Quinenco S.A. · BCS:QUINENCO
Quinenco — Investor Presentation (March 2013)
44 slides from Quinenco's investor presentation, March 2013
Slide 1: Company Presentation / March 2013
Company Presentation / March 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$49 billion in assets under management • Companies managed by Quiñenco generated sales revenue of US$12 billion in 2011 • The Quiñenco group of companies employs around 34,500 people in Chile and abroad 3
Slide 4: Ownership Structure
Ownership Structure Minority Shareholders (Chilean Stock Exchanges) 81% 19% Mining Industrial / Financial Services Market Capitalization US$ 4.6(1) billion (1) Market Capitalization as of March 15, 2013 4
Slide 5: Quiñenco: Main Operating Companies
Quiñenco: Main Operating Companies % Control as of December 2012 59.9% 66.1% 55.4% (2) 37.4% 37.4% 100% Mkt.Cap(1): Mkt.Cap(1): Mkt.Cap(1): Mkt.Cap(1): Mkt.Cap(1): US$ 701 mln US$ 14.9 bln US$ 5.2 bln US$ 304 mln US$ 0.9 bln US$ 1.1 bln • 1st bank in Chile • No.1 Chilean • Manufacturer of • Largest
Slide 6: First Class Board and Management
First Class Board and Management Board of Directors Guillermo Luksic Craig Andrónico Luksic Craig Jean‐Paul Luksic Fontbona Fernando Cañas Berkowitz Gonzalo Menéndez Duque Hernán Büchi Buc Matko Koljatic Maroevic Chairman Vice Chairman Director 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 100% 2008 Banco de Chile and Citibank Chile created. of mobile phone company, Startel, to merge on January 1st. CTC. Historical transaction between Madeco and Fren
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$2.0 billion in profits over the last 15 years from divestments of US$4.9 bln 2,089 1,125 874 * 71 45 Telecom Retail Real estate/Hotels Beverage & Food Utility Financial Services Total ‐12
Slide 13: Leading Market Positions
Leading Market Positions The company’s investment strategy allows it to maintain a leading position in all of its business areas and product segments: Business Industry Product Ranking(1) Market Share (1) Loans 1 19% Financial Services Deposits 1 23% Beer Chile 1 80% Beer Argentina 2 23% Carbonated
Slide 14: Diversified Investments
Diversified Investments Quiñenco is one of the most diversified holding companies in Chile. During its history it has invested in sectors where it has a recognized track‐record and experience in the industry. Investments by Sector Net Asset Value(1) (NAV) (US$ 4.6 billion as of September 30, 2012) (
Slide 15: NAV & Share Price Trend
NAV & Share Price Trend NAV/Share Price Trend as of September 30, 2012 3.000 2.510 2.500 2.330 2.239 2.194 2.009 2.000 1.500 1.538 1.379 1.315 1.000 1.187 1.250 500 0 Sep‐ 11 Dec‐ 11 Mar‐ 12 Jun‐ 12 Sep‐ 12 NAV per share (CH$) Share price (CH$) Note: Market information and book values as of Septembe
Slide 16: Diversified Revenues and Results (2011)
Diversified Revenues and Results (2011) Quiñenco has achieved diversified revenues and results, thus generating stable cash flows Aggregate Revenues by Sector (1) Net Income (2) (YTD December 2011) (YTD December 2011, MUS$) 185.3 169.5 Financial Services 20% Transport 43% Beverage & Food 9.0 5.8 15%
Slide 17: Diversified Revenues and Results (YTD September 2012)
Diversified Revenues and Results (YTD September 2012) Quiñenco has achieved diversified revenues and results, thus generating stable cash flows Aggregate Revenues by Sector (1) Net Income (2) (YTD September 2012) (YTD September 2012, MUS$) Port & Shipping Serv. 4% Financial Services 22% 186.6 159.5
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 Madeco (Millions of US$) (YTD 2% March 2012) CCU 21% 322 225 227 165 101 Banco de Chile 54% 2008 2009 2010 2011 YTD Sep 2012 Banchile Vida 23% Other Banc
Slide 19: Quiñenco – Strong Fundamentals
Quiñenco – Strong Fundamentals Dominant position Quiñenco’s companies are leaders in their respective markets. in its markets Proven track record in value Holding has proven track record in value creation by evidenced by sale of investments creation for approximately US$ 4.9 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 37.44% of CSAV and SAAM Spin-off carried out
Quiñenco reaches 37.44% of CSAV and SAAM Spin‐off carried out • January‐February 2012: Quiñenco subscribed US$547 million in CSAV’s capital increase of US$1.2 billion. Thus, Quiñenco’s stake increased to 37.44%. • As of February 15, SAAM (cargo and shipping business) spin‐off from CSAV is carried ou
Slide 22: 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 23: Quiñenco raises funds through debt and equity
Quiñenco raises funds through debt and equity Bond Issuance • During January 2012 Quiñenco successfully placed UF 4,650,000 (US$200 million) in bonds in the local market. This issuance is in addition to UF7,000,000 (US$330 million) placed during 2011, also in the local market. Capital Increase • In
Slide 24: Financial Overview
Quiñenco Recent Events Financial Overview Main Operating Conclusions Overview Companies 24
Slide 25: Sound Results
Sound Results Good operating company performance allows a strong dividend flow to the parent company Revenues(1) Net Income(2) (MUS$) (MUS$) 4,552 616 4,346 532 3,104 2,561 2,664 2,232 328 186 179 187 2008 2009 2010 2011 YTD Sep YTD Sep 2008 2009 2010 2011 YTD Sep YTD Sep 2011 2012 2011 2012 Quiñenc
Slide 26: Quiñenco Holding: Conservative Financial Structure
Quiñenco Holding: Conservative Financial Structure Long term investments are financed with equity and long term debt in Chilean pesos Assets Liabilities and Equity US$ 4.7 billion as of September 2012 US$ 4.7 billion as of September 2012 Other ST Debt Cash 1% 1% 15% Other Liabilities 2% LT Debt 13%
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$ 465 333 133 134 ‐1.154 2008 2009 2010 2011 Sep‐12 Sept MUS$ 2008 2009 2010 2011 2012 Debt 446 352 361 804(1) 824 Cash ‐113 ‐219 ‐1,515 ‐338 ‐690 Net Debt 333 133 ‐
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 441 branches and 1,987 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 ROAE • In 2012 the Bank’s net operating revenues grew 5.0%, based on higher loans to customers and a higher balance of demand deposits and current accounts, mitigated by higher loan 26.6% 27.0% provisions. 23.9% 22.7% 23.2% • Net income in 2012 was MUS$971, 8.6% above 2011 results, th
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 EBITDA by Business Segment December 2012 • Sales grew by 10.9% in 2012 to MUS$2,241 • Net income in 2012 reached MUS$238, 6.8% Spirits Other 4% 5% below the previous period, mainly due to a Wine non‐recurring gain reported in 2011, despite 8% positive operating performance of the business Beer C
Slide 33: Madeco
Madeco • Historic agreement with French cable producer Nexans • Founded in 1944, Madeco is one of the leading closed in Sept. 2008. Madeco is now the main producers in the region of flexible packaging, and shareholder of Nexans with three directors on its a relevant actor in brass mills and profiles
Slide 34: Madeco
Madeco Sales • Sales in 2012 decreased by 3.2% to MUS$423 (MUS$) mainly due to lower sales of brass mills, partially compensated by higher sales of the flexible packaging and profiles units. • Madeco obtained net income of MUS$53 in 384 418 437 423 316 2012 mainly reflecting negative goodwill due to
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 292 service stations, Market Share of Liquid Fuel Sales with 64 convenience stores (December 2011) • Main business activities: Others ‐ Distribution of fuels through its service Petrobras 5% stations 12% ‐ Distribution of fuels to industrial clients and transport se
Slide 37: Enex
Enex • Sales as of September 2012 reached MUS$2,090, Sales mainly corresponding to fuels, followed by (MUS$) lubricants, asphalts, chemical products, and services. Sales in 2011 include only four month’s 2.090 results, after acquisition at the end of May. • Net income as of September 2012 amounted t
Slide 38: CSAV
CSAV • CSAV, founded in 1872, is one of the oldest • Total assets as of December 2012 of US$ 2.5 shipping companies in the world. billon. • Its activities include overseas transport of • In May 2011 the company started a major containerized cargo, liquid and solid bulk, restructuring process with th
Slide 39: CSAV
CSAV Sales • In 2012 CSAV’s sales reached MUS$3,432, (MUS$) 28.4% below 2011, as a result of the restructuring plan implemented in 2Q 2011 4,887 5,215 4,796 • Net income in 2012 was a loss of MUS$314, 3,034 3,432 improving 74.9% with respect to 2011. • This result includes the net loss from disconti
Slide 40: SAAM
SAAM • SAAM is dedicated to port services and • SAAM currently has 10 port terminals and 125 tug management of port concessions, including three boats, being the 2nd largest port operator in Latin main business areas: port terminals, tug boats, America and the 4th largest tug boat operator in and lo
Slide 41: SAAM
SAAM Sales • Sales in 2012 increased by 5.2% to MUS$448 (MUS$) mainly due to improved performance of all 448 426 business segments. 361 • SAAM obtained net income of MUS$62 in 278 2012, mainly reflecting higher operational results, partially compensated by a slightly lower non‐operational result. 20
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
Gees wooo wooo mw meh Thank you for your attention = |. 448 QUINENCO S.A. 44