Quinenco S.A. · BCS:QUINENCO
Quinenco — Investor Presentation (June 2011)
33 slides from Quinenco's investor presentation, June 2011
Slide 1: Quiñenco S.A. June, 2011
QUINENCO S.A. June, 2011
Slide 2: Overview
Overview Recent Events Financial Results Main Operating Companies Conclusions
Slide 3: Quiñenco Group of Companies
Quiñenco Group of Companies 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$4.7 billion in 2010 The Quiñenco group of companies employs over 16,000 people in Chile and abroad
Slide 4: Quiñenco – Attractive Fundamentals
Quiñenco – Attractive Fundamentals Dominant position Quiñenco’s companies are leaders in their respective in its markets industries Holding has proven track record in value creation evidenced by Proven track record sale of investments of approx. US$ 4.6 bln and gains on sale of in value creation
Slide 5: Ownership Structure
Ownership Structure Mining Luksic Group Chilean Stock 83% Exchanges QUIÑENCO Industrial/ Financial Services 17% Market Capitalization*: US$4.5 billion *As of April 30, 2011
Slide 6: Quiñenco: Main Operating Companies
Quiñenco: Main Operating Companies % Control 61.7% 66.1% 47.7% 18% 100% Ex-Shell Banco de Chile CCU Madeco CSAV Chile Mkt Cap: US$12.4 bln Mkt Cap: US$3.8 bln Mkt Cap: US$331 mln Mkt Cap: US$1.6 bln US$ 633 mln ¾ 2nd ranked bank ¾ N°1 Chilean beer ¾Manufacturer of ¾Largest shipping ¾N°2 retail ¾ Mer
Slide 7: 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 8: Chilean Conglomerate: Consolidated Assets by Country
Chilean Conglomerate Consolidated Assets by Country US$44 billion Argentina 0.2% Peru 0.1% Chile Chile 85% 99.7% Note: Figures translated from Chilean pesos as of December 31, 2010, at exchange rate of: Ch$468.01= 1US$ Consolidated assets are concentrated in Chile. Investments abroad are all at the
Slide 9: Holdings by Sector
Holdings by Sector Corporate Level Book Value Net Asset Value (US$3.6 bln) (US$5.8 bln) Manufacturing Other 3% 1% Other Cash Cash 2% 42% Beverage & Food 25% Manufacturing 21% 7% Beverage & Food 10% Financial Services Financial Services 39% 50% Note: Market information and book values as of December
Slide 10: NAV & Share Price Trend
NAV & Share Price Trend Note: Market information and book values as of December 31, 2010 NAV: US$5.8 billion Market Cap: US$4.2 billion
Slide 11: 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
Slide 12: World Class Strategic & Commercial Alliances
Quiñenco: World Class Strategic & Commercial Alliances Quiñenco partners with world class players to develop its markets & products to take advantage of combined know-how, experience and financial capacity
Slide 13: Healthy Financial Structure
Healthy Financial Structure Corporate Level Assets Liabilities and SH Equity US$3.7 billion US$3.7 billion Other ST Debt 1% Other Cash 2% Liabilities 41% 8% LT debt 3% Min. Interest SH Equity 0% 88% LT Investments 57% Leverage = 0.14 As of December 31, 2010 Long-term investments are financed with eq
Slide 14: Net Debt Corporate Level (adjusted)
Net Debt Corporate Level (adjusted) In US$ mlns 2006 2007 2008 2009 2010 Debt 763 778 451 356 366 Cash -218 -360 -114 -221 -1,534 Net Debt 545 417 337 135 -1,168 * Adjusted for proportionate share of debt and cash of IRSA (50%), and of LQIF (67.04% in 2008 and 2009, 50% starting April 2010). Note: F
Slide 15: Main Indicators Corporate Level
Main Indicators Corporate Level Debt reduction has implied lower leverage High interest coverage Negative net debt LEVERAGE * INTEREST COVERAGE 0,45 231 0,36 0,14 0,14 0,10 47 3 7 11 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 * Leverage = Tot Liabilities / [Equity + Min Int] Quiñenco’s
Slide 16: Dividend Cashflow Corporate Level
Dividend Cashflow In US$ mlns Corporate Level 326 320 280 230 Banco de Chile 240 227 LQIF (additional) 200 CCU Madeco 160 113 124 Telsur 120 Entel 80 Others 40 0 2006 2007 2008 2009 2010 Note: Figures translated from nominal Chilean pesos at the exchange rate of : Ch$468.01= 1US$ Additional dividend
Slide 17: Overview
Overview Recent Events Financial Results Main Operating Companies Conclusions
Slide 18: Quiñenco acquires 18% stake in CSAV
Quiñenco acquires 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$285 per share). On April 6, 2001, Quiñenco acquires an additional 8% stake in CSAV, also from Marinsa,
Slide 19: Quiñenco signs agreement to acquire Shell's assets in Chile
Quiñenco signs agreement to acquire Shell’s assets in Chile March 31, 2011, Quiñenco announces agreement with Royal Dutch Shell PLC (Shell) to acquire Shell’s assets in Chile , including the distribution of fuel through Shell’s service stations across the country, distribution of lubricants, and o
Slide 20: Overview
Overview Recent Events Financial Results Main Operating Companies Conclusions
Slide 21: Contribution to Quiñenco's Net Income by Segment
Contribution to Quiñenco’s Net Income by Segment In US$ mlns 12/31/2009 12/31/2010 % Change Manufacturing 38.8 (6.0) -116% Financial 433.5 604.9 40% Other 141.2 434.9 208% Consolidated Net Income 613.5 1,033.8 69% Minority Interest (281.5) (410.7) 46% Net Income attributable to Controller 332.0 623.
Slide 22: Overview
Overview Recent Events Financial Results Main Operating Companies Conclusions
Slide 23: Banco de Chile – Financial Services
Banco de Chile Financial Services Established in 1893, Banco de Chile has a highly recognized name in Chile 2nd largest bank in the Chilean financial system One of the most profitable banks in terms of return on assets and equity Assets of US$39 billion Over 14,000 employees Nationwide n
Slide 24: Banco de Chile – Financial Services
Banco de Chile Financial Services (MUS$, as of December 31, 2010) During the past 4 years the Bank’s operating income has grown at an annual compound rate ROAE of 19%, reaching MUS$2,499 as of December 2010. Net income in 2010 was MUS$809, 47% above 2009 results Loan portfolio grew 9.0% over t
Slide 25: CCU – Beverage & Food
CCU Beverage & Food Founded in 1850, CCU is the largest brewery and beverage producer in Chile, and the second brewery in Argentina. Assets of US$2.5 billion. Over 5,400 employees. 18 facilities in Chile. 4 facilities in Argentina. Extensive distribution network reaching over 90,000 sale
Slide 26: CCU – Beverage & Food
CCU Beverage & Food (MUS$, as of December 31, 2010) Sales grew 8% during 2010 to MUS$1,791 EBITDA by Business Segment boosted by growth in sales volumes YTD September 2010 Net income for the period reached MUS$237, Spirits Other 6% Wine 14% less than the previous period, due to 4% 8% lower non-o
Slide 27: Madeco – Manufacturing
Madeco Manufacturing Founded in 1944, Madeco is the main Latin American manufacturer of copper and aluminum products as well as flexible packaging. Global presence through exports of a variety of copper and aluminum products to the North American and Ranking Mkt Share European markets with over
Slide 28: Nexans – Manufacturing
Nexans Manufacturing Nexans is the worldwide leader in the cable industry with 2010 Sales by Origin presence in 40 countries and commercial activities worldwide, after over a century of progress. Headquartered in Paris, France, Nexans produces cables and cabling systems at more than 90 productio
Slide 29: Madeco – Manufacturing
Madeco Manufacturing (MUS$, as of December 31, 2010) Sales in 2010 grew by 32% to MUS$418 SALES boosted by brass mills and flexible packaging. Net income was a loss of MUS$11 mainly due to the settlement reached with Nexans that implied a negative adjustment to the price of the cable unit. EBITD
Slide 30: Overview
Overview Recent Events Financial Results Main Operating Companies Conclusions
Slide 31: General Outlook for Quiñenco
General Outlook for Quiñenco Portfolio Healthy Low Level Optimization Financial of Debt Structure Good performance of main Sound financial indicators High Cash levels operating companies should Well structured Balance Sheet Current debt levels contribute to sustained AA- local rating all
Slide 32: Highlights
Highlights ¾ Proven track record and experience in core business segments ¾ Agility and financial strength allows Quiñenco to take advantage of business opportunities as they arise ¾ Strong shareholder group ¾ Diversified Chile risk ¾ Ability to attract strategic partners and commercial alliances co
Slide 33: Quiñenco S.A. – Thank you for your attention
QUIÑENCO S.A. Thank you for your attention