Sonda S.a. · BCS:SONDA
Sonda — J.P. Morgan Southern Cone Andean Conference 2012
40 slides from Sonda's conference presentation, June 2012
Slide 1: Corporate Presentation
Corporate Presentation June, 2012
Slide 2: Our Company
Our Company 2
Slide 3: Company overview
Company overview Largest Latin American IT and an undisputed leader in systems integration, support and IT Services provider Outsourcing Independent service with world-class credentials and provider quality certifications Business model is based closeness and contact with on developing long term cus
Slide 4: Company overview: highly diversified customer base
Company overview Highly diversified by geography and industry customer base as a consequence of a increase in high value-added revenues strength Positive financial results of recurring revenues and a successful regional expansion Investment plan for US$ intended to continue consolidating SONDA regio
Slide 5: Company overview: founded in Chile in 1974, present in 10 countries
Company overview Founded in Chile in 1974, SONDA has Costa Rica more than 37 years of Colombia experience Mexico Panama Present in 10 countries in the region, with +1,000 cities under Ecuador coverage Brazil Over 12,500 employees in the Peru region out of which more than 5,500 are Uruguay based in B
Slide 6: Comprehensive IT offerings and IT Adoption Lifecycle
What we do for our customers Comprehensive IT offerings We are a comprehensive provider of IT solutions with a vast experience in offering services for resolving from the simplest needs through to the most complex, with a business focus aligned to our clients’ strategies. IT Adoption Lifecycle Conti
Slide 7: Comprehensive offerings
Comprehensive offerings IT SERVICES APPLICATIONS PLATFORMS Solving business problems and needs through solutions based on Information Technology. Comprehensive offering ranging from the delivery of infrastructure and support services to large-scale and complex systems integration projects and full I
Slide 8: Strong customer base
Strong customer base MANUFACTURING FINANCE TELECOM & MEDIA RETAIL Our customers are leading companies in their industries HEALTH ENERGY & MINING SERVICES/UTILITIES PUBLIC SECTOR More than 5,000 throughout Latin America 8
Slide 9: Alliances with world class vendors
Alliances with world class vendors ISO 9001:2008 Quality management system based on processes and focused on continuous improvement and customer satisfaction ITIL IT Infrastructure Library Best practices for managing IT services PMO Project Management Office Quality methodology in managing projects
Slide 10: IT Industry in Latin America
IT Industry in Latin America 10
Slide 11: Latin America, still behind in IT adoption
Latin America, still behind in IT adoption There is a significant gap in the IT - IT Spending as a percentage of GDP Investment as a percentage of GDP between developed and emerging economies 15.2% 9.7% 7.2% 6.8% 5.3% 2.1% Western Central and Asia/Pacific India Latin Worldwide Europe Eastern America
Slide 12: Favorable outlook for IT industry in Latin America
Favorable outlook for IT industry in Latin America 9.7 % CAGR (2010-2015) LATIN AMERICA 10.5 9.8 9.2 8.2 10.0 % CAGR (2010-2015) BRAZIL % CHILE % MEXICO % % COLOMBIA CAGR CAGR CAGR CAGR IN STRATEGIC MARKETS 2010-2015 2010-2015 2010-2015 2010-2015 10.7 % CAGR (2010-2015) IT SERVICES IN LATAM Source:
Slide 13: Favorable outlook for IT industry in Latin America
Favorable outlook for IT industry in Latin America Projected CAGR % (2010-2015) 13.3% 11.8% 11.7% 10.7% 10.6% 10.8% 10.9% 10.0% 9.2% 9.5% 8.7% 8.5% 8.7% 8.7% 5.8% Latin America Brazil Chile Colombia Mexico Platforms IT Services Applications Source: IDC 13
Slide 14: Favorable outlook for IT industry in Latin America
Favorable outlook for IT industry in Latin America Projected Annual Investment in IT (US$ million) Breakdown by Country 149,016 136,592 123,519 112,197 24% 24% 23% 22% 21% 102,948 18% 18% 17% 17% 18% 5% 5% 5% 6% 6% 5% 5% 4% 4% 4% 48% 48% 49% 50% 52% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015
Slide 15: Solid Financial Performance
Solid Financial Performance Balanced growth and consistent cash-flow generation 15
Slide 16: Recent financial performance: revenues
Recent financial performance Revenues 2006 – 2011 (US$ million) Revenues: 1Q11 – 1Q12 (US$ million) 1,141.8 CAGR (2006-2011) = +26.6% 951.9 315.9 +21.2% 260.6 671.3 703.0 539.5 350.8 1Q11 1Q12 2006* 2007* 2008* 2009* 2010 2011 (*) Financial statements prepared under Chilean GAAP Peso figures convert
Slide 17: Recent financial performance: EBITDA
Recent financial performance EBITDA 2006 – 2011 (US$ million) EBITDA: 1Q11 – 1Q12 (US$ million) 176.5 CAGR (2006-2011) = +23.5% 164.5 54.0 43.5 +24.2% 127.2 115.3 17.1% 98.3 16.7% 17.1% 16.7% 61.4 1Q11 1Q12 18.2% 18.3% 17.5% 17.2% 17,3% 15.5% 2006* 2007* 2008* 2009* 2010 2011 EBITDA Margin (*) Finan
Slide 18: Revenues evolution 2006 – 1Q12
Revenues evolution 2006 – 1Q12 2006 2011 1Q12 11% 11% 12% 8% 12% 9% 43% 46% 16% 66% 32% 35% CHILE BRAZIL MEXICO OPLA CHILE BRAZIL MEXICO OPLA CHILE BRAZIL MEXICO OPLA 18
Slide 19: EBITDA evolution 2006 – 1Q12
EBITDA evolution 2006 – 1Q12 2006 2011 1Q12 10% 6% 9% 3% 9% 8% 8% 23% 21% 62% 62% 80% CHILE BRAZIL MEXICO OPLA CHILE BRAZIL MEXICO OPLA CHILE BRAZIL MEXICO OPLA 19
Slide 20: Revenues breakdown by industry
Revenues breakdown by industry 2006 2011 Telecom & Others Others Media 9% 11% Energy & Retail 10% Retail Telecom & Mining 25% 3% 35% Media Manufacturing 15% 6% Health Energy & 4% Mining 11% Finance Public Sector 15% 16% Finance Manufacturing Health Public Sector 19% 14% 2% 7% 20
Slide 21: Consolidated Results FY10 – FY11 / 1Q11 – 1Q12
FY10 – FY11 / 1Q11 – 1Q12 Consolidated Results Revenues 1Q11 – 1Q12 (US$ million) + 21.2% 315.9 260.6 US$ million FY11 FY10 Var (%) 1Q12 1Q11 Var (%) Revenues 1,141.8 858.0 33.1% 315.9 260.6 21.2% EBIT 132.8 111.9 18.7% 38.8 33.6 15.3% Operating Margin 11.6% 13.0% 12.3% 12.9% 1Q11 1Q12 EBITDA 176.5
Slide 22: Chile
Market leader with over US$ 487 million in Chile revenues for 2011 and US$ 147 million for 1Q12 US$ million FY11 FY10 Var (%) 1Q12 1Q11 Var (%) Revenues 487.2 383.9 26.9% 146.9 104.8 40.2% EBIT 80.3 66.5 20.7% 25.2 21.3 18.3% Operating Margin 16.5% 17.3% 17.1% 20.3% EBITDA 108.8 93.0 17.0% 33.5 27.8
Slide 23: Brazil
Operations generating nearly 40% of Brazil consolidated revenues in 2011 and 30% in 1Q12 US$ million FY11 FY10 Var (%) 1Q12 1Q11 Var (%) Revenues 401.4 316.5 26.8% 102.7 96.6 6.3% EBIT 32.5 32.7 -0.7% 8.5 8.7 -1.8% Operating Margin 8.1% 10.3% 8.3% 9.0% EBITDA 40.0 38.2 4.7% 11.4 10.4 9.6% EBITDA EBI
Slide 24: Mexico
Expected revenues of US$ 120 million for 2012 Mexico with significant improvement in margins US$ million FY11 FY10 Var (%) 1Q12 1Q11 Var (%) Revenues 132.4 73.1 81.1% 28.4 33.7 -15.7% EBIT 13.5 8.3 61.7% 3.5 2.7 29.6% Operating Margin 10.2% 11.4% 12.5% 8.1% EBITDA 16.7 9.4 76.7% 4.5 3.5 30.4% EBITDA
Slide 25: OPLA
Revenues reaching over US$120 million in OPLA 2011 and growing 47.9% in 1Q12 US$ million FY11 FY10 Var (%) 1Q12 1Q11 Var (%) Revenues 120.8 84.5 42.9% 38.0 25.7 47.9% EBIT 6.6 4.4 51.6% 1.5 0.9 62.7% Operating Margin 5.5% 5.2% 4.0% 3.6% EBITDA 11.1 7.7 44.4% 4.7 1.8 155.3% EBITDA EBITDA Margin 9.2%
Slide 26: New Deals Closed
New Deals Closed Growth in new contracts New deals breakdown by region 2007 - 2011 2011 1,340 CAGR (2007-2011) = +32.2% 7% 1,038 14% 11% 8% 39% 62% 62% 611.3 668.5 (US$ million) 13% 55% 55% 18% 439.3 8% 53% 53% 53% 53% 61% 61% 42% 31% 31% 31% 29% 30% 29% 30% 31% 31% Chile Brazil Mexico OPLA 2007 200
Slide 27: Financial Statements
Financial Statements (US$ million) Mar-12 Dec-11 Var.% Assets 1,268.1 1,190.1 6.6% Current Assets 586.3 563.5 4.1% Cash and Cash Equivalents 91.6 67.6 35.6% Other Assets, Current 494.7 495.9 -0.2% Property, Plant and Equipment, Net 170.3 163.0 4.5% Intangibles Assets and Goodwill 392.2 346.9 13.1% O
Slide 28: Stock Performance
Stock Performance 28
Slide 29: SONDA vs. IPSA
SONDA vs. IPSA 18 Months YTD May 31, 2012 May 31, 2012 145 120 Ch$ 1,394 January 02, 2012 Ch$ 1,394 Ch$ 1,250 December 01, 2010 130 Ch$ 1,081 115 110 100 85 70 100 Dec-10 Mar-11 Jul-11 Nov-11 Mar-12 Ene-12 Feb-12 Mar-12 Abr-12 May-12 IPSA SONDA IPSA SONDA Source: Bolsa de Comercio de Santiago 29
Slide 30: YTD Volume Traded
YTD Volume Traded 14 Average 12 US$ 1.7 mm 10 8 US$ million 6 4 2 0 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Source: Bolsa de Comercio de Santiago 30
Slide 31: Market Cap Evolution
Market Cap Evolution 2500 2,500 May, 2012 US$ 2,200 mm 2,000 2000 Nov, 2006 1500 1,500 US$ 900 mm US$ million 1000 1,000 500 500 00 Nov- Nov- Dec- Dec- Dec- Ene- May- Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 May-12 06 07 08 09 10 12 12 Source: Bolsa de Comercio de Santiago 31
Slide 32: Investment Plan 2010-2012
Investment Plan 2010-2012 32
Slide 33: Investment Plan 2010 - 2012: US$500 million
Investment Plan 2010 - 2012 Total investment for US$500 million to finance: Implementation of new systems integration projects Eight new companies acquired in Latin America Strengthening the positioning in Brazil, expanding New headquarters in Brazil territorial coverage and taking advantage of the
Slide 34: Investment Plan 2010 - 2012: acquisitions
Investment Plan 2010 - 2012 NEXTIRAONE TELSINC Colombia SOFTEAM KAIZEN US$ 280 million invested in Perú acquisitions during 2010-2012 QUINTEC ELUCID Acquired companies had US$ 465 Chile million in yearly revenues before being PARS acquired New companies strengthen CEITECH SONDA’S regional offering a
Slide 35: New Infrastructure
São Paulo – Brazil New Infrastructure 17.000 m2 in total surface 35
Slide 36: New Datacenter Infrastructure
New Datacenter Infrastructure Latest technology: Two new datacenters in Brazil and Chile, adding 2,200 squared meters in capacity Both projects with ANSI/TIA-942 TIER III certifications, guaranteeing high levels of security Operating since 2Q11 in Brazil and starting operations on 3Q12 in Chile 36
Slide 37: Innovative Solutions – Cloud Computing Initiative
Innovative Solutions – Cloud Computing Initiative The first Enterprise Cloud in Latin America focused on medium to large sized companies Regional coverage • First vBlock in Latin America, among the first in the world • Currently operating in Chile and Brazil, Mexico by 2H12 • Local Cloud Infrastruct
Slide 38: Perspectives
Perspectives 1 Favorable outlook for the IT industry in Latin America 2 Execution of the US$500 million investment plan 3 New acquisitions create synergy and margin improvement opportunities 4 Extended customer base fosters cross-selling opportunities 5 Pipeline of new business opportunities allow t
Slide 39: Key Investment Considerations
Key Investment Considerations – Unique opportunity to invest in the IT sector of Latin America – The leading Latin-American IT services company – 37 years of consistent profitability – Present in markets with high growth potential – #1 in value added segments within the Chilean IT market – Diversifi
Slide 40: Contact
Tel (56-2) 657 50 00 Teatinos 500 Santiago. CHILE www.SONDA.com
Sonda — J.P. Morgan Southern Cone Andean Conference 2012 on 6ix