Quinenco S.a. · BCS:QUINENCO
Quinenco — Investor Presentation (June 2012)
45 slides from Quinenco's investor presentation, June 2012
Slide 1: Quiñenco S.A.
QUIÑENCO S.A. 1 June 2012
Slide 2: Agenda
1 Quiñenco Overview 2 Recent Events 3 Financial Overview 4 Main Operating Companies 5 Conclusions 2
Slide 3: Quiñenco
Quiñenco Quiñenco is one of Chile’s largest business conglomerates with US$49 billion in assets under management Companies managed by Quiñenco generated sales revenue of US$12 billion in 2011 The Quiñenco group of companies employs around 34,500 people in Chile and abroad 3
Slide 4: Ownership Structure
Ownership Structure Luksic Group Minority Shareholders (Chilean Stock Exchanges) 81% 19% Mining Industrial/ Financial Services Market Capitalization US$ 3.6(1) billion (1): Market Capitalization as of May 31, 2012. 4
Slide 5: Quiñenco: Main Operating Companies
Quiñenco: Main Operating Companies % Control as of March 2012 59.3% 66.1% 54.4% 37.4% 37.4% 100% Banco de CCU Madeco CSAV SAAM Enex Chile Mkt.Cap (1): US$ 269 mln Mkt.Cap(1):US$ 0.9 bln Mkt.Cap(1):US$ 1.0 bln US$ 633 mln Mkt.Cap(1):US$ 12.0 bln Mkt.Cap(1)V. :US$ 4.1 blnMMUS$ Bursátil: 1,9 mil 1st b
Slide 6: First Class Board and Management
First Class Board and Management Board of Directors Guillermo Luksic Andrónico Luksic Jean-Paul Luksic Gonzalo Menéndez Hernán Büchi Buc Matko Koljatic Fernando Cañas Craig Craig Fontbona Duque Director Maroevic Berkowitz Chairman Vice Chairman Director Director Director Director Senior Management
Slide 7: Over 50 years of history
Over 50 years of history 1957-1996 1997-2004 2005-2011 1957: Sociedad Forestal Quiñenco S.A is 1997: Quiñenco’s subsidiary VTR sells 2008: Banco de Chile and Citibank Chile created. 100% of mobile phone company, Startel, to merge on January 1st. CTC. Historical transaction between Madeco and 1960’s:
Slide 8: Focused Diversification
Focused Diversification Food & Beverage Food & Beverage Food & Beverage Food & Beverage Food & Beverage Food & Beverage Hotels Hotels Hotels Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Telecom Financial Services Financial Services Telecom Telecom Financial Services Transpor
Slide 9: Quiñenco – Investment Criteria
Quiñenco – Investment Criteria Î Brand & consumer franchise development potential Î Sufficient critical mass Î Prior operating or industry experience Î Access to strategic partners/commercial alliances/ synergies Î Growth platform or add-on acquisition potential Î Controlling stakes 9
Slide 10: World Class Strategic & Commercial Alliances
Quiñenco: World Class Strategic & Commercial Alliances Beverage & Food Quiñenco partners with world class players to develop its markets and products to take advantage of combined know-how, experience and financial capacity 10
Slide 11: Value Creation System
Value Creation System Quiñenco has developed a value creation system through the professional management of its investments Acquisitions Restructurings Development & maximization of profitability of business portfolio Divestments Divest Continuous growth of Shareholder value Acquisition 11
Slide 12: Corporate Level Transactions
Corporate LevelTransactions Quiñenco has carried out various transactions throughout its history, generating US$2.0 billion in profits over the last 15 years from divestments of US$4.7 bln Startel 2,014 VTR LD Hipercable OHCH 1,085 842 * Hotels 68 44 Telecom Retail Real estate/Hotels Beverage & Food
Slide 13: Leading Market Positions
Leading Market Positions The company’s investment strategy allows it to maintain a leading position in all of its business areas and product segments: Business Industry Product Ranking(1) Market Share (1) Financial Loans 1 19% Servicies Deposits 1 23% Beer Chile 1 80% Beer Argentina 2 23% Carbonated
Slide 14: Diversified Investments
Diversified Investments Quiñenco is one of the most diversified holding companies in Chile. During its history it has invested in sectors where it has a recognized track-record and experience in the industry. Investments by Sector Net Asset Value(1) (NAV) (US$ 4.4 billion as of March 31, 2012) (US$
Slide 15: NAV & Share Price Trend
NAV & Share Price Trend Note: Market information and book values as of March 31, 2012 NAV: US$6.9 billion Market Cap: US$4.2 billion 15
Slide 16: Diversified Revenues and Results
Diversified Revenues and Results Quiñenco has achieved diversified revenues and results, thus generating stable cash flows Aggregate Revenues by Sector(1) Net Income (2) (YTD December 2011) (YTD December 2011, MUS$) Financial Energy Services 185.3 19% 20% Beverage & Food 9.0 5.8 15% Transport Manufa
Slide 17: Diversified Revenues and Results (1Q 2012)
Diversified Revenues and Results (1Q 2012) Quiñenco has achieved diversified revenues and results, thus generating stable cash flows Aggregate Revenues by Sector(1) Net Income (2) (YTD March 2012) (YTD March 2012, MUS$) Financial Energy Services 23% 23% 55.2 Port & Shipping 17.9 Serv. 4.5 4% Manufac
Slide 18: Stable Dividend Cashflow
Stable Dividend Cashflow Good operating company performance allows a strong dividend flow to the parent company Dividends Composition of Dividends (Millions of US$) (YTD March 2012) 313 CCU 218 220 26% 98 51 2008 2009 2010 2011 YTD Mar 2012 Banchile 74% Other Banchile Seguros de Vida CSAV Entel Tels
Slide 19: Quiñenco – Strong Fundamentals
Quiñenco – Strong Fundamentals Dominant position Quiñenco’s companies are leaders in their respective markets. in its markets Proven track record in Holding has proven track record in value creation by evidenced by sale of investments for approximately US$ 4.7 bln and gains on value creation sal
Slide 20: Recent Events
1 Quiñenco Overview 2 Recent Events 3 Financial Results 4 Main Operating Companies 20
Slide 21: Quiñenco acquires Shell's assets in Chile
Quiñenco acquires Shell’s assets in Chile March 31, 2011, Quiñenco announces agreement with Royal Dutch Shell PLC (Shell) to acquire Shell’s assets in Chile, including the distribution of fuel through Shell’s service stations across the country, distribution of lubricants, and other related busine
Slide 22: Quiñenco acquires a 37.44% stake in CSAV
Quiñenco acquires a 37.44% stake in CSAV March 22, 2011: Quiñenco acquired 10% stake in Compañía Sud Americana de Vapores (CSAV) from Marinsa, controlling entity of CSAV, for US$120 million. April 6, 2011: Quiñenco acquires an additional 8% stake in CSAV, also from Marinsa, for US$120 million.
Slide 23: SAAM Spin-off
SAAM Spin-off As of February 15, SAAM (cargo and shipping business) was spun- off from CSAV. SM-SAAM is established as controlling entity of SAAM. CSAV shareholders as of February 29 received 1.1168666991 shares of SM-SAAM for each share of CSAV. SM-SAAM shares are traded as of March 1 on th
Slide 24: CSAV – SAAM: Current Boards of Directors
CSAV – SAAM: Current Boards of Directors CSAV’s Board of Directors is composed of 11 members Directors: Quiñenco elected 6 directors (Guillermo Luksic-Chairman, Francisco Pérez, Hernán Büchi, Gonzalo Menéndez, Juan Francisco Gutiérrez, José de Gregorio) SM-SAAM’s Board of Directors is composed
Slide 25: Quiñenco signs agreement to acquire Terpel's assets in Chile
Quiñenco signs agreement to acquire Terpel’s assets in Chile September 2, 2011, Quiñenco announces agreement with Terpel (Organización Terpel and Petrolera Nacional) to acquire its assets in Chile, including the distribution of fuel through its service stations across the country, together with ot
Slide 26: Quiñenco raises funds through debt and equity
Quiñenco raises funds through debt and equity Bond Issuance During January 2012 Quiñenco successfully placed UF 4.650.000 (US$200 million) in bonds in the local market. This issuance is in addition to UF7.000.0000 (US$ 330 million) placed during 2011, also in the local market. Capital Increase I
Slide 27: Financial Results
1 Quiñenco Overview 2 Recent Events 3 Financial Results 4 Main Operating Companies 27
Slide 28: Sound Results
Sound Results Revenues(1) Net Income (2) (MUS$) (MUS$) 4,425 598 517 2,490 2,589 2,169 319 IFRS IFRS 1,428 180 736 109 18 2008 2009 2010 2011 YTD Mar YTD Mar 2008 2009 2010 2011 YTD Mar YTD Mar 2011 2012 2011 2012 Quiñenco started reporting in accordance with IFRS in 2009 (comparative with 2008).
Slide 29: Conservative Financial Structure
Quiñenco Holding: Conservative Financial Structure Long term investments are financed with equity and long term debt in Chilean pesos Assets Liabilities and Equity US$ 4.7 billion as of March 2012 US$ 4.7 billion as of March 2012 Other 5% Cash LT Debt 17% 16% Other Liabilities 2% ST Debt 1% SH Equit
Slide 30: Low Financial Corporate Debt
Low Financial Corporate Debt Asset disposals and strong dividend flow have allowed Quiñenco to maintain low levels of debt March MUS$ 2008 2009 2010 2011 2012 Debt 433 342 351 781 1,010 Cash -110 -212 -1.472 -329 -915 Net Debt 323 130 -1.121 452(1) 95(1) Net Debt MUS$ 323 452 (1) 130 95 -1.121 2008
Slide 31: Main Operating Companies
1 Quiñenco Overview 2 Recent Events 3 Financial Results 4 Main Operating Companies 5 Conclusions 31
Slide 32: Banco de Chile
Banco de Chile Established in 1893, Banco de Chile has a highly recognized name in Chile 1st largest bank in the Chilean financial system in terms of loans One of the most profitable banks in terms of return on assets and equity Assets of US$42 billion Over 14,000 employees Nationwide ne
Slide 33: Banco de Chile
Banco de Chile Financial Services (MUS$) During 1Q 2012 the Bank’s operating income ROAE grew 11.2% Net income in 1Q 2012 was MUS$249, 3.7% 26,6% 27,0% 24,7% 28,1% 22,7% 23,8% above 2011 results. ROAE = 23.8%, one of the highest in the Chilean financial system. 2008 2009 2010 2011 Mar-11 Mar-1
Slide 34: CCU
CCU Founded in 1850, CCU is the largest brewery and beverage producer in Chile, and the second brewery in Argentina. Assets of US$2.5 billion. Over 5,700 employees. 18 facilities in Chile with more than 325,000 m2. 4 facilities in Argentina with over 80,000 m2 Extensive distribution netw
Slide 35: CCU
CCU Beverage & Food MUS$ Sales grew by 16.2% in 1Q 2012 to MUS$577 EBITDA by Business Segment Mar 2012 Net income in 1Q 2012 reached MUS$83, Spirits Other Wine 2% 7% 11.6% below the previous period, mainly due to 4% Beer a non-recurring gain reported in 2011. Argentina Beer Chile 17% 47% EBITD
Slide 36: Madeco
Madeco Founded in 1944, Madeco is one of the leading producers in the region of flexible packaging, and a relevant actor in brass mills and profiles. Global presence through exports of a variety of copper and aluminum products to the North American and European markets with over 5,000 customers.
Slide 37: Madeco
Madeco Manufacturing MUS$ Sales in 1Q 2012 decreased by 4.6% to Sales MUS$103 mainly due to lower sales of brass mills, partially compensated by higher sales of the flexible packaging and profiles units. Madeco obtained a net income of MUS$33 in 1Q 2012 mainly reflecting negative goodwill due 38
Slide 38: Nexans
Nexans Manufacturing Nexans is the worldwide leader in the cable industry with 2011 Sales by Origin presence in 40 countries and commercial activities worldwide, after over a century of progress. Headquartered in Paris, France, Nexans produces cables and cabling systems at more than 90 productio
Slide 39: Enex
Enex Market Share of Liquid Fuel Sales Enex S.A. has a network of 292 service stations, with 64 (December 2011) convenience stores Otros Main business activities: Petrobras 5% 12% - Distribution of fuels through its service stations - Distribution of fuels to industrial clients and transport sec
Slide 40: CSAV
CSAV CSAV, founded in 1872, is one of the oldest shipping companies in the world. Its activities include overseas transport of containerized cargo, liquid and solid bulk, refrigerated cargo, and vehicles. Has operations in Brazil, Uruguay and China. In 2011 the Company transported a total of
Slide 41: CSAV
CSAV Transport (MUS$) During 1Q 2012 CSAV’s sales reached US$832 SALES million, 42.8% below 2011, as a result of the 4,887 5,215 5,152 restructuring plan and the spin-off of SAAM. Net income in 1Q 2012 was a loss of MUS$205, 3,034 10.2% greater than the previous quarter. 1,455 However, the net
Slide 42: SAAM
SAAM SAAM is dedicated to port services and management of port concessions, including three main business areas: port terminals, tug boats, and logistics. SAAM has presence in 11 countries and 58 ports in America. SAAM currently has 10 port terminals and 125 tug boats, being the 2nd largest po
Slide 43: Conclusions
1 Quiñenco Overview 2 Recent Events 3 Financial Overview 4 Main Operating Companies 5 Conclusions 43
Slide 44: Outlook
Outlook Factors that contribute to Quiñenco’s ability to pursue and undertake new investment opportunities Healthy Portfolio Low Level Financial Optimization of Debt Structure Good performance of main Sound financial indicators Strong cash levels operating companies should Well structured Ba
Slide 45: Thank you for your attention
QUIÑENCO S.A. Thank you for your attention 45