Once again it gives me great pleasure to address our shareholders, highlighting the most important events of 2003. During this period, Quiñenco took some important steps in its development and consolidation strategy. We began the year confident that the measures we had taken to strengthen the company during 2002 had been the correct ones. Profits for the year of Ch$37,695 million, compared with losses the previous year, demonstrate we were correct and furthermore, they were achieved in the context of generally weak economic growth and only a modest improvement in consumption levels. During this time, our focus remained on those areas offering the best growth prospects, maximizing shareholder value, improving performance of the companies that make up Quiñenco and identifying opportunities to acquire and divest assets.

The results of our efforts are born out by a 79% rise, to US$1.45 billion, in the net asset value of Quiñenco’s holdings and a 58% surge in the company’s share price during the twelve month period. We feel these advances reflect our shareholders’ positive response to the performance of Quiñenco and its subsidiaries throughout the year.

In the past few years, the company has had to overcome numerous hurdles arising from a difficult business environment. However, the experience has taught us to view problems as challenges and change as opportunity. This philosophy has been decisive in the achievements we have been able to post for the period.

The entity born of the merger of Banco de Chile and Banco Edwards marked its first post-merger year by exceeding all expectations, with record profits of Ch$130,553 million. The bank, which is the second largest in the Chilean financial system and the leading locally-owned institution, offers a highly diversified range of products and services and an extensive branch network, both in and outside Chile. Given the tremendous potential of the bank to broaden its horizons, we are investing in important technological innovation that will put Banco de Chile in the vanguard of quality service to clients.