Quinenco S.A. · BCS:QUINENCO
Quinenco — Investor Presentation (November 2012)
46 slides from Quinenco's investor presentation, November 2012
Slide 1: Company Presentation / November 2012
Company Presentation / November 2012 1
Slide 2: Quiñenco Overview
Recent Events Financial Main Operating Conclusions Quiñenco Overview Overview Companies 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$12 billion in 2011 • The Quiñenco group of companies employs around 34,500 people in Chile and abroad 3
Slide 4: Ownership Structure
Ownership Structure Minority Shareholders (Chilean Stock Exchanges) 81% 19% Mining Industrial / Financial Services Market Capitalization US$ 3.8(1) billion (1) Market Capitalization as of October 31, 2012 4
Slide 5: Quiñenco: Main Operating Companies
Quiñenco: Main Operating Companies % Control as of June 2012 59.3% 66.1% 55.4% 37.4% 37.4% 100% Mkt.Cap(1): Mkt.Cap(1): Mkt.Cap(1): Mkt.Cap(1): Mkt.Cap(1): US$ 633 mln US$ 13.2 bln US$ 4.6 bln US$ 268 mln US$ 0.8 bln US$ 1.1 bln • 1st bank in Chile • No.1 Chilean • Manufacturer of • Largest shipping
Slide 6: First Class Board and Management
First Class Board and Management Board of Directors Guillermo Luksic Craig Andrónico Luksic Craig Jean‐Paul Luksic Fontbona Fernando Cañas Berkowitz Gonzalo Menéndez Duque Hernán Büchi Buc Matko Koljatic Maroevic Chairman Vice Chairman Director 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 100% 2008 Banco de Chile and Citibank Chile created. of mobile phone company, Startel, to merge on January 1st. CTC. Historical transaction between Madeco and Fren
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: Quiñenco – Investment Criteria
Quiñenco – 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: Quiñenco: World Class Strategic & Commercial Alliances
Quiñenco: World Class Strategic & Commercial Alliances Beverage & Food Manufacturing Energy Financial 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 Divest Continuous growth of Shareholder value Acquisition • Acquisitions • Restructurings • Development & maximization of profitability of business portfolio • Divestments 11
Slide 12: Corporate Level Transactions
Corporate Level Transactions 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$4.5 bln 1,953 1,051 817 * 66 43 Telecom Retail Real estate/Hotels Beverage & Food Utility Financial Services Total ‐12
Slide 13: Leading Market Positions
Leading Market Positions The company’s investment strategy allows it to maintain a leading position in all of its business areas and product segments: Business Industry Product Ranking(1) Market Share (1) Loans 1 19% Financial Services Deposits 1 23% Beer Chile 1 80% Beer Argentina 2 23% Carbonated
Slide 14: Diversified Investments
Diversified Investments Quiñenco is one of the most diversified holding companies in Chile. During its history it has invested in sectors where it has a recognized track‐record and experience in the industry. Investments by Sector Net Asset Value(1) (NAV) (US$ 4.3 billion as of June 30, 2012) (US$ 6
Slide 15: NAV & Share Price Trend
NAV & Share Price Trend NAV/Share Price Trend as of June 30, 2012 3.000 2,510 2,314 2,330 2.500 2,239 2,009 2.000 1.500 1,649 1,538 1.000 1,250 1,379 1,187 500 0 Jun‐ 11 Sep‐ 11 Dic‐ 11 Mar‐ 12 Jun‐ 12 NAV per share (CH$) Share price (CH$) Note: Market information and book values as of June 30, 2012
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$) 185.3 169.5 Financial Services 20% Transport 43% Beverage & Food 9.0 5.8 15% Manufa
Slide 17: Diversified Revenues and Results (1H 2012)
Diversified Revenues and Results (1H 2012) Quiñenco has achieved diversified revenues and results, thus generating stable cash flows Aggregate Revenues by Sector (1) Net Income (2) (YTD June 2012) (YTD June 2012, MUS$) Port & Shipping Serv. 4% Financial Services 23% 106.3 Transport 30% 59.0 24.6 Bev
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 Madeco (Millions of US$) (YTD 2% March 2012) CCU 21% 304 212 214 156 95 Banco de Chile 54% Banchile 2008 2009 2010 2011 YTD Jun 2012 23% Other Banchile S
Slide 19: Quiñenco – Strong Fundamentals
Quiñenco – Strong Fundamentals Dominant position Quiñenco’s companies are leaders in their respective markets. in its markets Proven track record in value Holding has proven track record in value creation by evidenced by sale of investments creation for approximately US$ 4.5 bln and gains on sale of
Slide 20: Recent Events
Quiñenco Recent Events Financial Main Operating Conclusions Overview Overview Companies 20
Slide 21: Quiñenco reaches a 37.44% stake in CSAV
Quiñenco reaches 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 22: SAAM Spin-off
SAAM Spin‐off • As of February 15, SAAM (cargo and shipping business) spin‐off from CSAV is carried out. • 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 Mar
Slide 23: 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 of 11
Slide 24: 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 25: 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 UF7,000,000 (US$330 million) placed during 2011, also in the local market. Capital Increase • In
Slide 26: Financial Overview
Quiñenco Recent Events Financial Overview Main Operating Conclusions Overview Companies 26
Slide 27: Sound Results
Sound Results Good operating company performance allows a strong dividend flow to the parent company Revenues(1) Net Income(2) (MUS$) (MUS$) 4,298 581 502 2,742 2,418 2,515 2,107 310 1,645 175 170 59 2008 2009 2010 2011 YTD Jun YTD Jun 2008 2009 2010 2011 YTD Jun YTD Jun 2011 2012 2011 2012 Quiñenco
Slide 28: Quiñenco Holding: Conservative Financial Structure
Quiñenco Holding: Conservative Financial Structure Long term investments are financed with equity and long term debt in Chilean pesos Assets Liabilities and Equity US$ 4.3 billion as of June 2012 US$ 4.3 billion as of June 2012 Other ST Debt Cash 1% 1% 15% Other Liabilities 1% LT Debt 14% SH Equity
Slide 29: Low Financial Corporate Debt
Low Financial Corporate Debt Asset disposals and strong dividend flow have allowed Quiñenco to maintain low levels of debt Net Debt MUS$ 439 314 126 124 ‐1.089 2008 2009 2010 2011 Jun‐12 June MUS$ 2008 2009 2010 2011 2012 Debt 421 332 341 759(1) 799 Cash ‐107 ‐206 ‐1,430 ‐319 ‐675 Net Debt 314 126 ‐
Slide 30: Main Operating Companies
Quiñenco Recent Events Financial Main Operating Companies Conclusions Overview Overview 30
Slide 31: Banco de Chile
Banco de Chile • Established in 1893, Banco de Chile has a highly • Nationwide network of 441 branches and 1,987 recognized name in Chile ATMs • 1st largest bank in the Chilean financial system in • Traded on the NYSE, LSE, Latibex and Santiago terms of loans Stock Exchanges • One of the most profit
Slide 32: Banco de Chile
Banco de Chile ROAE • During 1H 2012 the Bank’s operating revenues grew 5.3%, based on higher loans to customers and a higher balance of demand deposits and current accounts. 26.6% 27.0% 27.3% 24.7% 22.7% 23.0% • Net income in 1H 2012 was MUS$454.6, 1.2% below 2011 results. • ROAE = 23.0%, the highe
Slide 33: CCU
CCU • Founded in 1850, CCU is the largest brewery and • Jointly controlled with Heineken, 2nd largest beverage producer in Chile, and the second brewery worldwide. brewery in Argentina. • Affiliate Foods participates in sweet snack • Assets of US$2.5 billion. business • Over 5,700 employees. • Enter
Slide 34: CCU
CCU EBITDA by Business Segment June 2012 • Sales grew by 15.2% in 1H 2012 to MUS$995 • Net income in 1H 2012 reached MUS$103, Spirits Other 7% 7.5% below the previous period, mainly due to 4% Wine a non‐recurring gain reported in 2011. 7% Beer Chile • EBITDA was MUS$204 decreasing by 6.6% from Beer
Slide 35: Madeco
Madeco • Founded in 1944, Madeco is one of the leading • Approx. 2,300 employees producers in the region of flexible packaging, and • Annual sales volumes of 60,000 tons. a relevant actor in brass mills and profiles. • Historic agreement with French cable producer • Global presence through exports o
Slide 36: Madeco
Madeco Sales • Sales in 1H 2012 decreased by 5.7% to (MUS$) MUS$210 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$46 in 384 418 437 316 1H 2012 mainly reflecting negative goodwill 22
Slide 37: Nexans
Nexans • Nexans is the 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 at more than 90 production sites across 5 continents. • 2011
Slide 38: Enex
Enex • Enex S.A. has a network of 292 service stations, Market Share of Liquid Fuel Sales with 64 convenience stores (December 2011) • Main business activities: Others ‐ Distribution of fuels through its service Petrobras 5% stations 12% ‐ Distribution of fuels to industrial clients and transport se
Slide 39: Enex
Enex Sales • Sales in 1H 2012 reached MUS$1,296, mainly (MUS$) corresponding to fuels, followed by lubricants, asphalts, chemical products, and services. Sales 1.296 in 2011 include only one month’s results, after acquisition at the end of May. • Net income for 1H 2012 amounted to MUS$11, reflecting
Slide 40: CSAV
CSAV • CSAV, founded in 1872, is one of the oldest • Total assets as of December 2011 of US$ 3.2 shipping companies in the world. billon. • Its activities include overseas transport of • In May 2011 the company started a major containerized cargo, liquid and solid bulk, restructuring process with th
Slide 41: CSAV
CSAV Sales • During 1H 2012 CSAV’s sales reached (MUS$) MUS$1,765, 32.5% below 2011, as a result of the restructuring plan implemented in 2Q 2011 4,887 5,215 5,152 • Net income in 1H 2012 was a loss of MUS$345, 3,034 improving 34.3% with respect to last year. 2,616 1,765 • This result includes the n
Slide 42: SAAM
SAAM • SAAM is dedicated to port services and • In 2011 the Company’s sales reached US$426 management of port concessions, including three million, 18% higher than 2010. In 1H 2012, sales main business areas: port terminals, tug boats, reached US$220 million, up 6% from the previous and logistics. p
Slide 43: SAAM
SAAM Sales • Sales in 1H 2012 increased by 5.8% to (MUS$) MUS$220 mainly due to improved 426 performance of all business segments. 361 • SAAM obtained a net income of MUS$31 in 1H 278 2012 mainly reflecting improved operational 220 208 results, compensated by a lower non‐ operational result. 2009 20
Slide 44: Conclusions
Quiñenco Recent Events Financial Main Operating Conclusions Overview Overview Companies 44
Slide 45: 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 • Sound financial • Strong cash levels performance of indicators • Current debt main operating • Well structured leve
Slide 46: Thank you for your attention
Gees wooo wooo mw meh Thank you for your attention = |. 448 QUINENCO S.A. 46