observed in the 2003 fiscal year indicators are:
LIQUIDITY INDICES
An increase in the index can be observed with respect to September 2002 in the
liquidity index due to a short term bank loan payment and that the funds
obtained from the long term bonds placement of August 2002 are invested in
short-term financial instruments.
With respect to December 2002, an decrease in the index can be observed due to
a decrease of current assets.
INDEBTEDNESS INDICES
The leverage ratio has kept almost constant for the analyzed period.
The distribution of short and long-term debt shows a decrease in the
short-term debt, due to the financial resolutions carried out in 2002, which
culminated with the restructuring of the syndicated loan for US$ 50 million.
The interest expenses coverage index registered decreased with respect to the
previous year due to higher interest expenses from bonds issued in August 2002
and a lower net income during the present fiscal year.
ACTIVITY INDICES
Inventory turnover and permanence indeces improved due to actions undertaken
by management to reduce product stock inventories.
PROFITABILITY INDICES
Equity and asset profitability indices show a decrease with respect to
September and December 2002, due to a lower net income during the present
fiscal year.
Likewise, non-operating result decreased due to higher interest expenses and a
negative exchange difference.
On the other hand, the return of dividends indexs shows a decrease with
respect to the previous year due to lower dividens and an increase in the
market price of the company's shares in the stock exchange.
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.
89
As of September 30, 2003, there were financial investments in stocks recorded
in the accounting according to their purchase price of Th Ch$ 4,163 million
whose market value on the same date was Th Ch$ 6,072 million.
3. RESULTS AS OF SEPTEMBER 2003
3a. Individual Result
The Company had non-consolidated sales of Ch$ 54,533 million as of September
2003, which represents a 6.8% increase compared to the previous fiscal year.
Volumes sold increased by 6.7% reaching 185,976 tons, mainly due to higher
sales of bottles for the wine, non-returnable beer, returnable soft drinks and
liquor markets.
Operating income reached Ch$17,356 million, compared to Ch$ 17,508 million in
2002. Higher costs of sales are due to products that had to be imported due to
the reconstruction of furnace B.
Non-operating result was a loss of Ch$14,052 million in 2003 (Ch$ 2,370
million income in 2002). During 2003 a Ch$ 9,902 million loss was recorded
from exchange differences (Ch$ 8,371 million income in 2002). In addition
lower income was registered from Vina Santa Rita and CIECSA, and higher
interest expenses. The former was compensated by higher income from
Cristalchile Inversiones (owner of 40% of Rayen Cura) and Envases CMF, and a
lower loss in Cristalchile Comunicaciones (owner of 50% of
Metropolis-Intercom).
3b. Results in Subsidiaries
As of September 30, 2003, Santa Rita's net income amounted Ch$ 3,735 million
(Ch$ 8,388 million in 2002). In the local market, volumes increased by 1.9%
and prices dropped by 4.4% in real terms, as a result of sharp competition.
During the period, exports at US$ 41.9 million (US$ 40.0 million in 2002)
represented 54.2% of total revenues. The operating income reached Ch$7,863
million, compared to Ch $ 9,184 million in 2002, mainly due to lower prices in
the domestic market. The average price in dollars per case for the export
market for Santa Rita was US$ 33.0 (US$ 30.5 in 2002) whereas the average
price for the industry was US$23.6 per case (US$ 23.2 in 2002). Santa Rita
recorded a Ch$ 3,177 million non-operating loss, compared to a Ch$ 1,274
million non-operating income in 2002, mainly due a loss from exchange
differences.
Red Televisiva Megavision, CIECSA's main subsidiary, registered a Ch$1,762
million operating income, compared with an operating profit of Ch$3,454
million in 2002, due to an increase in costs from higher internal productions.
MEGA reached a 23.0% audience share during the period (25.9% in 2002)FN1. Net
sales increased by 11.9% reaching Ch$18,530 million, due to an increase in
live programming. As of September 2003, MEGA had a net income of Ch$ 1,026
million (Ch$ 1,729 million in 2002). CIECSA had a Ch$ 826 million net income,
compared to a Ch$ 1,063 million net income the previous year.
Envases CMF S.A. registered a Ch$ 713 million net income in 2003 compared with
a Ch$464 million net income in 2002. The company increased sales by 1.8%,
reaching Ch$ 25,035 million during the period. Sales volume increased by 0.4%,
reaching 16,697 tons. Operating income reached Ch$ 2,237 million, 17.6% higher
than the that obtained in 2002, mainly explained by higher operating
efficiencies and the sale of better margin products.
--------
FN1 Measured between 7:30AM and 1:30AM; i.e: 18 hours daily, Monday
through Sunday.
90
In the cable TV business, Cristalchile Comunicaciones S.A. (99.99% owned by
Cristalerias), is the owner of 50% of Cordillera Comunicaciones Ltda., which
in turn is the owner of 95.60% of Metropolis-Intercom S.A.
As of September 30, 2003, Metropolis-Intercom S.A. registered sales of Ch$
33,763 million compared with Ch$35,227 million the previous year.
Metropolis-Intercom had a net loss of Ch$ 7,394 million compared with a net
loss of Ch$ 10,525 million in 2002. This result includes a depreciation charge
of Ch$ 10,040 million (Ch$8,637 million in 2002) corresponding to the HFC
network adquired in July 2000. The company ended the period with 236,000
subscribers of the basic service (239,000 in 2002) and 32,000 subscribers of
bradband services, 63.7% higher than in 2002.
As a result of the abovementioned and the negative goodwill amortization
charge through Cordillera Comunicaciones of Ch$3,128 million in the period
(Ch$3,109 million in 2002), Cristalchile Comunicaciones recorded a net loss of
Ch$ 5,250 million (net loss of Ch$ 6,846 in 2002).
4. CASH FLOW STATEMENT
As of September, 2003 a total net negative flow of Ch$ 12,475 million was
generated, which is explained by a positive flow generated by operating
activities of Ch$ 18,475 million, which was decreased by a negative financing
flow of Ch$7,709 million and a negative flow of investment activities for
Ch$23,241 million.
The operating flow corresponds basically to the collection of sales and
interests income that were reduced by payment to suppliers, personnel and tax
and interests payments.
The negative financing flow can be explained by the payment of dividends.
The investment flow is mainly explained by the incorporation of fixed assets
for CH$ 17,871 , of permanent investments for Ch$4,022 million and other
investment disbursements for Ch$ 6,209 million. In Addition, sales of fixed
assets and other investments amounted Ch$ 418, collection of loans to related
companies for Ch$ 3,048 million and the expiry of future contracts for Ch$
1,469 million.
The foregoing results in an decrease in the final balance of cash and cash
equivalent, which passed from Ch$ 68,416 million as of December 31, 2002 to
Ch$ 60,693 million as of September 30, 2003.
According to the current regulations of the SVS and the Association of
Accountants of Chile, time deposits and agreements with due date under 90 days
have been considered cash and cash equivalent.
5. INTEREST RATES AND EXCHANGE RATE RISK ANALYSIS
o Interest rates
The Company is exposed to the risk of fluctuations in interest rates on its
long-term debt, corresponding to a credit of US$50 million, which was
renegotiated on October 2002 at a variable annual rate of Libor plus 0.8%
percentage points. In addition, the Company issued bonds in two series, for a
total of UF 4.1 million, for a period of 6 and 21 years, and which pay a fixed
rate of 4.75% and 5.8% respectively (the actual placement rate was 5.3% and
6.5% respectively).
91
As of September 30, 2003, the Company had available funds in the amount of
Ch$59,112 million, invested at different terms in financial instruments such
as time deposits, bonds, fixed rate mutual funds and agreements with resale
commitment. This figure does not consider Ch$ 8,972 million in bonds with
maturity on September 15, 2005 and investments in shares for Ch$ 4,163
million.
Currently the Company does not use secondary financial instruments to reduce
risk in the event of fluctuations in interest rates. This policy will be
studied permanently to evaluate the alternatives offered by the market.
o Exchange rate
The Company maintains liabilities in dollars of US$60,3 million, which
represent 10.1% of its assets, and which include a balance of a long-term
syndicated loan of US$50 million.
As of September 30, the Company has investments in dollars of US$101.7 million
in time deposits, bonds and fixed rate mutual funds. In addition, it also has
Dollar purchase future contracts of US$76.6 million.
On the other hand, aproximately 36% of the company's revenues are adjusted by
the exchange rate variation. Costs in foreing currency represent approximately
17% of the total costs.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Glassworks of Chile
(Registrant)
By: Benito Bustamante C.
--------------------
Benito Bustamante C.
Controller
Date: January 8, 2004