Salfacorp S.A. · BCS:SALFACORP
Salfacorp — Investor Presentation (September 2011)
49 slides from Salfacorp's investor presentation, September 2011
Slide 1: Corporate Presentation September 2011
CORPORATE PRESENTATION SEPTEMBER, 2011 DEPUTY CFO SALFACORP S.A.
Slide 2: Corporate Presentation
CORPORATE PRESENTATION September, 2011 Citi y el diseño del arco es una marca de servicio registrada de Citigroup Inc. Uso bajo licencia.
Slide 3: Contents
CONTENTS 1: COMPANY OVERVIEW 2: ECONOMY AND INDUSTRY OUTLOOK 3: BUSINESS UNITS 4: FINANCIAL PERFORMANCE 5: MAIN HIGHLIGHTS AND OUTLOOK eEVEV
Slide 4: Company Overview
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Slide 5: SalfaCorp: A Consolidated Company
SalfaCorp: A Consolidated Company Business Model More than 82 years of history and leadership, Chile's leading company in Engineering & Construction and Real Estate Development, One of the most important throughout Latin America, Strong brand recognition and reputation, 76,2% of Salfa Ingeniería y A
Slide 6: Growth through Mergers and Acquisitions
Growth through Mergers and Acquisitions 100% More than 82 years of history, GEOVITA Significant organic growth and through acquisitions and mergers in complementary businesses, International expansion: Perú & Colombia, Effective growth management. CONST. TECSA 80% 40% ICEM 100% FE GRANDE 6
Slide 7: Diversified shareholder base
Diversified shareholder base CONTROLLING FREE GROUP FLOAT Chilean families related to the construction industry with breadth of experience and knowledge of the sector 41% 59% Ownership Structure (dec-04) Ownership Structure (jun-11) Others Controlling Investment 10.7% Others, Mutual Group, Funds 6.2
Slide 8: The largest company in the construction industry in Chile
The largest company in the construction industry in Chile… Revenues of companies in the construction industry in Chile (2010) US$ million SalfaCorp is the largest 1,600(*) Engineering & Construction player in the construction 86 Real Estate Development sector … 318 551 …and one of the leading 1,514(
Slide 9: One of the most important in Latin America
…and one of the most important in Latin America Revenue 2010 – Main Latin American Companies (*) US$ million Salfacorp begins to consolidate 2,833 as one of the most relevant actors at regional level 1,596 1,552 1,514 1,212 921 597 ICA Homex Casas Geo Salfacorp Urbi Graña y Consorcio Ara Montero Its
Slide 10: An active player in the local capital market
An active player in the local capital market… SalfaCorp S.A. vs IPSA index Active player in the local capital market: Base 100 The share price has raised 450.5% since its IPO (october 800 2004) to september 2011 vs a 135.9% increase in the IPSA 700 SalfaCorp index over the same period, 600 IPSA 500
Slide 11: Economy and Industry Outlook
ECONOMY AND INDUSTRY OUTLOOK
Slide 12: Economic outlook of SalfaCorp markets
Economic outlook of SalfaCorp markets Chile, Peru, Colombia, Uruguay and Panamá GDP US$ million (2010) PANAMA 285,511 Ch.% GDP 2011e: 7.4% Chile + Perú + Colombia + Panamá + COLOMBIA 2012e: 7.2% 203,323 Uruguay GDP > US$708,000 million Ch.% GDP 2011e: 4.6% 152,830 2012e: 4.5% 40,272 26,778 PERÚ Ch.%
Slide 13: SalfaCorp is present at less risky countries in Latam
SalfaCorp is present at less risky countries when compared to Latam region Credit rating of Latin American countries, june 2011 A+ BBB BBB BBB BBB- BBB- BB+ B+ B+ B B- Chile Brasil Mexico Panama Colombia Peru Uruguay Bolivia Venezuela Argentina Ecuador Source: Fitch Ratings, based on credit rating o
Slide 14: Chile: Investment in Construction expected to rise 9.5% in 2011
Chile: Investment in Construction is expected to rise 9.5% in 2011.. Investment in Construction (housing & infrastructure) Investment in construction is expected to rise 9.5% UF million & Ch.% in 2011e, driven by the infrastructure segment, housing Record level of investment projects to be developed
Slide 15: Chile: Housing market recovery
Chile: Housing market recovery… Housing Supply vs Months of Supply of Homes at Jun-11 Housing Sales vs Months of Supply of Homes at Jun-11 units units houses + apartments houses + apartments 100,000 35 7,000 months of supply of homes 35 months of supply of homes average 30 6,000 average 30 80,000 25
Slide 16: Perú & Colombia: Opportunities for Growth and Consolidation
Perú & Colombia: Opportunities for Growth and Consolidation Colombia: Construction Spending Perú: Construction Spending US$ million US$ million CAGR 16.3% CAGR 41.0% 13,588 6,835 9,569 3,996 4,883 5,404 2010e 2011e 2012e 2009 2010e 2011e Source: BanColombia, Banco de la República, JPMorgan. Source:
Slide 17: Business Units
BUSINESS UNITS
Slide 18: Successful business model structured for growth
Successful business model structured for growth… Structured to grow in an orderly and planned SALFA INGENIERÍA Y ACONCAGUA S.A. Specialties replicable in other CONSTRUCCIÓN S.A. countries Diversified and independent units COLOMBIA & REAL ESTATE CHILE PERÚ URUGUAY PANAMÁ DEVELOPMENT BUILDING CARIBE I
Slide 19: Attractive prospects for revenue growth
Attractive prospects for revenue growth… SalfaCorp’s Revenues (2006-2010 and target for 2013) US$ million Aconcagua 21% A history of sustained growth CAGR US$ 2010-13 Salfa Ingeniería 20% ... 2010 y Construcción …and attractive earnings CAGR US$ 2006-10 79% prospects.. 32% Aconcagua 23% 1,514 2,600
Slide 20: Salfa Ingeniería y Construcción S.A.
3.1 Salfa Ingeniería y Construcción S.A.
Slide 21: More than US$ 1,000 million of backlog to be executed
More than US$ 1,000 million of backlog to be executed in next years.. Wide portfolio of projects (low risk): Backlog of Engineering & Construction US$ million 192 projects Assured future sales: Backlog: US$ 1,059.7 million (jun-11) 50.7% to be executed in 2011 / 49.3% in 2012 and 2013 1,059.7 304.0
Slide 22: Diversified between business segments and economic sectors
..And well diversified between business segments and economic sectors Income respond to factors unrelated to each Backlog by country other: Total: US$ 1,059.7 million Industrial Assembly: Long-term structural factors, Civil Works: GDP, public infrastructure, etc. Perú 5.6% Chile Building: GDP, emplo
Slide 23: Drivers of growth: new markets and specialties
Mantención Industrial, Túneles y Puertos Drivers of growth: new markets and specialties… Strategic Plan: Entry into new specialties…
Slide 24: More than US$ 9,400 million in tenders submitted
More than US$ 9,400 million in tenders submitted and under study More than US$ 9,400 million in tenders submitted Tenders S&E by Country and under study: Total: US$ 9,417 million mining and energy represent the main areas of potential future projects, Chile new specialties (tunnels, ports, ground mo
Slide 25: Growth strategy via acquisitions
Estrategia de crecimiento vía adquisiciones… Acquisition of 100% Through TECSA, Through TECSA, Acquisition of 80% Through Consalfa, ownership of acquisition of 100% acquisition of 100% ownership of ICEM, acquisition of a 40% Construcciones ownership of Geovita, ownership of Fe ownership of IMI, High
Slide 26: Efficient management of acquisitions
Efficient management of acquisitions… Business Model prior to acquisitions… SALFA INGENIERÍA Y CONSTRUCCIÓN S.A. INDUSTRIAL MINING CIVIL WORKS INFRASTRUCTURE PORTS REVESOL ASSEMBLY DEVELOPMENT Business Model post acquisitions… SALFA INGENIERÍA Y CONSTRUCCIÓN S.A. The business model can efficiently i
Slide 27: Aconcagua S.A.
3.2 Aconcagua S.A.
Slide 28: One of the most diversified homebuilders in the local market
One of the most diversified homebuilders in the local market… NORTHERN – II REGION - IV REGION Plaza Norte, Antofagasta San Marcos, Antofagasta Laguna del Mar, La Serena CENTRAL – V REGION – METROPOLITAN REGION Geomar II, Con Cón Laguna del Sol, Padre Hurtado El Refugio, Colina SOUTHERN- VIII REGION
Slide 29: One of the most diversified homebuilders in the local market
One of the most diversified homebuilders in the local market… Diversification of projects by region, product and target segment: 64 projects under development in 26 cities and counties around the country, Mix of houses and apartments, Prices from US$ 36,000 to US$ 800,000 targeting high, middle and
Slide 30: Market recovery, strategy and product innovation explain growth
Market recovery, business strategy and product innovation explains growth.. Pre-Sales units and UF million Pre-Sales (6m-10 vs 6m-11): 6,000 14 7,000 4,914 2,106 units (+30.5% ‘10 vs ‘11) 4,283 12 6,000 3,786 3,542 UF 5.25 million (+47.6% ‘10 vs ‘11) 3,303 10 5,000 2,343 8 4,000 6 3,000 4 2,000 10.7
Slide 31: Growth drivers of the real estate business unit
Growth drivers of the real estate business unit… Value added real estate development projects: Development of important projects with crystal lagoons (Aconcagua - Crystal Lagoons Joint Venture) Seismic technologies and energy efficiency New markets (target segment and new geographical areas) Non-res
Slide 32: More than US$ 230 million of backlog to be executed
More than US$ 230 million of backlog to be executed in next years Wide portfolio of projects (low risk): Assured future sales: 84 projects (own and third parties) Backlog: US$ 234.1 million (jun-11) 69.8% to be executed in 2011 / 30.2% in 2012 and 2013 Backlog by Economic Sector Backlog of Residenti
Slide 33: Investment plan for 2011 supports growth
Investment plan for 2011 supports growth of both business units… MACHINERY AND • Investment in machiney & equipment for replacement EQUIPMENT and new specialties ADQUISITIONS •Investment in acqusitions and/or partnerships of/with AND/OR companies according to the business plan TOTAL PARTNERSHIPS INV
Slide 34: Financial Performance
FINANCIAL PERFORMANCE
Slide 35: Revenues growth
Income and margins growth as a result of increased activity in the industry and company strategy… Revenues Revenues breakdown by Business Unit Ch$ million Total: Ch$ 374,101 million CAGR 06-10: Salfa Ingeniería y 28.2% Construcción S.A. 77.5% Ch. ’11 vs ‘10: 23.9% Aconcagua S.A. 22.5% 780,444 261,84
Slide 36: Var. Revenues (2Q-10 vs 2Q-11)
Ch$ million Var. Revenues (2Q-10 vs 2Q-11) 1Q-2006 54,861 2Q-2006 63,870 3Q-2006 63,458 4Q-2006 79,654 1Q-2007 61,772 ChGAAP 2Q-2007 86,368 3Q-2007 78,609 4Q-2007 152,890 1Q-2008 98,214 2Q-2008 143,422 3Q-2008 171,002 4Q-2008 194,795 1Q-2009 126,613 2Q-2009 126,079 3Q-2009 149,941 4Q-2009 166,426 1Q
Slide 37: Gross profit and margins
Income and margins growth as a result of increased activity in the industry and company strategy… Gross Profit & % gross profit / revenues Gross Profit breakdown by Business Unit Ch$ million Total: Ch$ 42,656 million 100,000 20.0% 90,000 CAGR 06-10: 80,000 16.3% 28.3% 16.0% Ch. ’11 vs ‘10: Salfa Ing
Slide 38: Var. Gross Profit (2Q-10 vs 2Q-11)
Var. Gross Profit (2Q-10 vs 2Q-11) +53.3% Ch$ million 35,000 25.0% 30,000 Gross Profit ($ million) 21.3% 20.0% % gross profit / revenues 25,000 15.0% 20,000 14.1% 14.4% 13.6% 12.8% 13.0% 12.7% 12.3% 12.2%12.4% 12.0% 11.5%11.1% 11.9% 11.6%11.4%12.0% 11.7% 15,000 10.9% 11.0% 9.5% 10.0% 8.6% 10,000 5.0
Slide 39: EBITDA and margins
Income and margins growth as a result of increased activity in the industry and company strategy… EBITDA & % EBITDA / revenues EBITDA breakdown by Business Unit Ch$ million (*) Total: Ch$ 19,766 million 60,000 12.0% CAGR 06-10: 50,000 9.7% 27.1% 10.0% Salfa Ingeniería y 40,000 7.9% 8.0% Construcción
Slide 40: EBITDA (2Q-10 vs 2Q-11)
5,000 10,000 15,000 20,000 25,000 0 1Q-2006 3,818 2Q-2006 3,855 7.0% Ch$ million 3Q-2006 3,786 4Q-2006 5,824 6.0% 6.0% EBITDA ($ million) 7.3% 1Q-2007 4,384 ChGAAP 2Q-2007 6,061 3Q-2007 5,726 Ch. EBITDA (2Q-10 vs 2Q-11) 4Q-2007 20,733 7.1% 7.0% 7.3% 13.6% % EBITDA / revenues 1Q-2008 7,186 2Q-2008 7,
Slide 41: Profit of the period and margins
Income and margins growth as a result of increased activity in the industry and company strategy… Profit (loss) of the period & % profit (loss) / revenues Profit (loss) of the period breakdown by Business Unit Ch$ million Total: Ch$ 7,195 million 30,000 6.0% 5.7% CAGR 06-10: 25,000 Salfa Ingeniería
Slide 42: Var. Profit (loss) for the period (2Q-10 vs 2Q-11)
Var. Profit (loss) for the period (2Q-10 vs 2Q-11) +37.6% Ch$ million 15,000 8.0% Profit (loss) for the Period ($ million)7.1% % profit (loss) for the period / revenues 6.0% 10,000 4.9% 4.9% 5.0% 4.7% 4.6% 4.8% 4.0% 4.0% 4.0% 3.7% 3.1% 3.2% 3.1% 2.8% 2.4% 2.5% 2.1% 2.0% 5,000 1.8% 1.8% 1.8% 1.5% 10,
Slide 43: Strong financial position and capital structure support growth
Strong financial position and capital structure support growth… Current Ratio Leverage Current Assets / Current Liabilities Total Liabilities / Total Equity 1.76 1.40 1.37 1.98 2.53 2.19 1.42 1.39 1.59 1.95 1.74 1.84 2006 2007 2008 2009 2010 Jun/11 2006 2007 2008 2009 2010 Jun/11 Financial Leverage
Slide 44: Focusing our goals in business profitability
Focusing our goals in business profitability… Net Financial Expenses Coverage Net Debt / EBITDA EBITDA LTM / Net Financial Expenses LTM DebT – Cash&Equiv. / EBITDA LTM Target < 5.0x Covenant: > 3.0x 5.92 6.68 3.46 3.67 5.19 4.98 2.63 4.04 5.77 6.40 4.48 5.34 2006 2007 2008 2009 2010 LTM 2006 2007 20
Slide 45: Debt profile with longer maturity after restructuring
Debt profile with a longer maturity after financial reestructuring Debt (Jun-11) Debt Ch$ million L-T Bank Loans 17.1% L-T Debt / 80.2% S-T Bank Total Debt 33.5% Loans Bonds 42.8% Leasing 6.3% Total 100.0% Profile of Debt Repayment Total: Ch$ 304,718 million L-T Debt 244.285 273.333 S-T Debt 31.385
Slide 46: 2011 Financial Plan Goal
2011 Financial Plan Goal: To Support the Growth Plan for the Coming Years 2011 Focus on Asset Optimization Plan and Financing of the Investment Plan Basis of Financial Plan for 2011 Activities ASSET OPTIMIZATION PLAN Turnover Management: Inventory, Accounts Receivable and Accounts Payable through: S
Slide 47: Main Highlights and Outlook for Next Years
MAIN HIGHLIGHTS AND OUTLOOK FOR NEXT YEARS
Slide 48: Outlook: Being a leader in the construction industry
Outlook: Being a leader in the construction industry … NEXT 3 YEARS BE LEADERS IN THE CONSTRUCTION INDUSTRY IN THE SOUTH PACIFIC MARKET REVENUES TARGET OF US $ 2,600 MILLION ….. NEXT 10 YEARS BE LEADERS IN THE CONSTRUCTION INDUSTRY IN THE LATIN AMERICAN MARKET
Slide 49: Corporate Presentation
CORPORATE PRESENTATION September, 2011 Citi y el diseño del arco es una marca de servicio registrada de Citigroup Inc. Uso bajo licencia.