Quiñenco incorporates the profit and loss from more than 40 companies in its financial results each period. Nonetheless, it only consolidates its operations with a number of its investments, the main operating companies being Madeco and Telefónica del Sur. The profit or loss from other investments such as Banco de Chile and CCU, which are highly relevant to Quiñenco in terms of size and impact on its financial results for any given period, do not consolidate with the Company. Quiñenco’s proportionate share of these companies’ income or loss is included with non-operating results.

Quiñenco’s net earnings increased by nearly 72% in 2007, reaching Ch$105,241 million. Trading profits were key to the performance of the holding during the year, as were results from the equity investments, Banco de Chile and CCU. In addition, important strategic alliances were formed, which will impact the shape and form of the company in periods to come. All in all, 2007 was undoubtedly one of the best years in Quiñenco’s history.

Quiñenco reported consolidated revenues of Ch$700,767 million in 2007, up 5.9% from the 2006 level. Consolidated revenues were boosted by the 6.4% or Ch$38,493 million increase in sales corresponding to Madeco’s operations, as a result of acquisitions it carried out during the year.

In spite of the higher sales level, operating income was affected at both Madeco and Telefónica del Sur, which served to reduce consolidated operating income by 32.4% to Ch$39,038 million. The brass mills business unit of Madeco’s operations was affected by increased competition from domestic and international producers, lower prices and a weak US dollar on exports. Telefónica del Sur faced an increase in SG&A expenses on new product launches, as well as higher depreciation expense associated with equipment and network improvement.

Equity income (net) totaled Ch$98,038 million, its highest level ever, due to the solid results obtained from Quiñenco’s two main equity investments, Banco de Chile and CCU, which contributed Ch$73,297 million and Ch$26,180 million, respectively.