Quinenco S.a. · BCS:QUINENCO
Quinenco — Investor Presentation (August 2013)
44 slides from Quinenco's investor presentation, August 2013
Slide 1: Company Presentation / August 2013
Company Presentation / August 2013 1
Slide 2: Quiñenco Overview
Recent Events Financial Main Operating Conclusions Quiñenco Overview Overview Companies 2
Slide 3: Quiñenco
Quiñenco • Quiñenco is one of Chile’s largest business conglomerates with US$57 billion in assets under management • Companies managed by Quiñenco generated sales revenue of US$12 billion in 2012 • The Quiñenco group of companies employ around 32,780 people in Chile and abroad 3
Slide 4: Ownership Structure
Ownership Structure Minority Shareholders (Chilean Stock Exchanges) 81% 19% Mining Industrial / Financial Services Market Capitalization US$ 3.3(1) billion (1) Market Capitalization as of July 31, 2013 4
Slide 5: Quiñenco: Main Operating Companies
Quiñenco: Main Operating Companies % Control as of March 2013 58.5% 66.1% 22.4%(2) 64.3% (3) 37.4% 37.4% 100% Mkt.Cap(1): Mkt.Cap(1): Mkt.Cap(1): Mkt.Cap(1): Mkt.Cap(1): Mkt.Cap(1): US$ 691 mln (4) US$ 13.3 bln US$ 4.3 bln US$ 1.6 bln US$ 228 mln US$ 0.5 bln US$ 0.9 bln • 1st bank in Chile • No.1 Ch
Slide 6: First Class Board and Management
First Class Board and Management Board of Directors Andrónico Luksic Craig Jean‐Paul Luksic Fontbona Nicolás Luksic Puga Fernando Cañas Berkowitz Gonzalo Menéndez Duque Hernán Büchi Buc Matko Koljatic Maroevic Chairman Vice Chairman Director Director Director Director Director Senior Management • Fr
Slide 7: Over 50 years of history
Over 50 years of history 1957 ‐ 1998 1999 ‐ 2008 2009 ‐ 2012 1957 Sociedad Forestal Quiñenco S.A is 1999 Quiñenco sells stake in OHCH, later 2009 Sale of remaining Entel shares (2.9%) created. acquiring 51.2% of Banco de A. Edwards and 8% of Banco de Chile. 2010 Quiñenco divests Telsur. 1960’s Socie
Slide 8: Focused Diversification
Focused Diversification • Beverage & Food • Beverage & Food • Beverage & Food • Beverage & Food • Beverage & Food • Beverage & Food • Hotels • Hotels • Hotels • Manufacturing • Manufacturing • Manufacturing • Manufacturing • Manufacturing • Telecom • Financial Services • Financial Services • Telecom
Slide 9: Quiñenco – Investment Criteria
Quiñenco – Investment Criteria Brand & consumer franchise development potential Sufficient critical mass Prior operating or industry experience Access to strategic partners / commercial alliances / synergies Growth platform or add‐on acquisition potential Controlling stakes 9
Slide 10: Quiñenco: World Class Strategic & Commercial Alliances
Quiñenco: World Class Strategic & Commercial Alliances Beverage & Food Manufacturing Energy Financial 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 Divest Continuous growth of Shareholder value Acquisition • Acquisitions • Restructurings • Development & maximization of profitability of business portfolio • Divestments 11
Slide 12: Corporate Level Transactions
Corporate Level Transactions Quiñenco has carried out various transactions throughout its history, generating US$2.1 billion in profits over the last 15 years from divestments of US$4.8 billion 2,114 1,138 884 * 72 46 Telecom Retail Real estate/Hotels Beverage & Food Utility Financial Services Total
Slide 13: Leading Market Positions
Leading Market Positions The company’s investment strategy allows it to maintain a leading position in all of its business areas and product segments: Business Industry Product Ranking(1) Market Share (1) Loans 2 19% Financial Services Deposits 1 17% Beer Chile 1 79% Beer Argentina 2 23% Carbonated
Slide 14: Diversified Investments
Diversified Investments Quiñenco is one of the most diversified holding companies in Chile. During its history it has invested in sectors where it has a recognized track‐record and experience in the industry. Investments by Sector Net Asset Value(1) (NAV) (US$ 4.9 billion as of March 31, 2013) (US$
Slide 15: NAV & Share Price Trend
NAV & Share Price Trend NAV/Share Price Trend as of March 31, 2013 3.000 2.510 2.448 2.509 2.500 2.239 2.194 2.000 1.500 1.538 1.540 1.610 1.379 1.315 1.000 500 0 Mar‐ 12 Jun‐ 12 Sep‐ 12 Dec‐ 12 Mar‐ 13 NAV per share (CH$) Share price (CH$) Note: Market information and book values as of March 31, 20
Slide 16: Diversified Revenues and Results (2012)
Diversified Revenues and Results (2012) Quiñenco has achieved diversified revenues and results, thus generating stable cash flows Aggregate Revenues by Sector (1) Net Income (2) (YTD December 2012) (YTD December 2012, MUS$) Transport Financial Services 28% 23% 290.9 226.0 CCU 29.5 50.1 SM SAAM Port
Slide 17: Diversified Revenues and Results (1Q 2013)
Diversified Revenues and Results (1Q 2013) Quiñenco has achieved diversified revenues and results, thus generating stable cash flows Aggregate Revenues by Sector (1) Net Income (2) (YTD March 2013) (YTD March 2013, MUS$) Port & Shipping Serv. 4% Financial Services 23% Transport 27% 88.2 66.8 SM SAAM
Slide 18: 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$) (YTD March 2012) CCU 24% 323 228 166 101 60 2009 2010 2011 2012 Mar‐13 Banchile Vida Other Banchile Seguros de Vida 76% CSAV Entel Tels
Slide 19: Quiñenco – Strong Fundamentals
Quiñenco – Strong Fundamentals Dominant position Quiñenco’s companies are leaders in their respective markets. in its markets Proven track record in value Holding has proven track record in value creation by evidenced by sale of investments creation for approximately US$ 4.8 bln and gains on sale of
Slide 20: Recent Events
Quiñenco Recent Events Financial Main Operating Conclusions Overview Overview Companies 20
Slide 21: Quiñenco reaches agreement to acquire Terpel’s assets in Chile
Quiñenco reaches 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
Slide 22: Shareholders’ Meeting Approves division of Madeco
Shareholders’ Meeting Approves division of Madeco • On March 27, 2013, the division proposed by the Board was approved. The division responds to the relevance the investment in Nexans has attained. – Allows increased efficiency in the management of the operating units – Improved visibility of result
Slide 23: Quiñenco, CSAV and CCU have announced capital increases
Quiñenco, CSAV and CCU have announced capital increases CSAV Capital Increase • On April 29, 2013, CSAV’s Shareholders’ Meeting approved a capital increase of US$500 million, to finance the acquisition of 7 new 9,300 TEU vessels, the prepayment of financial debt (at a discount), and the continuation
Slide 24: Financial Overview
Quiñenco Recent Events Financial Overview Main Operating Conclusions Overview Companies 24
Slide 25: Sound Results
Sound Results Quiñenco has reported increasing revenues and strong bottom line results Revenues(1) Net Income(2) (MUS$) (MUS$) 5,955 618 4,569 329 296 2,674 2,240 186 1,368 1,528 88 19 2009 2010 2011 2012 Mar‐12 Mar‐13 2009 2010 2011 2012 Mar‐12 Mar‐13 Quiñenco started reporting in accordance with I
Slide 26: Quiñenco Holding: Conservative Financial Structure
Quiñenco Holding: Conservative Financial Structure Long term investments are financed with equity and long term debt in Chilean pesos Assets Liabilities and Equity US$ 5.0 billion as of March 2013 US$ 5.0 billion as of March 2013 Other ST Debt Cash 2% 1% 14% Other Liabilities 3% LT Debt 13% SH Equit
Slide 27: Low Financial Corporate Debt
Low Financial Corporate Debt Asset disposals and strong dividend flow have allowed Quiñenco to maintain low levels of debt Net Debt MUS$ 467 259 134 117 ‐1,158 2009 2010 2011 2012 Mar‐13 MUS$ 2009 2010 2011 2012 Mar‐13 Debt 353 363 807(1) 942 847 Cash ‐219 ‐1,520 ‐339 ‐683 ‐730 Net Debt 134 ‐1,158 4
Slide 28: Main Operating Companies
Quiñenco Recent Events Financial Main Operating Companies Conclusions Overview Overview 28
Slide 29: Banco de Chile
Banco de Chile • Established in 1893, Banco de Chile has a highly • Nationwide network of 434 branches and 1,915 recognized name in Chile ATMs • One of the most profitable banks in terms of • Traded on the NYSE, LSE, Latibex and Santiago return on assets and equity Stock Exchanges • Assets of US$49
Slide 30: Banco de Chile
Banco de Chile • In 2012 the Bank’s net operating revenues grew 5.0%, based on higher loans to customers and ROAE a higher balance of demand deposits and current accounts, mitigated by higher loan provisions. During 1Q 2013, this trend continued. 22.7% 23.2% 27.0% 26.6% 23.9% 22.3% • Net income in 2
Slide 31: CCU
CCU • Founded in 1850, CCU is the largest brewery and • Jointly controlled with Heineken, 2nd largest beverage producer in Chile, and the second brewery worldwide. brewery in Argentina. • Affiliate Foods participates in sweet snack • Assets of US$2.8 billion. business. • Over 6,400 employees. • Ente
Slide 32: CCU
CCU • Sales grew by 10.9% in 2012 to MUS$2,241. 1Q EBITDA by Business Segment March 2013 2013 continued with strong growth of 8%. • EBITDA was MUS$492 decreasing by 1.9% from Spirits Other 2011. However, in 1Q 2013 EBITDA grew by Wine 2% 7% 4.7%, based mostly on the non‐alcoholic 3% beverage segment
Slide 33: Invexans/Madeco
Invexans/Madeco • Madeco is a regional leader in flexible packaging, • Shareholders’ Meeting held in March 2013, and a relevant actor in brass mills and profiles. approved division of Madeco, based on • 12 plants in Chile, Argentina, Peru and Colombia. significance of investment in Nexans, so as to
Slide 34: Invexans/Madeco
Invexans/Madeco • In 2012 operating income and net income include a Sales gain related to negative goodwill arising from the accounting method of the investment in Nexans. Madeco (historical) Invexans Madeco • En 1T 2013, Invexans does not have relevant results, (newco) 418 437 423 because Nexans do
Slide 35: Nexans
Nexans • Nexans is a worldwide leader in the cable industry with 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 production sites across 5 continents. • 2012 s
Slide 36: Enex
Enex • Enex S.A. has a network of 296 service stations, Market Share of Liquid Fuel Sales with 64 convenience stores (December 2012) • Main business activities: ‐ Distribution of fuels through its service Others stations 7% Petrobras ‐ Distribution of fuels to industrial clients and 13% transport se
Slide 37: Enex
Enex • Sales in 2012 reached MUS$2,793, mainly Sales corresponding to fuels, followed by lubricants, (MUS$) asphalts, chemical products, and services. Sales in 2,793 2011 include only seven month’s results, after acquisition at the end of May. During 2013 sales have continued growing. • Net income i
Slide 38: CSAV
CSAV • CSAV, founded in 1872, is one of the oldest • In May 2011 the company started a major shipping companies in the world. restructuring process with the objective of • Its activities include overseas transport of significantly improving its competitive and containerized cargo, liquid and solid b
Slide 39: CSAV
CSAV • In 2012 CSAV’s sales reached MUS$3,432, Sales 28.4% below 2011, as a result of the (MUS$) restructuring plan implemented in 2Q 2011. In 5,215 1Q 2013 sales grew boosted by higher average 4,796 tariffs. 3,432 • Net income in 2012 was a loss of MUS$314, 3,034 improving 74.9% with respect to 201
Slide 40: SM SAAM
SM SAAM • SM SAAM is dedicated to port services and • SM SAAM currently has 11 port terminals and 126 management of port concessions, including three tug boats, being the 2nd largest port operator in main business areas: port terminals, tug boats, Latin America and the 4th largest tug boat and logis
Slide 41: SM SAAM
SM SAAM Sales • In 1Q 2013, SM SAAM’s consolidated sales (MUS$) SAAM SM SAAM reached MUS$121, up 9,3% over the last 448 426 quarter, reflecting improved performance in all business segments. 361 278 • SM SAAM obtained net income of MUS$16 in 1Q 2013, based on higher operational results, boosted by g
Slide 42: Conclusions
Quiñenco Recent Events Financial Main Operating Conclusions Overview Overview Companies 42
Slide 43: 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 • Sound financial • Strong cash levels performance of indicators • Current debt main operating • Well structured leve
Slide 44: Thank you for your attention
Thank you for your attention be. 44 QUINENCO S.A. 44