Quinenco S.A. · BCS:QUINENCO

Quinenco — Investor Presentation (May 2012)

43 slides from Quinenco's investor presentation, May 2012

  1. Slide 1: Quiñenco S.A.

    QUIÑENCO S.A. 1 May 2012

  2. Slide 2: Agenda

    1 Quiñenco Overview 2 Recent Events 3 Financial Overview 4 Main Operating Companies 5 Conclusions 2

  3. Slide 3: Quiñenco

    Quiñenco ƒ Quiñenco is one of Chile’s largest business conglomerates with US$49 billion in assets under management ƒ Companies managed by Quiñenco generated sales revenue of US$12 billion in 2011 ƒ The Quiñenco group of companies employs around 34,500 people in Chile and abroad 3

  4. Slide 4: Ownership Structure

    Ownership Structure Luksic Group Minority Shareholders (Chilean Stock Exchanges) 81% 19% Mining Industrial/ Financial Services Market Capitalization US$ 4.2(1) billion (1): Market Capitalization as of April 30, 2012. 4

  5. 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$ 344 mln Mkt.Cap(1):US$ 1.0 bln Mkt.Cap(1):US$ 1.2 bln US$ 633 mln Mkt.Cap(1):US$ 13.5 bln Mkt.Cap(1)V. :US$ 4.6 blnMMUS$ Bursátil: 1,9 mil ƒ1st b

  6. 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 ƒ

  7. 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:

  8. 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

  9. 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

  10. Slide 10: Quiñenco: 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

  11. Slide 11: Value Creation System

    Value Creation System Quiñenco has developed a value creation system through the professional management of its investments ƒ Acquisitions ƒ Restructurings ƒ Development & maximization of profitability of business portfolio ƒ Divestments Divest Continuous growth of Shareholder value Acquisition 11

  12. Slide 12: Corporate Level Transactions

    Corporate LevelTransactions Quiñenco has carried out various transactions throughout its history, generating close to US$1.9 billion in profits over the last 15 years from divestments of US$4.4 bln 1,880 Startel VTR LD Hipercable 1,013 OHCH 786 * Hotels 64 -11 41 -12 Telecom Retail Real estate/Hotel

  13. 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

  14. 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$ 3.2 billion as of December 31, 2011) (U

  15. Slide 15: NAV & Share Price Trend

    NAV & Share Price Trend NAV/Share Price Trend as of December 31, 2011 3.000 2.367 2.436 2.330 2.500 2.314 2.009 2.000 1.500 1.745 1.701 1.649 1.000 1.250 1.187 500 0 Dec‐10 Mar‐11 Jun‐11 Sep‐11 Dec‐11 Share price (Ch$) NAV per share (Ch$) Note: Market information and book values as of December 31, 2

  16. 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

  17. Slide 17: 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 December 2011) 293 CSAV 6% 205 207 CCU 31% 111 92 Banco de Chile 63% 2007 2008 2009 2010 2011 Other CSAV Entel Telsur Madeco CCU L

  18. Slide 18: Quiñenco – Strong Fundamentals

    Quiñenco – Strong Fundamentals Dominant position ƒ Quiñenco’s companies are leaders in their respective markets. in its markets Proven track record in ƒ Holding has proven track record in value creation by evidenced by sale of investments for approximately US$ 4.4 bln and gains on value creation sal

  19. Slide 19: Recent Events

    1 Quiñenco Overview 2 Recent Events 3 Financial Results 4 Main Operating Companies 19

  20. Slide 20: Quiñenco acquires Shell's assets in Chile

    Quiñenco acquires Shell’s assets in Chile ƒ 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

  21. Slide 21: Quiñenco acquires a 37.44% stake in CSAV

    Quiñenco acquires a 37.44% stake in CSAV ƒ March 22, 2011: Quiñenco acquired 10% stake in Compañía Sud Americana de Vapores (CSAV) from Marinsa, controlling entity of CSAV, for US$120 million. ƒ April 6, 2011: Quiñenco acquires an additional 8% stake in CSAV, also from Marinsa, for US$120 million. ƒ

  22. Slide 22: SAAM Spin-off

    SAAM Spin-off ƒ As of February 15, SAAM (cargo and shipping business) was spun- off from CSAV. ƒ SM-SAAM is established as controlling entity of SAAM. ƒ CSAV shareholders as of February 29 received 1.1168666991 shares of SM-SAAM for each share of CSAV. ƒ SM-SAAM shares are traded as of March 1 on th

  23. Slide 23: CSAV – SAAM: Current Boards of Directors

    CSAV – SAAM: Current Boards of Directors ƒ CSAV’s Board of Directors is composed of 11 members ƒ Directors: Quiñenco elected 6 directors (Guillermo Luksic-Chairman, Francisco Pérez, Hernán Büchi, Gonzalo Menéndez, Juan Francisco Gutiérrez, José de Gregorio) ƒ SM-SAAM’s Board of Directors is composed

  24. Slide 24: Quiñenco signs agreement to acquire Terpel's assets in Chile

    Quiñenco signs agreement to acquire Terpel’s assets in Chile ƒ 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

  25. Slide 25: Quiñenco raises funds through debt and equity

    Quiñenco raises funds through debt and equity Bond Issuance ƒ 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 ƒ I

  26. Slide 26: Financial Results

    1 Quiñenco Overview 2 Recent Events 3 Financial Results 4 Main Operating Companies 26

  27. Slide 27: Sound Results

    Sound Results Revenues(1) Net Income (2) (MUS$) (MUS$) 4,154 562 485 2,337 2,431 2,036 299 IFRS IFRS 1,350 203 169 2007* 2008 2009 2010 2011 2007* 2008 2009 2010 2011 ƒ Quiñenco started reporting in accordance with IFRS in 2009 (comparative with 2008). Therefore, figures for 2007 were prepared under

  28. 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$ 3.6 billion as of December 2011 US$ 3.6 billion as of December 2011 Other 8% LT Debt Cash 14% 13% Other Liabilities 2% ST Debt 1% LT

  29. Slide 29: Low Financial Corporate Debt

    Low Financial Corporate Debt Asset disposals and strong dividend flow have allowed Quiñenco to reduce its debt significantly MUS$ 2007 2008 2009 2010 2011 Debt 701 407 321 330 733 Cash -325 -103 -199 -1.382 -309 Net Debt 376 304 122 -1.053 425(1) Net Debt MUS$ 376 304 425 (1) 122 -1.053 2007 2008 20

  30. Slide 30: Main Operating Companies

    1 Quiñenco Overview 2 Recent Events 3 Financial Results 4 Main Operating Companies 5 Conclusions 30

  31. Slide 31: Banco de Chile

    Banco de Chile ƒ Established in 1893, Banco de Chile has a highly recognized name in Chile ƒ 1st largest bank in the Chilean financial system in terms of loans ƒ One of the most profitable banks in terms of return on assets and equity ƒ Assets of US$42 billion ƒ Over 14,000 employees ƒ Nationwide ne

  32. Slide 32: Banco de Chile

    Banco de Chile Financial Services (MUS$) ƒ During 2011 the Bank’s operating income grew ROAE 4.7% 30,0% ƒ Net income in 2011 was MUS$826, 13.3% above 26,6% 27,0% 24,7% 22,7% 2010 results. ƒ ROAE = 24.7%, one of the highest in the Chilean financial system. 2007 2008 2009 2010 2011 Operating Income Ne

  33. Slide 33: CCU

    CCU ƒ Founded in 1850, CCU is the largest brewery and beverage producer in Chile, and the second brewery in Argentina. ƒ Assets of US$2.5 billion. ƒ Over 5,700 employees. ƒ 18 facilities in Chile with more than 325,000 m2. ƒ 4 facilities in Argentina with over 80,000 m2 ƒ Extensive distribution netw

  34. Slide 34: CCU

    CCU Beverage & Food MUS$ ƒ Sales grew by 15.7% in 2011 to MUS$1,867 EBITDA by Business Segment Dec 2011 ƒ Net income in 2011 reached MUS$236, 10.9% Spirits Other 6% Wine 3% above the previous period, based on improved 10% operating results. Beer Beer Chile Argentina 48% ƒ EBITDA was MUS$459 increasi

  35. Slide 35: Madeco

    Madeco ƒ 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. ƒ Global presence through exports of a variety of copper and aluminum products to the North American and European markets with over 5,000 customers.

  36. Slide 36: Madeco

    Madeco Manufacturing MUS$ ƒ Sales in 2011 grew by 4.6% to MUS$437 Sales boosted by the flexible packaging and profiles units. 1.231 ƒ Madeco obtained a net income of MUS$19 in 2011 mainly due to improved performance of the brass mills and profiles units, together with a 384 418 437 316 non-recurring

  37. Slide 37: Nexans

    Nexans Manufacturing ƒ 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. ƒ Headquartered in Paris, France, Nexans produces cables and cabling systems at more than 90 productio

  38. Slide 38: Enex

    Enex Market Share of Liquid Fuel Sales (December 2011) ƒ Enex S.A. has a network of 292 service stations, with 64 convenience stores Otros Petrobras 5% ƒ Main business activities: 12% - Distribution of fuels through its service stations - Distribution of fuels to industrial clients and transport sec

  39. Slide 39: CSAV

    CSAV ƒ CSAV, founded in 1872, is one of the oldest shipping companies in the world. ƒ Its activities include overseas transport of containerized cargo, liquid and solid bulk, refrigerated cargo, and vehicles. ƒ Has operations in Brazil, Uruguay and China. ƒ In 2011 the Company transported a total of

  40. Slide 40: SAAM

    SAAM ƒ SAAM is dedicated to port services and management of port concessions, including three main business areas: port terminals, tug boats, and logistics. ƒ SAAM has presence in 11 countries and 58 ports in America. ƒ SAAM currently has 10 port terminals and 125 tug boats, being the 2nd largest po

  41. Slide 41: Conclusions

    1 Quiñenco Overview 2 Recent Events 3 Financial Overview 4 Main Operating Companies 5 Conclusions 41

  42. Slide 42: 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 ƒ Good performance of main ƒ Sound financial indicators ƒ Strong cash levels operating companies should ƒ Well structured Ba

  43. Slide 43: Quiñenco S.A.

    QUIÑENCO S.A. Thank you for your attention 43

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