Quinenco S.A. · BCS:QUINENCO
Quinenco — Investor Presentation (October 2021)
51 slides from Quinenco's investor presentation, October 2021
Slide 1: Investor Presentation October 2021
Investor Presentation October 2021
Slide 2: Quiñenco at a Glance
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 3: Ownership Structure
QUIÑENCO AT A GLANCE OWNERSHIP STRUCTURE 17% Luksic Group Minority Shareholders 83% (Chilean Stock Exchanges) 65% Industrial / Financial Services Mining Market Listed on London Stock Exchange Capitalization US$ 3.3 (1) billion (1) Market Capitalization as of September 30, 2021. 3
Slide 4: Quiñenco: Key Figures
QUIÑENCO AT A GLANCE QUIÑENCO: KEY FIGURES Diversified business conglomerate with increasing presence worldwide AGGREGATE ANNUAL ASSETS UNDER MANAGEMENT US$98 US$31 REVENUES OF MAIN bln bln OPERATING COMPANIES 129 68k 3 companies AA /AA+ COUNTRIES JOBS DJSI CHILE CREDIT RATING Quiñenco, through its
Slide 5: Quiñenco: Main Operating Companies
QUIÑENCO AT A GLANCE QUIÑENCO: MAIN OPERATING COMPANIES % Control as of June 2021 51.3% 65.9%2 28.8%3 30.0%4 52.2%5 100% Mkt.Cap1: Mkt.Cap1: Mkt.Cap1: Mkt.Cap1: Mkt.Cap1: US$ 9.3 bln US$ 3.3 bln US$ 4.1 bln US$ 38.4 bln US$ 680 mln US$ 840 mln6 • Leading full services • No.1 Chilean beer • Global le
Slide 6: Quiñenco Overview
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 7: One of Chile's Largest Business Conglomerates with Strong Fundamentals
QUIÑENCO OVERVIEW QUIÑENCO: ONE OF CHILE’S LARGEST BUSINESS CONGLOMERATES WITH STRONG FUNDAMENTALS Strong Commitment to Prestigious Controlling Sustainable Progress Shareholders Sound Financial Proven Track Record in Position Value Creation Diversified Chile risk with increasing International Domina
Slide 8: Locally and Internationally Well-Known and Prestigious Shareholders
QUIÑENCO OVERVIEW Prestigious Controlling Shareholders LOCALLY AND INTERNATIONALLY WELL-KNOWN AND PRESTIGIOUS SHAREHOLDERS First Class Board and Management BOARD OF DIRECTORS SENIOR MANAGEMENT Francisco Pérez Mackenna Chief Executive Officer Rodrigo Hinzpeter Kirberg Chief Counsel Mauricio Lob de la
Slide 9: Over 50 Years of History and Experience
QUIÑENCO OVERVIEW Proven Track Record in Value Creation OVER 50 YEARS OF HISTORY AND EXPERIENCE 1957 • Sociedad Forestal Quiñenco S.A. is created. • Quiñenco carries out US$500 mln capital increase. • SM SAAM acquires 51% of two concessions in Puerto • Quiñenco increases stake in CSAV to 37.44%. 201
Slide 10: Value Creation System
QUIÑENCO OVERVIEW Proven Track Record in Value Creation VALUE CREATION SYSTEM Quiñenco has developed a value creation system through the professional management of its investments . . . Acquisition Restructuring Max. Profitability Divest/Retain Acquisitions of companies Restructuring and Develop and
Slide 11: Corporate Level Transactions
QUIÑENCO OVERVIEW Proven Track Record in Value Creation CORPORATE LEVEL TRANSACTIONS . . . which has led to various transactions throughout its history, generating US$1.8 billion in profits over the last 23 years from divestments of US$4.4 billion . . . US$ 959 US$ 766 (plus US$286 1 mln credit to e
Slide 12: Strong Growth in NAV
QUIÑENCO OVERVIEW Proven Track Record in Value Creation STRONG GROWTH IN NAV . . . and an average annual compound growth rate of 9% in the net value of Quiñenco’s assets over the past 17 years(1) 8,100 7,873 Quiñenco-NAV(2) 6,858 6,541 6,565 (MUS$) 5,789 5,875 6,003 5,351 5,364 5,137 4,660 3,071 3,2
Slide 13: Favorable Performance of NAV, Share Price & Dividends
QUIÑENCO OVERVIEW Proven Track Record in Value Creation FAVORABLE PERFORMANCE OF NAV, SHARE PRICE & DIVIDENDS NAV(1)/Share Price Trend as of June 30, 2021 4,000 3,524 3,500 3,000 NAV: US$8.1 bln 2,500 2,000 1,589 Mkt.Cap: US$3.6 bln 1,500 1,000 500 0 NAV per share (Ch$) Share price (Ch$) (1) Market
Slide 14: Investment Criteria
QUIÑENCO OVERVIEW Proven Track Record in Value Creation INVESTMENT CRITERIA Based on its investment criteria Brand & consumer franchise development potential Controlling stakes Sufficient critical mass Access to strategic partners / Prior operating commercial or industry alliances / experience syner
Slide 15: Leading Market Positions
QUIÑENCO OVERVIEW Dominant Market Positions LEADING MARKET POSITIONS The company’s investment strategy allows it to maintain a leading position in all its business areas and product segments #2 Cable company worldwide Leading beverage company in Chile #2 Beer in Argentina e #2 Loans in Chile #2 Fuel
Slide 16: Controlling or Influential Interest Along with World Class Strategic & Commercial Alliances
QUIÑENCO OVERVIEW Controlling interest & World Class Partners CONTROLLING OR INFLUENTIAL INTEREST ALONG WITH WORLD CLASS STRATEGIC & COMMERCIAL ALLIANCES Quiñenco partners with world class players to develop its markets and products to take advantage of combined know-how, experience and financial ca
Slide 17: Diversified Investments
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing International Presence DIVERSIFIED INVESTMENTS Becoming one of the most diversified holding companies in Chile . . . Investments by Sector(1) Net Asset Value(2) (NAV) (US$ 6.8 billion as of June 30, 2021) (US$ 8.1 billion as of June 30, 2021)
Slide 18: Growing and Diversified Revenues
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing International Presence GROWING AND DIVERSIFIED REVENUES . . . achieving diversified revenues with a positive growth trend, except in 2020 due to global pandemic Consolidated Revenues(1) Aggregate Revenues by Sector(2) (MUS$) (YTD June 2021) Po
Slide 19: Sound Results
QUIÑENCO OVERVIEW Sound Financial Position SOUND RESULTS Sound bottom line results Net Income(1) Net Income(2) (MUS$) (YTD June 30, 2021, MUS$) 643.5% 781 781 619 340 289 248 109 25 46 18 149 -35 105 Manufacturing Port Services Other (3) . Energy Financial Services Total Transport 2017 2018 2019 202
Slide 20: Quiñenco Holding Conservative Financial Structure
QUIÑENCO OVERVIEW Sound Financial Position QUIÑENCO HOLDING CONSERVATIVE FINANCIAL STRUCTURE Long term investments are financed with equity and long term debt in Chilean pesos . . . Assets Liabilities and Equity US$ 7.0 billion as of June 2021 US$ 7.0 billion as of June 2021 Cash Other ST Debt 4% 3%
Slide 21: Low Financial Corporate Debt
QUIÑENCO OVERVIEW Sound Financial Position LOW FINANCIAL CORPORATE DEBT . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt (MUS$) 1200 0.4 1000 0.35 0.3 800 0.25 600 0.2 400 0.15 0.1 200 0.05 0 0 2017 2018 2019 2020 jun-21 Net Debt Debt/Capitalizatio
Slide 22: Stable Dividend Cashflow
QUIÑENCO OVERVIEW Sound Financial Position STABLE DIVIDEND CASHFLOW . . . to the parent company based on good operating company performance Dividends Composition of Dividends (MUS$) (YTD June 2021) SM SAAM IRSA/CCU 216 10% 5% 196 165 LQIF/Banco 110 de Chile 90 34% 2017 2018 2019 2020 jun-21 CSAV/HL
Slide 23: Sustainability Policy
QUIÑENCO OVERVIEW Strong Commitment to Sustainable Progress SUSTAINABILITY POLICY Quiñenco has a strong commitment to sustainable progress as a central part of its business model, based on four strategic pillars SUSTAINABLE HUMAN COMMITMENT TO THE LEADERSHIP EXCELLENCE DEVELOPMENT COUNTRY • We are a
Slide 24: Recent Events
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 25: Invexans Restructures Its Businesses, Establishing Parent Company of Enex in the UK
RECENT EVENTS INVEXANS RESTRUCTURES ITS BUSINESSES, ESTABLISHING PARENT COMPANY OF ENEX IN THE UK • On September 16, 2020, an Extraordinary Shareholders’ Meeting of Invexans approved a corporate reorganization, with the aim to boost the company’s global growth by structuring under independent compan
Slide 26: Nexans Signs Agreement to Purchase Colombian Premium Cable Manufacturer Centelsa
RECENT EVENTS NEXANS SIGNS AGREEMENT TO PURCHASE COLOMBIAN PREMIUM CABLE MANUFACTURER CENTELSA • On September 10, 2021, Nexans announced a share purchase agreement with Mexican group Xignux, to acquire Centelsa, a premium cable manufacturer in Latin America, based in Colombia. • Centelsa, with more
Slide 27: SM SAAM Acquires Remaining 50% of Aerosan; Quiñenco Increases Stake in SM SAAM
RECENT EVENTS SM SAAM ACQUIRES REMAINING 50% OF AEROSAN AND FURTHER STRENGTHENS TUG BOAT DIVISION / QUIÑENCO INCREASES STAKE IN SM SAAM • On October 28, 2020, SM SAAM announced the acquisition of 50% of Aerosan, which provides airport services in Chile, Colombia and Ecuador, in US$32 million, thus r
Slide 28: IRSA Reaches 65.9% Ownership of CCU After Tender Offer / CCU Dividend
RECENT EVENTS INVERSIONES Y RENTAS REACHES 65.9% OWNERSHIP OF CCU AFTER SUCCESSFUL TENDER OFFER / CCU ANNOUNCES EVENTUAL DIVIDEND • On May 19, 2021, Inversiones y Rentas S.A. (IRSA), controlling shareholder of CCU and owned in equal parts by Quiñenco and Heineken, launched a Tender Offer for up to 1
Slide 29: Quiñenco Increases Stake in CSAV to 66.5% and Receives Dividends
RECENT EVENTS QUIÑENCO INCREASES ITS STAKE IN CSAV REACHING 66.5% AND RECEIVES DIVIDENDS AFTER TEN YEARS • During April 2021, Quiñenco acquired an additional 4.7% stake of CSAV on the market for a total of US$148 million. Thus, Quiñenco’s total ownership in CSAV reached 66.45%. • For the first time
Slide 30: Hapag-Lloyd Strengthens Presence in Africa and Signs Agreement to Invest in German Port
RECENT EVENTS HAPAG-LLOYD STRENGTHENS PRESENCE IN AFRICA AND SIGNS AGREEMENT TO INVEST IN GERMAN PORT • On July 8, 2021, Hapag-Lloyd announced the acquisition of the Dutch container shipping company Nile Dutch Investments B.V. (NileDutch), after receiving approval from worldwide antitrust authoritie
Slide 31: Quiñenco Announces Interim Dividend of US$350 Million
RECENT EVENTS QUIÑENCO ANNOUNCES INTERIM DIVIDEND OF US$350 MILLION • On October 7, 2021, Quiñenco announced the Board’s decision to distribute an interim dividend of Ch$171.26168 per share, payable as of November 2, 2021. The total interim dividend amounts to Ch$284,767 million or approximately US$
Slide 32: Global COVID-19 Pandemic Response
RECENT EVENTS GLOBAL COVID-19 PANDEMIC RESPONSE In response to the impact of the global pandemic, group companies have focused on: Protecting the health and safety of employees and supporting clients. Operational continuity in order to maintain chain of goods and services. Preserve financial liquidi
Slide 33: Conclusions
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 34: Outlook
CONCLUSIONS OUTLOOK FACTORS THAT CONTRIBUTE TO QUIÑENCO’S ABILITY TO PURSUE AND UNDERTAKE NEW INVESTMENT OPPORTUNITIES PORTFOLIO HEALTHY STRONG CASH OPTIMIZATION FINANCIAL POSITION STRUCTURE • Good performance • Sound financial • Strong cash levels of main operating indicators • Conservative compani
Slide 35: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION QUINENCO S.A.
Slide 36: Appendix: Main Operating Companies
APPENDIX MAIN OPERATING COMPANIES
Slide 37: Banco de Chile: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (June 2021) • Established in 1893, Banco de Chile has a highly recognized name in Chile. 50.0% 50.0% • One of the most profitable banks in terms of return on assets and equity. • Assets of US$65 billion. 51.2% • Over 13,100 employees • Nationwide network
Slide 38: Banco de Chile: ROAE, Operating Revenues, Net Income
MAIN OPERATING COMPANIES ROAE • In 2020, operating revenues decreased 3.8%, based on lower customer income, particularly a lower contribution from demand deposits and lower income from loans. Loan loss provisions went up 33% mainly due to additional provisions anticipating the impacts of the pandemi
Slide 39: CCU: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (June 2021) • Founded in 1850, CCU is a multi-category branded beverage company operating in Chile, Argentina, Bolivia, Colombia, Paraguay and Uruguay, with an extensive wine export business to more than 50.0% 50.0% 80 countries. • Assets of US$3.5 billio
Slide 40: CCU: EBITDA by Business Segment, Sales, EBITDA
MAIN OPERATING COMPANIES EBITDA* by Business Segment (YTD June 2021) Wine • Sales grew 1.9% in 2020, reflecting growth in the Chile and Wine segments, compensating a decrease in International Business. 11% International • EBITDA reached MUS$407 in 2020, below 2019, mainly reflecting Business lower E
Slide 41: Invexans: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (June 2021) • Invexans’ main asset until early 2020 was its 28.3% stake in Nexans, a leading cable manufacturer with worldwide 99.7% presence, based in France. Since April 2020, Invexans also holds 100% ownership of Enex, fuel distribution company with pr
Slide 42: Invexans: Operating Income, Net Income
MAIN OPERATING COMPANIES • In 2020, the performance of Nexans, Invexans’ main asset, Operating Income (Loss) (MUS$) improved substantially from the loss reported in 2019 to a gain of €78 million, due to lower restructuring costs, a gain on asset disposals and cost savings, offsetting lower operating
Slide 43: Nexans: Sales by Key End Markets
MAIN OPERATING COMPANIES SALES* BY KEY-END MARKETS (YTD June 2021) Other Activities 25% • Nexans is a worldwide leader in the cable industry with an Building & industrial footprint in 38 countries and commercial activities Territories worldwide, after over a century of progress. 42% • Headquartered
Slide 44: Enex: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (June 2021) • Enex S.A. has a network of 446 service stations, with 175 convenience stores in Chile, 41 travel centers in the USA and 59 service stations in Paraguay. 99.7% • Main business activities: • Distribution of fuels through its service stations.
Slide 45: Enex: Sales, Net Income, Operating Income
MAIN OPERATING COMPANIES Sales (MUS$) • In 2020 sales decreased 17.9% to MUS$2,901, mainly due to 3,532 the negative impact of the pandemic and the restrictions 3,128 related to it, particularly during the 2Q, leading to an 2,901 2,595 annual decline of 13.6% in sales volumes. 7.3% • Operating incom
Slide 46: CSAV: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (June 2021) • CSAV, founded in 1872, is one of the oldest shipping Others companies in the world. 66.5% 33.5% • Its activities include overseas transport of containerized cargo through its investment in Hapag-Lloyd. • Total assets as of December 2019 were
Slide 47: CSAV: Operating Income, Net Income
MAIN OPERATING COMPANIES • In 2020, CSAV reported a net gain of MUS$222, primarily Operating Income (Loss) reflecting the positive performance of its main asset, Hapag- (MUS$) Lloyd, which reported net income of MUS$1,058, up from MUS$405 in 2019, boosted by higher average freight rates and 4 effect
Slide 48: Hapag-Lloyd: Transported Volume by Trade
MAIN OPERATING COMPANIES • Hapag-Lloyd is a leading global liner shipping company, with a TRANSPORTED VOLUME BY TRADE fleet of 237 modern ships, 12 million TEU transported a year (YTD June 2021) and a total capacity of around 1.7 million TEU. • Founded in 1847 and headquartered in Hamburg, Germany,
Slide 49: SM SAAM: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (June 2021) Others • SM SAAM is dedicated to port services and management of 52.2% 47.8% port concessions, including three main business areas: port terminals, tug boats, and logistics. • SM SAAM has presence in 11 countries and 74 ports in America. • SM
Slide 50: SM SAAM: Sales, Operating Income, Net Income
MAIN OPERATING COMPANIES • In 2020, SM SAAM’s consolidated sales reached MUS$584, up Sales (MUS$) by 10.2%, mainly due to consolidation with the tug boat operations in Brazil, and also at logistics, boosted by the consolidation with Aerosan as of November 2020. Revenue at 584 port terminals decrease
Slide 51: Quiñenco S.A.
QUINENCO S.A.