Quinenco S.a. · BCS:QUINENCO
Quinenco — Investor Presentation (March 2019)
49 slides from Quinenco's investor presentation, March 2019
Slide 1: Investor Presentation March 2019
Investor Presentation March 2019
Slide 2: Agenda
QUINENCO AT A GLANCE QUINENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 3: Ownership Structure
QUIÑENCO AT A GLANCE OWNERSHIP STRUCTURE 17% Luksic Group Minority Shareholders 83% (Chilean Stock Exchanges) 65% Industrial / Financial Services Mining Market Listed on London Stock Exchange Capitalization US$ 4.7 (1) billion (1) Market Capitalization as of March 14, 2019. 3
Slide 4: Quiñenco: Key Figures
QUIÑENCO AT A GLANCE QUIÑENCO: KEY FIGURES Diversified business conglomerate with increasing presence worldwide AGGREGATE ANNUAL ASSETS UNDER MANAGEMENT US$84 US$28 REVENUES OF MAIN bln bln OPERATING COMPANIES 125 69k 110 380 70 COUNTRIES JOBS PLANTS VESSELS PORTS Quiñenco, through its main Quiñenco
Slide 5: Quiñenco: Main Operating Companies
QUIÑENCO AT A GLANCE QUIÑENCO: MAIN OPERATING COMPANIES % Control as of September 2018 51.3% 60.0% 29.1%2 25.9%3 52.2% 100% Mkt.Cap1: Mkt.Cap1: Mkt.Cap1: Mkt.Cap1: Mkt.Cap1: US$ 880 mln4 US$ 15.5 bln US$ 5.3 bln US$ 1.4 bln US$4.8 bln US$ 980 mln • Leading full services • No.1 Chilean beer • Global
Slide 6: Agenda
QUINENCO AT A GLANCE QUINENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 7: One of Chile's Largest Business Conglomerates with Strong Fundamentals
QUIÑENCO OVERVIEW QUIÑENCO: 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 increasing International Domina
Slide 8: Prestigious Shareholders, Board and Management
QUIÑENCO OVERVIEW Prestigious Controlling Shareholders LOCALLY AND INTERNATIONALLY WELL-KNOWN AND PRESTIGIOUS SHAREHOLDERS First Class Board and Management BOARD OF DIRECTORS SENIOR MANAGEMENT Francisco Pérez Mackenna Chief Executive Officer Rodrigo Hinzpeter Kirberg Chief Counsel Carolina García de
Slide 9: Over 50 Years of History and Experience
QUIÑENCO OVERVIEW Proven Track Record in Value Creation OVER 50 YEARS OF HISTORY AND EXPERIENCE 1957 • 2011 2015 Sociedad Forestal Quiñenco S.A. is created. • Quiñenco acquires a 20.6% stake in shipping • Quiñenco launches Tender Offer for 19.55% of company CSAV. Invexans, increasing its stake to 98
Slide 10: Value Creation System
QUIÑENCO OVERVIEW Proven Track Record in Value Creation VALUE CREATION SYSTEM Quiñenco has developed a value creation system through the professional management of its investments . . . Acquisition Restructuring Max. Profitability Divest/Retain Acquisitions of companies Restructuring and Develop and
Slide 11: Corporate Level Transactions
QUIÑENCO OVERVIEW Proven Track Record in Value Creation CORPORATE LEVEL TRANSACTIONS . . . which has led to various transactions throughout its history, generating US$1.8 billion in profits over the last 20 years from divestments of US$4.4 billion . . . US$ 974 US$ 757(1) Telecom Telefónica del Sur
Slide 12: Strong Growth in NAV
QUIÑENCO OVERVIEW Proven Track Record in Value Creation STRONG GROWTH IN NAV . . . and an average annual compound growth rate of 13% in the net value of Quiñenco’s assets over the past 14 years (1) 7,873 Quiñenco-NAV(1)(2) 6,858 6,541 6,763 (MUS$) 5,789 5,137 5,351 5,364 4,660 3,071 3,275 2,721 1,98
Slide 13: Favorable Performance of NAV, Share Price & Dividends
QUIÑENCO OVERVIEW Proven Track Record in Value Creation FAVORABLE PERFORMANCE OF NAV, SHARE PRICE & DIVIDENDS NAV/Share Price Trend as of September 30, 2018 3.500 NAV: US$6.9 bln 3.000 2.500 2.000 1.500 Mkt.Cap: US$5.0 bln 1.000 500 0 NAV per share (Ch$) Share price (Ch$) (1) Market information and
Slide 14: Investment Criteria
QUIÑENCO OVERVIEW Proven Track Record in Value Creation INVESTMENT CRITERIA Based on its investment criteria Brand & consumer franchise development potential Controlling stakes Sufficient critical mass Access to strategic partners / Prior operating commercial or industry alliances / experience syner
Slide 15: Leading Market Positions
QUIÑENCO OVERVIEW Dominant Market Positions LEADING MARKET POSITIONS The company’s investment strategy allows it to maintain a leading position in all of its business areas and product segments #2 Cables worldwide #1 Beer in Chile #2 Soft drinks in Chile #2 Beer in Argentina e #2 Loans in Chile #2 F
Slide 16: Controlling Interest along with World Class Strategic & Commercial Alliances
QUIÑENCO OVERVIEW Controlling interest & World Class Partners CONTROLLING OR INFLUENTIAL INTEREST ALONG WITH WORLD CLASS STRATEGIC & COMMERCIAL ALLIANCES Quiñenco partners with world class players to develop its markets and products to take advantage of combined know-how, experience and financial ca
Slide 17: Diversified Investments
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing International Presence DIVERSIFIED INVESTMENTS Becoming one of the most diversified holding companies in Chile . . . Investments by Sector(1) Net Asset Value(2) (NAV) (US$ 6.1 billion as of September 30, 2018) (US$ 6.9 billion as of September
Slide 18: Growing and Diversified Revenues
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing International Presence GROWING AND DIVERSIFIED REVENUES . . . achieving diversified revenues with a positive growth trend Consolidated Revenues(1) Aggregate Revenues by Sector(2) (MUS$) (YTD September 2018) Port Services 5,916 2% Financial Ser
Slide 19: Sound Results
QUIÑENCO OVERVIEW Sound Financial Position SOUND RESULTS Sound bottom line results Net Income(1) Net Income(2) (MUS$) (YTD September 30, 2018, MUS$) 518 268 135.0% 233 233 165 134 146 99 65 CCU -6 23 16 2 Other (3) Transport Energy Port Services Manufacturing Total Financial Services 2014 2015 2016
Slide 20: Quiñenco Holding Conservative Financial Structure
QUIÑENCO OVERVIEW Sound Financial Position QUIÑENCO HOLDING CONSERVATIVE FINANCIAL STRUCTURE Long term investments are financed with equity and long term debt in Chilean pesos . . . Assets Liabilities and Equity US$ 6.1 billion as of September 2018 US$ 6.1 billion as of September 2018 Cash ST Debt 9
Slide 21: Low Financial Corporate Debt
QUIÑENCO OVERVIEW Sound Financial Position LOW FINANCIAL CORPORATE DEBT . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt (MUS$) 800 0,4 700 0,35 600 0,3 500 0,25 400 0,2 300 0,15 200 0,1 100 0,05 0 0 2014 2015 2016 2017 2018 (Sept) Net Debt Debt/Ca
Slide 22: Stable Dividend Cashflow
QUIÑENCO OVERVIEW Sound Financial Position STABLE DIVIDEND CASHFLOW . . . to the parent company based on good operating company performance Dividends Composition of Dividends (MUS$) (YTD September 2018) SM SAAM IRSA/CCU 456 14% 17% Banchile Vida 8% 125 121 121 99 2014 2015 2016 2017 sep-18 SM SAAM B
Slide 23: Sustainability Policy
QUIÑENCO OVERVIEW Strong Commitment to Sustainable Progress 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 COMMITMENT TO THE LEADERSHIP EXCELLENCE DEVELOPMENT COUNTRY • We are a
Slide 24: Agenda
QUINENCO AT A GLANCE QUINENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 25: CCU Materializes Transaction with Anheuser-Busch InBev on Budweiser Argentina
RECENT EVENTS CCU MATERIALIZES TRANSACTION WITH ANHEUSER-BUSCH INBEV ON BUDWEISER ARGENTINA AB INBEV - BUDWEISER • On May 2, 2018, the agreement announced by CCU and AB InBev regarding the early termination of the distribution license for Budweiser in Argentina was completed: o US$306 million single
Slide 26: Invexans Establishes a New Company in London, UK
RECENT EVENTS INVEXANS ESTABLISHES A NEW COMPANY IN LONDON, UK • On April 10, 2018, Invexans reported the establishment of a fully-owned subsidiary in London: Invexans Limited (Invexans UK). • The purpose of the company is to develop Quiñenco and its subsidiaries’ international businesses, particula
Slide 27: Quiñenco Successfully Places Bonds
RECENT EVENTS QUIÑENCO SUCCESSFULLY PLACES BONDS • During June 2018, Quiñenco successfully issued UF 7,000,000 (approximately US$297 million) in two series of bonds in the local market. • Series V : UF 2 million with a 7 year maturity, placed at a rate of UF + 1.70%. • Series W: UF 5 milion with a 2
Slide 28: Enex Acquires Road Ranger Travel Centers
RECENT EVENTS ENEX ACQUIRES ROAD RANGER TRAVEL CENTERS • On November 19, 2018, Enex acquired Road Ranger, the fourth largest network of highway travel centers in the USA. The total price paid by Enex amounted to US$289 million. • Road Ranger’s 38 travel centers are located on the main interstate hig
Slide 29: SM SAAM Signs Agreement to Acquire Boskalis' Share of Joint Tug Boat Operations
RECENT EVENTS SM SAAM SIGNS AGREEMENT TO ACQUIRE BOSKALIS’ SHARE OF JOINT TUG BOAT OPERATIONS • On February 11, 2019, SM SAAM announced an agreement with Royal Boskalis Westminster (Boskalis), parent company of SMIT, to acquire its interest in the two joint operations for the tug boat business in Br
Slide 30: Agenda
QUINENCO AT A GLANCE QUINENCO OVERVIEW RECENT EVENTS CONCLUSIONS * QUINENCO S.A.
Slide 31: Outlook
CONCLUSIONS OUTLOOK FACTORS THAT CONTRIBUTE TO QUIÑENCO’S ABILITY TO PURSUE AND UNDERTAKE NEW INVESTMENT OPPORTUNITIES PORTFOLIO HEALTHY STRONG CASH OPTIMIZATION FINANCIAL POSITION STRUCTURE • Good performance • Sound financial • Strong cash levels of main operating indicators • Conservative compani
Slide 32: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION QUINENCO S.A.
Slide 33: Appendix: Main Operating Companies
APPENDIX MAIN OPERATING COMPANIES QUINENCO S.A.
Slide 34: Banco de Chile: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (September 2018) 50.0% 50.0% • 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$53 billion. 51.2% (Voting Rights) 34.1% (Economic Rights)
Slide 35: Banco de Chile: ROAE, Operating Revenues, Net Income
MAIN OPERATING COMPANIES • In 2017, operating revenues declined by 1.5%, mostly due to ROAE non-recurring revenues in 2016, and the unfavorable effect of lower inflation. Customer-related revenues continued increasing based on loan growth, mainly in retail segment, and higher fee income. Loan loss p
Slide 36: Inversiones Vita: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (September 2018) • Inversiones Vita participates in the life insurance business through Banchile Seguros de Vida (Banchile 66.3% 99.7% Vida) since the year 2000 and in the general insurance business since 2017, through SegChile Seguros Generales (SegChile
Slide 37: CCU: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (September 2018) • Founded in 1850, CCU is a multi-category branded beverage company operating in Chile, Argentina, Bolivia, Colombia, Paraguay, Uruguay and Peru, with an extensive wine export business to more 50.0% 50.0% than 80 countries. • Assets of US
Slide 38: CCU: EBITDA by Business Segment, Sales, EBITDA
MAIN OPERATING COMPANIES EBITDA* by Business Segment (YTD September 2018) Wine • Sales grew 8.9% in 2017 to MUS$2,572, reflecting growth in 4% the International Business and Chile segments, compensating lower sales in the Wine segment. • EBITDA reached MUS$495 in 2017, up by 15.1% from 2016, mostly
Slide 39: Invexans: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (September 2018) • Invexans’ main asset is its 28.55 % stake in Nexans, a leading cable manufacturer with worldwide presence, based in 98.7% France. • An agreement signed in September 2008 allowed Invexans (Madeco at the time) to become the main sharehold
Slide 40: Nexans: Sales by Key End Markets
MAIN OPERATING COMPANIES JUNE 2018 SALES BY KEY-END MARKETS Other Activities 16% • Nexans is a worldwide leader in the cable industry with Building & presence in 34 countries and commercial activities Territories worldwide, after over a century of progress. 42% • Headquartered in Paris, France, Nexa
Slide 41: Invexans: Operating Income, Net Income
MAIN OPERATING COMPANIES Operating Income (Loss) (MUS$) • In 2017 Invexans’ net income mainly reflects its proportional 0 share in Nexans’ net gain for the year, further improving from -1 -1 the gain reported in 2016, reflecting the favorable impact of the strategic initiatives implemented and a pos
Slide 42: Enex: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE • Enex S.A. has a network of 461 service stations, with 148 (September 2018) convenience stores. • Main business activities: • Distribution of fuels through its service stations. • Distribution of fuels to industrial clients and transport sector. • Distri
Slide 43: Enex: Sales, Operating Income, Net Income
MAIN OPERATING COMPANIES • In 2017 sales reached MUS$2,860, up by 11.7%, mainly due Sales (MUS$) to higher fuel prices. Gross income increased 2.0%, primarily due to higher sales volumes and improved margins in 3,296 lubricants. 2,860 19.3% • Operating income decreased 58.3% to MUS$17 in 2017, due 2
Slide 44: CSAV: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (September 2018) • CSAV, founded in 1872, is one of the oldest shipping Others companies in the world. 56.2% 43.8% • Its activities include overseas transport of containerized cargo through its investment in Hapag-Lloyd and car carrier. • Total assets as
Slide 45: CSAV: Sales, EBITDA, Net Income
MAIN OPERATING COMPANIES • In 2017 CSAV reported a net loss of MUS$188, mostly Sales (MUS$) reflecting the accounting loss of US$167 million related to its dilution in Hapag-Lloyd following its merger with UASC. This 235 loss was partly offset by a gain derived from CSAV’s purchase of a higher stake
Slide 46: Hapag-Lloyd: Main Operating Companies
MAIN OPERATING COMPANIES US$ Sep Sep 2014 2015 2016 2017 (millions) 2017 2018 • Hapag-Lloyd is a leading global liner shipping company, with a fleet of 219 modern ships, 9.8 million TEU transported a year Sales 9,046 9,814 8,546 11,286 8,168 10,072 and a total capacity of around 1.6 million TEU. • F
Slide 47: SM SAAM: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (September 2018) Others • SM SAAM is dedicated to port services and management of 52.2% 47.8% port concessions, including three main business areas: port terminals, tug boats, and logistics. • SM SAAM has presence in 13 countries and over 70 ports in Amer
Slide 48: SM SAAM: Sales, Operating Income, Net Income
MAIN OPERATING COMPANIES • In 2017, SM SAAM’s consolidated sales reached MUS$468, up Sales (MUS$) by 18.8%, mainly due to higher sales of port terminals, boosted by the addition of Puerto Caldera in Costa Rica and positive performance of the port of Guayaquil, in Ecuador, 492 partially offset by low
Slide 49: Quiñenco S.A.
QUINENCO S.A.