Quinenco S.a. · BCS:QUINENCO
Quinenco — Investor Presentation (October 2024)
45 slides from Quinenco's investor presentation, October 2024
Slide 1: Investor Presentation
Investor Presentation October 2024
Slide 2: Disclaimer
DISCLAIMER This presentation includes information on Quiñenco S.A. and related companies. Said information is summarized and does not intend to be complete, nor should it be considered as advice for potential investors. No representation or warranty, express or implied, is made as to the accuracy, o
Slide 3: Agenda
• QUIÑENCO AT A GLANCE • QUIÑENCO OVERVIEW • RECENT EVENTS • CONCLUSIONS 3
Slide 4: Quiñenco at a Glance
QUIÑENCO AT A GLANCE OWNERSHIP STRUCTURE 65% 83% 17% Minority Shareholders (Chilean Stock Exchanges) Mining Listed on London Stock Exchange Holding Industrial / Financial Services 141 75,800 US$ 113 bln Countries(1) Jobs(1) Assets under management (1) US$ 8.4 bln US$ 5.8 bln AA+/AA+ Net Asset Value
Slide 5: Diversified Portfolio of Six Main Operating Companies
QUIÑENCO: INTRODUCTION DIVERSIFIED PORTFOLIO OF SIX MAIN OPERATING COMPANIES % Control as of June 2024 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Book Value3 51.3% 65.9% 19.3% 30.0%2 62.6% 100% US$ 12.9 bln US$ 2.2 bln US$6.4bln US$31.9 bln US$1.1 bln US$1.0 bln • Leading full services bank • No.1
Slide 6: Quiñenco Overview
• QUIÑENCO AT A GLANCE • QUIÑENCO OVERVIEW • RECENT EVENTS • CONCLUSIONS 6
Slide 7: One of Chile's Largest Business Conglomerates with Strong Fundamentals
QUIÑENCO OVERVIEW 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 Dominant Market increasing International
Slide 8: First Class Board and Management
QUIÑENCO OVERVIEW FIRST CLASS BOARD AND MANAGEMENT BOARD OF DIRECTORS Pablo Granifo L. Jean-Paul Luksic F. Paola Luksic F. Andrónico Luksic L. Nicolás Luksic P. Hernán Büchi B. Juan Carlos Jobet E. Ignacio Guerrero G. Chairman Vice Chairman Director Director Director Director Director Independent Di
Slide 9: Value Creation System
QUIÑENCO OVERVIEW VALUE CREATION SYSTEM Quiñenco has developed a value creation system through the professional management of its investments, which has led to various transactions throughout its history, generating US$1.9 billion in profits over the last 26 years from divestments of US$4.6 billion
Slide 10: Strong Growth in NAV
QUIÑENCO OVERVIEW STRONG GROWTH IN NAV … and an average annual compound growth rate of 9% in the net value of Quiñenco’s assets over the past 20 years(1) 8,417 Quiñenco-NAV(2) (3) 7,873 7,366 7,788 7,781 (MUS$) 6,858 6,541 6,565 5,789 5,875 6,003 5,351 5,364 5,137 4,660 3,275 3,071 2,721 1,989 2,028
Slide 11: Favorable Performance of NAV, Share Price & Dividends
QUIÑENCO OVERVIEW FAVORABLE PERFORMANCE OF NAV, SHARE PRICE & DIVIDENDS Dividends Paid NAV(1)/Share Price Trend (MCh$) as of June 30, 2024 56% 30% 1,063,492 1,060,597 6,000 NAV: US$8.4 bln 30% 50% 30% $4,780 252,590 5,000 63,015 123,624 4,000 $3,085 2020 2021 2022 2023 YTD Sep 2024 3,000 Percentage
Slide 12: Investment Criteria
QUIÑENCO OVERVIEW INVESTMENT CRITERIA Brand & consumer Competitive franchise development advantages and potential sufficient critical mass Controlling stakes or Prior operating significant influence or industry experience Access to strategic Growth platform or partners / commercial add-on acquisitio
Slide 13: Leading Market Positions
QUIÑENCO OVERVIEW LEADING MARKET POSITIONS The company’s investment strategy allows it to maintain a leading position in all its business areas and product segments Beverage Leading beverage company in Chile Financial #2 Beer in Argentina #2 Loans in Chile #2 Deposits in Chile Energy Transport #2 Fu
Slide 14: Controlling or Influential Interest Along with World Class Strategic & Commercial Alliances
QUIÑENCO OVERVIEW CONTROLLING OR INFLUENTIAL INTEREST ALONG WITH WORLD CLASS STRATEGIC & COMMERCIAL ALLIANCES Quiñenco partners with world class players to develop its markets and products to take advantage of combined know- how, experience and financial capacity Beverage Financial Energy Transport
Slide 15: Diversified Investments
QUIÑENCO OVERVIEW DIVERSIFIED INVESTMENTS Becoming one of the most diversified holding companies in Chile . . . Investments by Sector(1) Net Asset Value(2) (NAV) (as of June 30, 2024) (as of June 30, 2024) (Percentages calculated over gross assets) Cash Port Services 16% Financial 6% Cash Services E
Slide 16: Growing and Diversified Revenues
QUIÑENCO OVERVIEW GROWING AND DIVERSIFIED REVENUES . . . achieving diversified and growing revenues . . . Consolidated Revenues(1) Aggregate Revenues by Sector(2) (MUS$) (YTD June 2024) Port Services Financial 1% Services 8,743 8,480 8% Beverage 7% 5,738 5.3% 4,784 4,491 4,265 Manufacturing 23% Tran
Slide 17: Sound Results
QUIÑENCO OVERVIEW SOUND RESULTS . . . and sound bottom line results Net Income(1) 3,744 (MUS$) 535 2,005 892 201 155 163 148 535 112 222 262 112 15 4 16 19 15 2019 2020 2021 2022 2023 YTD Jun- YTD Jun- Total Financial Port Services Energy Transport 23 24 Other(2) (89) 234 Jun-23 Jun-24 123 125 104 (
Slide 18: Quiñenco Holding Conservative Financial Structure
QUIÑENCO OVERVIEW QUIÑENCO HOLDING CONSERVATIVE FINANCIAL STRUCTURE Long term investments are financed with equity and long term debt in Chilean pesos . . . Assets Liabilities and Equity US$10.7 billion as of June 2024 US$10.7 billion as of June 2024 LT Debt ST Debt Cash 13% 0% 15% Other 1% Other Li
Slide 19: Low Financial Corporate Debt
QUIÑENCO OVERVIEW LOW FINANCIAL CORPORATE DEBT . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt (MUS$) 1,000 0.4 800 0.35 600 0.3 0.25 400 0.2 200 0.15 - 0.1 2020 2021 2022 2023 Jun-24 (200) 0.05 (400) 0 Net Debt Debt/Capitalization(1) MUS$ 2020 20
Slide 20: Diversified and Healthy Dividend Cashflow
QUIÑENCO OVERVIEW DIVERSIFIED AND HEALTHY DIVIDEND CASHFLOW . . . to the parent company based on good operating company performance Dividends Composition of Dividends (MUS$) (YTD September 2024) 1,272 NEXANS 1,172 2% 1,062 SM SAAM 14% LQIF/Banco de Chile 19% IRSA/CCU 0% 536 133 2020 2021 2022 2023 Y
Slide 21: Sustainability Policy
QUIÑENCO OVERVIEW 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 DEVELOPMENT EXCELLENCE PEOPLE COMMITMENT TO THE LEADERSHIP COUNTRY We work for progress, open to the world to c
Slide 22: Recent Events
• QUIÑENCO AT A GLANCE • QUIÑENCO OVERVIEW • RECENT EVENTS • CONCLUSIONS 22
Slide 23: Nexans Acquires Italian Company La Triveneta Cavi
RECENT EVENTS NEXANS ACQUIRES ITALIAN COMPANY LA TRIVENETA CAVI • On June 6, 2024, Nexans announced the completion of the acquisition of La Triveneta Cavi, an Italian company well-known for its excellence in the European medium- and low-voltage segments, per the agreement signed in February 2024. •
Slide 24: SM SAAM Launches Fully Electric Zero-Emission Tug Boats in Vancouver
RECENT EVENTS SM SAAM LAUNCHES FULLY ELECTRIC AND ZERO- EMISSION TUG BOTAS IN VANCOUVER, CANADA • On April 10, 2024, SAAM Towage Canada, together with strategic partners Teck Resources and Neptune terminals, launched the first two fully electric zero-emission tug boats at the port of Vancouver, whic
Slide 25: Enex Opens New Road Ranger Travel Centers in the USA
RECENT EVENTS ENEX OPENS NEW ROAD RANGER TRAVEL CENTERS EXPANDING ITS PRESENCE IN THE USA TO OVER 50 LOCATIONS • During 2023, Road Ranger, Enex’s network of highway travel centers in the USA, inaugurated four new stations (three in Texas and one in Missouri). During 2024 three additional locations h
Slide 26: CCU and Enex Reach Full Ownership of Subsidiaries in Paraguay
RECENT EVENTS CCU AND ENEX REACH FULL OWNERSHIP OF SUBSIDIARIES IN PARAGUAY, FOLLOWING EXIT OF BANCO SUDAMERIS • On February 20, 2024, CCU and Enex reached 100% ownership of their respective subsidiaries in Paraguay, upon the exercise on behalf of Banco Sudameris of its put options, as contemplated
Slide 27: Conclusions
• QUIÑENCO AT A GLANCE • QUIÑENCO OVERVIEW • RECENT EVENTS • CONCLUSIONS 27
Slide 28: Outlook
CONCLUSIONS OUTLOOK SOUND CASH POSITION • Strong cash levels • Conservative financing policy FACTORS THAT CONTRIBUTE TO QUIÑENCO’S ABILITY TO PURSUE AND UNDERTAKE NEW INVESTMENT HEALTHY FINANCIAL STRUCTURE OPPORTUNITIES • Sound financial indicators • Well structured Balance Sheet • AA+/AA+ local rat
Slide 29: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION 29
Slide 30: Appendix: Main Operating Companies
APPENDIX MAIN OPERATING COMPANIES
Slide 31: Banco de Chile Ownership Structure
MAIN OPERATING COMPANIES • Established in 1893, Banco de Chile has a highly recognized name in Chile. • One of the most profitable banks in terms of return on assets and equity. • Assets of US$64 billion. • Over 12,200 employees. • Nationwide network of 257 branches and 1,891 ATMs. • Traded on the N
Slide 32: Financial Services Results
Contribution of Financial Services Net income in 2Q 2024 declined by 2.6%, due to greater expected credit to Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES losses, partly offset by growth in operating revenues driven by customer- 163 155 income. jun-23 jun-24 Operating Revenues ROAE (MUS$) 3.
Slide 33: CCU Ownership Structure
MAIN OPERATING COMPANIES • 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 80 countries. • Assets of US$3.9 billion. • Over 10,200 employees. • 35 beverage fa
Slide 34: CCU Results
Contribution of IRSA in Other to CCU’s quarterly results improved, reversing the loss reported in 2Q 2023, Quiñenco´s Net Income (MUS$) MAIN OPERATING COMPANIES mainly due to a non-recurring gain on the sale of real estate, compensating 18 lower operating performance, mostly reflecting lower consump
Slide 35: Nexans Ownership Structure
MAIN OPERATING COMPANIES • Nexans is a worldwide leader in the cable industry with an industrial footprint in 41 countries and commercial activities worldwide, after over a century of progress. • Headquartered in Paris, France, Nexans produces cables and cabling systems, constantly innovating its pr
Slide 36: Nexans Results
Contribution of Nexans in Other to Nexans contribution increased by 55.1%, based on strong operating Quiñenco´s Net Income (MUS$) MAIN OPERATING COMPANIES performance, driven by the electrification segments. 23 35 2023 2024 Sales EBITDA by Business Segment (M€) (YTD June 2024) 5.4% Non- Electrificat
Slide 37: Enex Ownership Structure
MAIN OPERATING COMPANIES • Enex S.A. has a network of 449 service stations, with 212 convenience stores in Chile, 49 travel centers in the USA and supplies 77 service stations in Paraguay. • Main business activities: Distribution of fuels through its service stations. Distribution of fuels to in
Slide 38: Enex Results
Contribution of Energy to Enex’s contribution fell to a loss in the current quarter, mainly due to an Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES increased tax expense, in addition to slightly lower operating and non- 15 operating results. 4 Jun-23 Jun-24 Sales EBITDA (MUS$) (YTD June 2024
Slide 39: CSAV Ownership Structure
MAIN OPERATING COMPANIES • CSAV, founded in 1872, is one of the oldest shipping companies in the world. • Its activities include overseas transport of containerized cargo through its investment in Hapag-Lloyd. • Total assets as of December 2023 were US$8.3 billion. • In November 2015 Hapag-Lloyd car
Slide 40: CSAV Results
Contribution of Transport to CSAV’s 2Q 2024 results mainly reflect a lower tax expense at CSAV that Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES more than compensated a decrease in its share of Hapag-Lloyd’s results, 201 (89) in a more normalized industry context as compared to 2Q 2023. Jun
Slide 41: Hapag-Lloyd Ownership Structure
MAIN OPERATING COMPANIES • Hapag-Lloyd is a leading global liner shipping company, with a fleet of 266 modern ships, 12 million TEU transported a year and a total capacity of around 2.0 million TEU. • Founded in 1847 and headquartered in Hamburg, Germany, Hapag-Lloyd offers a global network of 110 l
Slide 42: Hapag-Lloyd Results
Hapag-Lloyd´s 2Q 2024 results decreased by 58.0% in a context of more normalized Contribution of Transport to global supply chains as compared to 2Q 2023, and therefore lower rates in container Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES shipping, translating in the case of Hapag-Lloyd to
Slide 43: SM SAAM Ownership Structure
MAIN OPERATING COMPANIES • SM SAAM is a multinational company, based in Chile, which provides services to international trade through two business areas: tug boats and air logistics. • SM SAAM has a presence in 13 countries across America, operating a fleet of 208 tug boats, being the largest tug bo
Slide 44: SM SAAM Results
SM SAAM’s results in 2Q 2024 decrease despite good operating Contribution of Port Services to Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES performance in air logistics and tug boats, due to higher deferred taxes 19 and the gain from discontinued operations in 2Q 2023 only. 16 Jun-23 Jun-24
Slide 45: Quiñenco
QUINENCO