Quinenco S.a. · BCS:QUINENCO
Quinenco — Investor Presentation (October 2011)
38 slides from Quinenco's investor presentation, October 2011
Slide 1: Quiñenco S.A.
QUIÑENCO S.A. 1 October 2011
Slide 2: Quiñenco Overview, Recent Events, Main Operating Companies, Financial Overview
1 Quiñenco Overview 2 Recent Events 3 Main Operating Companies 4 Financial Overview 2
Slide 3: Quiñenco
Quiñenco Quiñenco is one of Chile’s largest business conglomerates with US$42 billion in assets under management Companies managed by Quiñenco generated sales revenue of US$4.7 billion in 2010 The Quiñenco group of companies employs over 16,000 people in Chile and abroad 3
Slide 4: Ownership Structure
Ownership Structure Luksic Group Minority Shareholders (Chilean Stock Exchanges) 83% 17% Mining Industrial/ Financial Services Market Capitalization US$ 2.7(1) billion (1): Market Capitalization as of September 28, 2011. 4
Slide 5: Quiñenco: Main Operating Companies
Quiñenco: Main Operating Companies % Control as of September 2011 59.6% 66.1% 54.4% 20.6% 100% Banco de CCU Madeco CSAV Enex Chile (1):US$ 3.4 bln (1) Mkt.Cap(1):US$ 0.7 bln Mkt. Cap(1):US$ 10.6 bln Mkt.Cap V. Bursátil: MMUS$ 1,9 mil Mkt.Cap : US$ 281 mln US$ 633 mln 2nd bank in Chile N°1 Chilean
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
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:
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
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
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
Slide 11: Value Creation System
Value Creation System Quiñenco has developed a value creation system through the professional management of its investments Acquisitions Restructurings Development & maximization of profitability of business portfolio Divestments Divest Continuous growth of Shareholder value Acquisition 11
Slide 12: Corporate Level Transactions
Corporate LevelTransactions Quiñenco has carried out various transactions throughout its history, generating over US$2 billion in profits over the last 14 years from divestments of US$4.7 bln 2500 Startel 2,041 2000 VTR LD Hipercable 1500 1,099 OHCH 1000 854 * Hoteles 500 -12 -13 69 44 0 Telecom Ret
Slide 13: Leading Market Positions
Leading Market Positions The company’s investment strategy allows it to maintain a leading position in all of its business areas and product segments: Business Industry Product Ranking(1) Market Share (1) Financial Loans 2 19% Servicies Deposits 1 23% Beer Chile 1 83% Beer Argentina 2 23% Carbonated
Slide 14: Diversified Investments
Diversified Investments Quiñenco is one of the most diversified holding companies in Chile. During its history it has invested in sectors where it has a recognized track-record and experience in the industry. Investments by Sector Net Asset Value(1) (NAV) (US$ 3.8 billion as of June 30, 2011) (US$ 5
Slide 15: NAV & Share Price Trend
NAV & Share Price Trend Note: Market information and book values as of June 30, 2011 NAV: US$5.7 billion Market Cap: US$4.0 billion 15
Slide 16: Diversified Revenues and Results
Diversified Revenues and Results Quiñenco has achieved diversified revenues and results, thus generating stable cash flows Aggregate Revenues by Sector(1) Net Income (2) (YTD June 2011) (YTD June 2011, MCh$) Financial Energy Services 18% 20% 49,329 32,625 Beverage & Food 2,972 14% 223 Transport Manu
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 June 2011) 325 CSAV 6% 227 229 CCU 31% 124 102 Banco de Chile 63% 2007 2008 2009 2010 YTD Jun 11 Other CSAV Entel Telsur Madeco CC
Slide 18: Quiñenco Overview, Recent Events, Main Operating Companies
1 Quiñenco Overview 2 Recent Events 3 Main Operating Companies 4 Financial Results 18
Slide 19: Quiñenco acquires Shell's assets in Chile
Quiñenco acquires Shell’s assets in Chile 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
Slide 20: Quiñenco acquires an 18% stake in CSAV
Quiñenco acquires an 18% stake in CSAV On March 22, 2011, Quiñenco acquired a 10% stake in Compañía Sud Americana de Vapores (CSAV) from Marinsa, controlling entity of CSAV, for US$120 million (Ch$285 per share). On April 6, 2011, Quiñenco acquires an additional 8% stake in CSAV, also from Marin
Slide 21: CSAV - Capital increase and Shareholders' agreement
CSAV - New announcements: Capital increase and Shareholders’ agreement On September 2, 2011, Quiñenco announced the approval of a US$250 credit line for CSAV, to fund company’s cash needs for the remainder of 2011. Board of CSAV approved a financial strengthening plan: US$ 1.2 billion capital
Slide 22: 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 23: Quiñenco Overview, Recent Events, Main Operating Companies
1 Quiñenco Overview 2 Recent Events 3 Main Operating Companies 4 Financial Results 23
Slide 24: Banco de Chile
Banco de Chile Established in 1893, Banco de Chile has a highly recognized name in Chile 2nd largest bank in the Chilean financial system in terms of loans One of the most profitable banks in terms of return on assets and equity Assets of US$39 billion Over 14,000 employees Nationwide ne
Slide 25: Banco de Chile
Banco de Chile Financial Services (MUS$) During 2011 the Bank’s operating income has ROAE continued growing at a healthy 7.2% Net income as of June 2011 was MUS$493, 11% 27.40% 25.10% 28.20% 27.30% 24.70% above 2010 results. 17.60% ROAE = 27%, one of the highest in the Chilean financial system
Slide 26: CCU
CCU Founded in 1850, CCU is the largest brewery and beverage producer in Chile, and the second brewery in Argentina. Assets of US$2.5 billion. Over 5,400 employees. 18 facilities in Chile with more than 325,000 m2. 4 facilities in Argentina with over 80,000 m2 Extensive distribution netw
Slide 27: CCU
CCU Beverage & Food MUS$ Sales grew by 10% as of June 2011 to EBITDA by Business Segment YTD Jun 2011 MUS$926 Spirits Other Wine 3% 2% 11% Net income as of June 2011 reached Beer MUS$119, 3% above the previous period, Argentina Beer Chile 14% 49% based on improved operating results. EBITDA was
Slide 28: Madeco
Madeco Founded in 1944, Madeco is one of the leading producers in the region of flexible packaging, and a relevant actor in brass mills and profiles. Global presence through exports of a variety of copper and aluminum products to the North American and European markets with over 5,000 customers.
Slide 29: Madeco
Madeco Manufacturing MUS$ Sales as of June 2011 grew by 17% to Sales MUS$223 boosted by the flexible packaging and profiles units. 1,365 Madeco obtained a net income of MUS$13 as of June 2011 mainly due to improved performance of the flexible packaging and profiles units, 384 418 together with a
Slide 30: Nexans
Nexans Manufacturing Nexans is the worldwide leader in the cable industry with 2010 Sales by Origin presence in 40 countries and commercial activities worldwide, after over a century of progress. Headquartered in Paris, France, Nexans produces cables and cabling systems at more than 90 productio
Slide 31: Quiñenco Overview, Recent Events, Main Operating Companies
1 Quiñenco Overview 2 Recent Events 3 Main Operating Companies 4 Financial Results 31
Slide 32: Sound Results
Sound Results Revenues(1) Net Income (2) (MUS$) (MUS$) 2,788 623 2,592 2,258 538 501 1,898 1,497 1,543 332 IFRS IFRS 225 182 2007* 2008 2009 2010 Jun '10 Jun '11 2007* 2008 2009 2010 Jun '10 Jun '11 Quiñenco started reporting in accordance with IFRS in 2009 (comparative with 2008). Therefore, figu
Slide 33: Conservative Financial Structure
Conservative Financial Structure Long term investments are financed with equity and long term debt in Chilean pesos Assets Liabilities and Equity US$ 4.0 billion as of June 2011 US$ 4.0 billion as of June 2011 Other 9% Cash SH Equity 19% 82% LTDebt 15% Other Liabilities LT Assets 2% STDebt 72% 1% 33
Slide 34: Low Financial Debt
Low Financial Debt Asset disposals and strong dividend flow have allowed Quiñenco to reduce its debt significantly MUS$ 2007 2008 2009 2010 Jun 2011 Debt 778 451 356 366 807 Cash -360 -114 -221 -1,534 -755 Net Debt 417 337 135 -1,168 52 Net Debt MUS$ 417 337 135 52 -1,168 2007 2008 2009 2010 Jun-11
Slide 35: Conservative Corporate Debt Ratios
Conservative Corporate Debt Ratios Quiñenco’s healthy financial position lays the foundation for future growth Leverage still remains low Adequate interest coverage Leverage* Interest Coverage** 0.36 231 0.21 0.14 0.14 0.10 47 7 11 10 2007 2008 2009 2010 12m Jun 2007 2008 2009 2010 Jun '11 '11 *
Slide 36: 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 performance of main Sound financial indicators Strong cash levels operating companies should Well structured Ba
Slide 37: Quiñenco – Attractive Fundamentals
Quiñenco – Attractive Fundamentals Dominant position Quiñenco’s companies are leaders in their respective markets. in its markets Proven track record in Holding has proven track record in value creation by evidenced by sale of investments for approximately US$ 4.7 bln and gains on value creation
Slide 38: Thank you for your attention
QUIÑENCO S.A. Thank you for your attention 38