Sonda S.a. · BCS:SONDA
Sonda — Investor Presentation (May 2008)
27 slides from Sonda's investor presentation, May 27, 2008
Slide 1: Welcome to SONDA
MBA Students and Faculty Robert H. Smith School of Business University of Maryland Welcome to SONDA Mr. Rodrigo A. Peña Investor Relations Officer May 27, 2008 1
Slide 2: Agenda
AGENDA SONDA in a Snapshot IT Industry in Latin America SONDA Business Strategy Positive Results 2
Slide 3: SONDA in a Snapshot
SONDA in a Snapshot Largest Latin American IT Services Network Founded in 1974, 33 years of experience Regionalization process started in 1984 A public company since 2006 US$ 1.2 billion in Market Capitalization US$ 540 million in Revenues in 2007 US$ 98 million in EBITDA in 2007 10,000 people in 9
Slide 4: SONDA in a Snapshot
SONDA in a Snapshot Leading regional IT Services provider with a full offer in the main segments of the IT industry The only LatAm-controlled company with an extensive regional network 4
Slide 5: Agenda
AGENDA SONDA in a Snapshot IT Industry in Latin America SONDA Business Strategy Positive Results 5
Slide 6: Information Technology Industry
Information Technology Industry Segments US$1,296 Huge impact on people, organizations and society Billions in 2007 Change dramatically the IT Services way to do things 2.4% The only constant is a World GDP permanent change Applications Main IT providers Platforms 6
Slide 7: Latin America, the world's fastest growing region
Latin America, the world’s fastest growing region IT Spending in Latin América (US$ Millions) Brazil México Colombia Chile Others 21% Others 75,713 70,017 63,765 5% Chile 6% 2008E 46% Brazil 12.8 % 41,472 51,107 57,659 Colombia 2008 Growth 22% Mexico 2006 2007 2008E 2009E 2010E 2011E Source: IDC Har
Slide 8: Latin America, the world's fastest growing region
Latin America, the world’s fastest growing region There is a significant GAP in IT Investment as a percentage of GDP between OCDE countries and +12.8% Latin American countries CAGR in Latin America 2007-2011 IT Investment - Year 2007 CAGR 2007-2011 12.4% 12.8% 5.6% 4.6% 4.7% 1.6% Western North Centr
Slide 9: Competitive Landscape in Latin America – Players
Competitive Landscape in Latin America – Players Main incumbents New entrants Local vs. regional Spaniards Indians SONDA begins its regional expansion in 1984 and today it has the largest Latin American Regional IT Services network Recent attempts from local providers to expand across the region, es
Slide 10: Competitive Landscape – IT Services spectrum
Competitive Landscape – IT Services spectrum Strategic Consulting IT Consulting BPO / ASP Systems Integration IT Infrastructure Business Solutions Product Engineering Software Engineering Application Maintenance Application Development More focused Less focused 10
Slide 11: Agenda
AGENDA SONDA in a Snapshot IT Industry in Latin America SONDA Business Strategy Positive Results 11
Slide 12: Leading regional Full IT Services provider
Leading regional Full IT Services provider Leader in Systems Integration projects, Technical Support and IT Outsourcing (26% share in Chile) Positioned in the corporate market as an independent full IT services provider Vast experience delivering large-scale projects with important social and econom
Slide 13: Independent Full IT Services provider
Independent Full IT Services provider IT Services: growth with high margins PETROBRAS, Help Electronic Health Traffic Control BANAMEX, IT support Desk Services and Bonuses Issuance System for web site and IT support branches Applications: high product repeatability Platforms: cutting edge technology
Slide 14: Solid Track Record
Solid Track Record October 1974 1975-1980 1981-1985 1986-1990 1991-1995 1996-2000 2001-2008 Brazil (2002) Official Digital Perú(1984) Argentina (1986) Uruguay (1994) Colombia (2000) SONDA is Equipment Corp. Costa Rica (2003) Applications for Ecuador (1990) Check Clearing Launch of FIN 700 founded in
Slide 15: Strong Customer Base
Strong Customer Base Our customers are leading companies in their industries More than 5,000 throughout Latin America 15
Slide 16: Strategic Investment plan
Strategic Investment plan •SONDA has set the basis for a successful regional expansion •The groundwork performed throughout the region has enabled the Company to acquire a knowledge of Latin American markets and players, develop a successful M&A and integration strategy, and execute mega-integration
Slide 17: Recent Acquisitions
Recent Acquisitions The PROCWORK acquisition places SONDA as one of the main IT Services providers in Brazil, the largest IT market in LatAm, and as the third largest SAP PROCWORK 100 % integrator in Latin America Acquisition of RED COLOMBIA is complementary to SONDA’s existing RED Top 5 IT Services
Slide 18: Agenda
AGENDA SONDA in a Snapshot IT Industry in Latin America SONDA Business Strategy Positive Results 18
Slide 19: Strengths and pillars for profitable growth
Strengths and pillars for profitable growth Learning curve gained through Regional experience, expansion allows know-how for synergy gains, transfer, project scale and scope 33years repeatability economies Large scale Brand recognition OF EXPERIENCE contracts with high and leading position value add
Slide 20: Higher value added businesses become more relevant
Higher value added businesses become more relevant Revenue breakdown by Business line 2003 2007 26.2% 10.3% 9.2% Market Share Applications 36.6% Applications 27.8% In IT Services Platforms Platforms In Chile SONDA 53.1% 63.0% IT Services IT Services 20
Slide 21: Businesses outside Chile become more important
Businesses outside Chile become more important Revenue breakdown by Region 2003 2007 +50% 13.1% Revenues 0% 6.6% OPLA Mexico come from Mexico 27.5% 8.1% outside Chile Brazil OPLA 13.7% Brazil SONDA 73.2% 57.8% Chile Chile 21
Slide 22: New deals enhance revenue backlog
New deals enhance revenue backlog 10% 439.3 OPLA +65.0% 134.3 11% 266.5 México 35% Chile 102.7 265.8 44% 151.1 Brazil 39.2 12.7 2007 Platforms 2006 Applications 2007 IT Services US$ millions 12% 154.5 OPLA 34.9 +140.7% 8% México 26% 64.2 Chile 105.2 24.1 38.5 54% 1.6 14.8 Brazil 1Q08 1Q07 1Q08 Platf
Slide 23: Systematic revenue growth and improved margins
Systematic revenue growth and improved margins Consolidated revenues (US$ thousands) Operating income (US$ thousands) CAGR=14.6% 539,543 CAGR=24.8% 61,889 33.7% 40.8% 43,964 403,674 39,328 402,103 358,571 31,862 11.5% 10.9% 9.8% 8.9% 2004 2005 2006 2007 2004 2005 2006 2007 Operating margin Net Incom
Slide 24: Solid financial position
Solid financial position All figures are converted to US dollars using the year-end exchange rate of Dec 31, 2007, and considering a constant Chilean pesos base. 24
Slide 25: Favorable perspectives
Favorable perspectives •Double-digit organic growth in ’08 •New positioning in Brazil reinforces SONDA’s regional •Incremental revenues coming after footprint and widens its Procwork’s acquisition customer base •New contracts support a solid revenue base for next years •Margin improvements in Brazil
Slide 26: Favorable perspectives
Favorable perspectives Industry High growth rates In main regional markets Footprint Efficiency Synergies lead to better margins Investment plan moving forward Growth 26
Slide 27: Tel (56-2) 657 50 00 Fax (56-2) 657 54 10 Teatinos 500
Tel (56-2) 657 50 00 Fax (56-2) 657 54 10 Teatinos 500 Santiago, CHILE www.SONDA.com 27