Quinenco S.A. · BCS:QUINENCO
Quinenco — Investor Presentation (June 2017)
47 slides from Quinenco's investor presentation, June 2017
Slide 1: Company Presentation / June 2017
Company Presentation / June 2017
Slide 2: Quiñenco Overview
Financial Conclusions Quiñenco Overview Overview Recent Events 2
Slide 3: Ownership Structure
Ownership Structure Minority Shareholders (Chilean Stock Exchanges) 81% 19% Mining Industrial / Financial Services Market Capitalization US$ 4.5(1) billion (1) Market Capitalization as of May 31, 2017. 3
Slide 4: Quiñenco: Diversified business conglomerate
Quiñenco Diversified business conglomerate • Quiñenco is one of Chile’s largest business conglomerates with US$71 billion in assets under management • Companies managed by Quiñenco generated sales revenue of US$23 billion in 2016 • The Quiñenco group of companies employs around 65,000 people in Chil
Slide 5: Quiñenco: Main Operating Companies
Quiñenco: Main Operating Companies % Control as of March 2017 51.2% 60.0% 29.0%(2) 56.0%(3) 52.2% 100% Mkt.Cap(1): Mkt.Cap(1): Mkt.Cap(1): Mkt.Cap(1): Mkt.Cap(1): US$ 4.9 bln US$ 2.4 bln CSAV: US$ 1.2 bln US$ 860 mln(4) US$ 12.5 bln US$ 900 mln HL: US$3.7 bln • 1st bank in Chile in • No.1 Chilean be
Slide 6: First Class Board and Management
First Class Board and Management Board of Directors Andrónico Luksic C. Jean-Paul Luksic F. Nicolás Luksic P. Andrónico Luksic L. Fernando Cañas B. Gonzalo Menéndez D. Hernán Büchi B. Matko Koljatic M. Chairman Vice Chairman Director Director Director Director Director Director Senior Management • F
Slide 7: Over 50 Years of History
Over 50 Years of History 1957 - 2009 2010 - 2014 2015 - 2016 1957 Sociedad Forestal Quiñenco S.A is created. 2010 Quiñenco divests Telsur. 2015 Quiñenco launches Tender Offer for 19.55% Empresas Lucchetti S.A. and Forestal Citigroup exercises its options for 17.04% of of Invexans, increasing its sta
Slide 8: Focused Diversification
Focused Diversification • Beverage & Food • Beverage & Food • Beverage & Food • Beverage & Food • Beverage & Food • Beverage & Food • Hotels • Hotels • Hotels • Manufacturing • Manufacturing • Manufacturing • Manufacturing • Manufacturing • Telecom • Financial Services • Financial Services • Telecom
Slide 9: Investment Criteria
Investment Criteria Brand & consumer franchise development potential Sufficient critical mass Prior operating or industry experience Access to strategic partners / commercial alliances / synergies Growth platform or add-on acquisition potential Controlling stakes 9
Slide 10: World Class Strategic & Commercial Alliances
World Class Strategic & Commercial Alliances Beverage & Food Manufacturing Financial Port Services Energy Transport 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 . . . 4 Divest/Retain Continuous growth of shareholder value 3 Max. Profitability Hoteles 2 Restructuring 1 Acquisition •Restructuring and •Develop and maximize •Acquisitions o
Slide 12: Corporate Level Transactions
Corporate Level Transactions . . . which has led to various transactions throughout its history, generating US$1.8 billion in profits over the last 19 years from divestments of US$4.3 billion 1,759 937 728 (1) 59 38 19 -10 -11 Telecom Retail Real estate/HotelsBeverage & Food Utility Financial Servic
Slide 13: Strong Growth in NAV
Strong Growth in NAV Over the past 13 years, the net value of Quiñenco’s assets has grown at an average compound annual rate of 11% (1) (1) Quiñenco - NAV (MUS$) 6,858 6,541 6,050 5,789 5,351 5,364 5,137 4,660 3,071 3,275 2,721 1,989 2,028 2,142 1,450 2003 2004 2005 2006 2007 2008 2009 2010 2011 201
Slide 14: 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) Loans 2(2) 18% Financial Services Deposits 1 23% Chile (non-alcoholic and alcoholic beverages) (3
Slide 15: Diversified Investments
Diversified Investments Becoming one of the most diversified holding companies in Chile Investments by Sector(1) Net Asset Value(2) (NAV) (US$ 5.6 billion as of March 31, 2017) (US$ 6.0 billion as of March 31, 2017) (Percentages calculated over gross assets) Cash 9% Cash Other 1% Financial Services
Slide 16: NAV, Share Price & Dividends
NAV, Share Price & Dividends NAV/Share Price Trend as of March 31, 2017 3.000 2,448 2,509 2,363 2,339 2.416 (1) 2.500 2,064 1,981 1,999 2,017 1,953 2,043 1,974 2,077 1,990 2,025 2,031 2,004 2,160 NAV : US$6.0 bln 2.000 (1) Mkt Cap: US$4.3 bln 1.500 1.733 1,540 1,610 1,459 1,575 1.000 1,399 1,275 1,4
Slide 17: Financial Overview
Quiñenco Financial Overview Recent Events Conclusions Overview 17
Slide 18: Growing and Diversified Revenues
Growing and Diversified Revenues Quiñenco has achieved diversified revenues with a positive growth trend . . . Consolidated Revenues(1) Aggregate Revenues by Sector (2) (MUS$) (YTD March 2017) Port Services Financial Services 5,884 2% 10% 5,399 4,879 4,912 Beverage & Food 11% Transport 38% 1,300 1,3
Slide 19: Sound Results
Sound Results . . . and sound bottom line results Net Income(1) Net Income (2) (MUS$) (YTD December 2016, MUS$) 515 264 167 30 -15 26 39 18 CCU Manufacturing Financial Energy Transport Port Services Other (3) Total Services 266 (YTD March 2017, MUS$) 188 146 48 67 2013 2014 2015 2016 mar-16 mar-17 1
Slide 20: Quiñenco Holding: Conservative Financial Structure
Quiñenco Holding: Conservative Financial Structure Long term investments are financed with equity and long term debt in Chilean pesos . . . Assets Liabilities and Equity US$ 5.6 billion as of March 2017 US$ 5.6 billion as of March 2017 Cash Other ST Debt 8% 1% 1% Other Liabilities 2% LT Debt 17% SH
Slide 21: Low Financial Corporate Debt
Low Financial Corporate Debt . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt MUS$ 735 632 660 401 57 2013 2014 2015 2016 mar-17 MUS$ 2013 2014 2015 2016 Mar-2017 Debt 810 873 823 1,196 1,213 Cash -753 -472 -191 -461 -553 Net Debt 57 401 632 735 66
Slide 22: Stable Dividend Cashflow
Stable Dividend Cashflow . . . to the parent company based on good operating company performance Dividends Composition of Dividends (MUS$) (YTD May 2017) 448 SM SAAM IRSA/ 16% 19% 123 118 75 97 Banchile Vida 11% 2013 2014 2015 2016 may-17 SM SAAM Banchile Vida CSAV Invexans IRSA/CCU LQIF (additional
Slide 23: Quiñenco – Strong Fundamentals
Quiñenco – Strong Fundamentals Dominant position in its markets Quiñenco’s companies are leaders in their respective markets. Proven track record in value Holding has proven track record in value creation as evidenced by sale creation of investments for approximately US$4.3 bln and gains on sale of
Slide 24: Recent Events
Quiñenco Financial Overview Recent Events Conclusions Overview 24
Slide 25: Hapag-Lloyd completes merger with UASC
Hapag-Lloyd Techpack – Quiñenco and United completes Arab Shipping Tender Company Offer (UASC) merger • July 2016: Business combination agreement signed between Hapag-Lloyd and UASC. • May 24: merger materialized, following regulatory approvals and consent from financial entities, among other requir
Slide 26: Hapag-Lloyd new ownership structure after UASC merger
Hapag-Lloyd Techpack – Quiñenco and United completes Arab Shipping Tender Company Offer (UASC) merger • New ownership structure prior to capital increase: Other minority Shareholders of UASC received new shares equivalent 14,5% CSAV 22,6% to 28% stake, of which Qatar Holding LLC received TUI 14.4%,
Slide 27: SM SAAM adds port in Costa Rica, sells Tramarsa stake
SM SAAM adds port in Costa Rica, and sells stake in Tramarsa (Peru) Puerto Caldera, Costa Rica • September 27, 2016: SAAM signed agreement to acquire control (51%) of two concessions at Puerto Caldera (subject to approval from Costa Rica’s regulatory authorities), the second largest port of Costa Ri
Slide 28: Conclusions
Quiñenco Financial Recent Events Conclusions Overview Overview 28
Slide 29: Outlook
Outlook Factors that contribute to Quiñenco’s ability to pursue and undertake new investment opportunities Strong Cash Position Healthy Portfolio Financial Optimization Structure • Good • Sound financial • Strong cash levels performance of indicators • Conservative main operating • Well structured f
Slide 30: Thank you for your attention
NENCO S.A Thank you for your attention 4 Qui
Slide 31: Appendix: Main Operating Companies
Appendix: Main Operating Companies 31
Slide 32: Banco de Chile
Banco de Chile • Established in 1893, Banco de Chile has a highly • Strategic alliance with Citigroup complements the recognized name in Chile. Bank’s financial services of excellence for its • One of the most profitable banks in terms of customers and gives access to one of the most return on asset
Slide 33: Banco de Chile
Banco de Chile • In 2016 the Bank’s net income was slightly below the ROAE previous year. Despite low inflation and lower than expected economic growth, operating revenues increased by 5.4%, boosted by both customer related and non-customer income. Loan loss provisions increased 23,5% 24,4% mostly d
Slide 34: CCU
CCU • Founded in 1850, CCU is a multi-category branded • Traded on the NYSE and Santiago Stock Exchanges. beverage company operating in Chile, Argentina, • In January 2015, CCU launched the “ExCCelencia CCU” Bolivia, Colombia, Paraguay and Uruguay with an program, with the aim to achieve efficiencie
Slide 35: CCU
CCU • Sales grew 4% in 2016 to MUS$2,348, reflecting growth in the Chile and Wine segments, compensating lower EBITDA* by Business Segment sales in the International Business segment. (YTD March 2017) • EBITDA reached MUS$428 in 2016, down a slight 0.8% Wine from 2015, mostly due to the impact of th
Slide 36: Invexans
Invexans • Invexans’ main asset is its 28.51% stake in Nexans, • Invexans now has three directors on the Board, a a leading cable manufacturer with worldwide member of the Compensations and Designations presence, based in France. Committee, a member of the Strategic • An agreement signed in Septembe
Slide 37: Nexans
Nexans • Nexans is a worldwide leader in the cable industry with presence in 40 countries and commercial activities worldwide, after over a century of progress. • Headquartered in Paris, France, Nexans produces cables and cabling systems, constantly innovating its products, solutions and services. •
Slide 38: Invexans
Invexans Operating Income • In 2016 Invexans’ net income mainly reflects its (MUS$) proportional share in Nexans’ net gain for the year, turning around the prior year’s losses, 16 reflecting the favorable impact of the strategic 2 initiatives implemented. At Invexans, results also improved with the
Slide 39: Techpack
Techpack • Until May 2016, Techpack was a regional leader in • In March 2015, Techpack acquired Alusa’s shares flexible packaging, with presence in Chile, held by third parties, reaching 100% of its Argentina, Peru and Colombia, over 2,300 property . employees, and an installed capacity of 85,000 •
Slide 40: Techpack
Techpack Sales • Techpack’s net income in 2016 was a gain of (MUS$) MUS$6, mainly reflecting the gain on the sale of the flexible packaging business, which amounted to an after tax gain of US$21 million. 351 372 • During 1Q 2017 Techpack posted a net loss of US$3 million, primarily reflecting the ne
Slide 41: Enex
Enex • Enex S.A. has a network of 470 service stations, Market Share of Liquid Fuel Sales with 131 convenience stores. (December 2016) • Main business activities: - Distribution of fuels through its service Others 8% stations. Petrobras - Distribution of fuels to industrial clients and 13% transport
Slide 42: Enex
Enex • In 2016 sales reached MUS$2,547, down 0.4%, mainly Sales due to lower fuel prices, which offset 12.2% growth in sales volumes. Gross income, however, was up 17% (MUS$) boosted by higher sales volumes through service stations and the industrial channel. 3,278 • Operating income increased 10% t
Slide 43: CSAV
CSAV • CSAV, founded in 1872, is one of the oldest shipping • At year-end 2014 CSAV raised US$398 million in a companies in the world. capital increase. • Its activities include overseas transport of • CSAV subscribed €259 million in Hapag-Lloyd’s capital containerized cargo through its investment i
Slide 44: CSAV
CSAV • In 2016 CSAV’s sales reached MUS$127, 24% below 2015, Sales mostly due to the closure of the reefer business and lower (MUS$) freight rates in the car carrier business. 3,206 • In 2016 CSAV reported a net loss of MUS$23, mostly reflecting its share in Hapag-Lloyd’s net loss of US$107 million,
Slide 45: Hapag-Lloyd
Hapag-Lloyd • Hapag-Lloyd is a leading global liner shipping company, with a fleet of 166 modern ships, 7.6 million TEU transported a year and a total capacity of around 1 million TEU. (Prior to merger with UASC) • Founded in 1847 and headquartered in Hamburg, Germany, Hapag-Lloyd offers a global ne
Slide 46: SM SAAM
SM SAAM • SM SAAM is dedicated to port services and • SM SAAM subscribed, through SAAM, an management of port concessions, including three association with the Dutch company Boskalis to main business areas: port terminals, tug boats, jointly operate and develop the tug boat business and logistics. i
Slide 47: SM SAAM
SM SAAM • In 2016, SM SAAM’s consolidated sales reached Sales MUS$394, down by 8%, mainly due to lower sales of logistics, due to lower activity in Chile, and the closure of (MUS$) certain operations in Chile and of Brazil, and also of port 479 492 terminals and tug boats. 426 • SM SAAM obtained net