Quinenco S.A. · BCS:QUINENCO
Quinenco — Investor Presentation (May 2022)
48 slides from Quinenco's investor presentation, May 2022
Slide 1: Investor Presentation May 2022
Investor Presentation May 2022
Slide 2: Agenda: Quiñenco at a Glance
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 3: Ownership Structure
QUIÑENCO AT A GLANCE OWNERSHIP STRUCTURE 83% 17% Luksic Industrial / Financial Minority Shareholders Group Services (Chilean Stock Exchanges) 65% Market Mining Listed on London Capitalization Stock Exchange US$ 4.6 (1) billion (1) Market Capitalization as of April 30, 2022. 3
Slide 4: Quiñenco: Key Figures
QUIÑENCO AT A GLANCE QUIÑENCO: KEY FIGURES Diversified business conglomerate with increasing presence worldwide AGGREGATE ANNUAL ASSETS UNDER US$105 US$45 REVENUES OF MAIN MANAGEMENT bln bln OPERATING COMPANIES 138 70k 3 companies AA /AA+ COUNTRIES JOBS DJSI CHILE CREDIT RATING Quiñenco, through its
Slide 5: Diversified Portfolio of Six Main Operating Companies
QUIÑENCO : INTRODUCTION QUIÑENCO: DIVERSIFIED PORTFOLIO OF SIX MAIN OPERATING COMPANIES % Control as of December 2021 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 51.3% 65.9%2 28.9%3 30.0%4 59.7% 100% US$ 10.1 bln US$ 2.5 bln US$ 4.0 bln US$ 71.1 bln US$ 600 mln US$ 780 mln5 • Leading full
Slide 6: Quiñenco Overview
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 7: One of Chile's Largest Business Conglomerates with Strong Fundamentals
QUIÑENCO OVERVIEW QUIÑENCO: ONE OF CHILE’S LARGEST BUSINESS CONGLOMERATES WITH STRONG FUNDAMENTALS Strong Commitment to Prestigious Controlling Sustainable Progress Shareholders Sound Financial Proven Track Record in Position Value Creation Diversified Chile risk with Dominant Market Positions incre
Slide 8: Locally and Internationally Well-Known and Prestigious Shareholders
QUIÑENCO OVERVIEW Prestigious Controlling LOCALLY AND INTERNATIONALLY WELL-KNOWN Shareholders AND PRESTIGIOUS SHAREHOLDERS First Class Board and Management BOARD OF DIRECTORS SENIOR MANAGEMENT Francisco Pérez M. Alvaro Sapag R. Chief Executive Officer Sustainability Manager Rodrigo Hinzpeter K. Pedr
Slide 9: Over 50 Years of History and Experience
QUIÑENCO OVERVIEW Proven Track Record in OVER 50 YEARS OF HISTORY AND EXPERIENCE Value Creation 1957 • Sociedad Forestal Quiñenco S.A. is created. • Quiñenco carries out MUS$500 capital increase. • CCU reaches 83% ownership of VSPT through tender offer. • Quiñenco increases stake in CSAV to 37.44%.
Slide 10: Value Creation System
QUIÑENCO OVERVIEW Proven Track Record in VALUE CREATION SYSTEM Value Creation Quiñenco has developed a value creation system through the professional management of its investments . . . Acquisition Restructuring Max. Profitability Divest/Retain Acquisitions of companies Restructuring and Develop and
Slide 11: Corporate Level Transactions
QUIÑENCO OVERVIEW Proven Track Record in CORPORATE LEVEL TRANSACTIONS Value Creation . . . which has led to various transactions throughout its history, generating US$1.6 billion in profits over the last 23 years from divestments of US$4.0 billion . . . US$ 869 US$ 693 (plus US$286 mln credit to equ
Slide 12: Strong Growth in NAV
QUIÑENCO OVERVIEW Proven Track Record in STRONG GROWTH IN NAV Value Creation . . . and an average annual compound growth rate of 9% in the net value of Quiñenco’s assets over the past 18 years(1) 7,873 7,366 Quiñenco-NAV(2) 6,858 6,541 6,565 (MUS$) 5,875 6,003 5,789 5,351 5,364 5,137 4,660 3,275 3,0
Slide 13: Favorable Performance of NAV, Share Price & Dividends
QUIÑENCO OVERVIEW Proven Track Record in FAVORABLE PERFORMANCE OF NAV, Value Creation SHARE PRICE & DIVIDENDS NAV(1)/Share Price Trend Dividends Paid as of December 31, 2021 (MCh$) 284,767 50% 4,000 3,742 NAV: US$7.4 bln 30% 50% 40% 30% 3,500 123,624 3,000 72,172 53,071 54,370 63,015 2,500 2,000 1,6
Slide 14: Investment Criteria
QUIÑENCO OVERVIEW Proven Track Record in INVESTMENT CRITERIA Value Creation Based on its investment criteria Brand & consumer Sufficient critical franchise development mass potential Prior operating or Controlling stakes industry experience Access to strategic Growth platform or add- partners / comm
Slide 15: Leading Market Positions
QUIÑENCO OVERVIEW Dominant Market LEADING MARKET POSITIONS Positions The company’s investment strategy allows it to maintain a leading position in all its business areas and product segments Leading beverage company in Chile #2 Cable company worldwide #2 Beer in Argentina Beverage Manufacturing #2 F
Slide 16: Controlling or Influential Interest Along with World Class Alliances
QUIÑENCO OVERVIEW Controlling interest & CONTROLLING OR INFLUENTIAL INTEREST ALONG WITH World Class Partners WORLD CLASS STRATEGIC & COMMERCIAL ALLIANCES Quiñenco partners with world class players to develop its markets and products to take advantage of combined know-how, experience and financial ca
Slide 17: Diversified Investments
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing DIVERSIFIED INVESTMENTS International Presence Becoming one of the most diversified holding companies in Chile . . . Investments by Sector(1) Net Asset Value(2) (NAV) (US$ 7.6 billion as of December 31, 2021) (US$ 7.4 billion as of December 31
Slide 18: Growing and Diversified Revenues
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing GROWING AND DIVERSIFIED REVENUES International Presence . . . achieving diversified revenues recovering in 2021 from the greater impact of the global pandemic in 2020 Consolidated Revenues(1) Aggregate Revenues by Sector(2) (MUS$) (YTD Decembe
Slide 19: Sound Results
QUIÑENCO OVERVIEW Sound Financial SOUND RESULTS Position Sound bottom line results Net Income(1) Net Income(2) (MUS$) (YTD December 31, MUS$) 665.7% 2,241 2,241 1,942 293 227 132 128 249 293 73 214 46 37 129 31 (24) (84) 17 10 Manufacturing Port Services Financial Services Other (3) . Energy Total T
Slide 20: Quiñenco Holding Conservative Financial Structure
QUIÑENCO OVERVIEW Sound Financial QUIÑENCO HOLDING Position CONSERVATIVE FINANCIAL STRUCTURE Long term investments are financed with equity and long term debt in Chilean pesos . . . Assets Liabilities and Equity US$ 8.0 billion as of December 2021 US$ 8.0 billion as of December 2021 Cash Other ST De
Slide 21: Low Financial Corporate Debt
QUIÑENCO OVERVIEW Sound Financial LOW FINANCIAL CORPORATE DEBT Position . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt (MUS$) 1200 0.4 0.35 1000 0.3 800 0.25 600 0.2 0.15 400 0.1 200 0.05 0 0 2017 2018 2019 2020 2021 Net Debt Debt/Capitalization
Slide 22: Diversified and Healthy Dividend Cashflow
QUIÑENCO OVERVIEW Sound Financial DIVERSIFIED AND HEALTHY DIVIDEND CASHFLOW Position . . . to the parent company based on good operating company performance Dividends Composition of Dividends (MUS$) (YTD December 2021) 570 SM SAAM 3% IRSA/CCU 18% LQIF/Banco de Chile 169 11% 142 95 77 CSAV/HL 2017 20
Slide 23: Sustainability Policy
QUIÑENCO OVERVIEW Strong Commitment to SUSTAINABILITY POLICY Sustainable Progress Quiñenco has a strong commitment to sustainable progress as a central part of its business model, based on four strategic pillars LEADERSHIP EXCELLENCE • We are active shareholders with a vocation for controlling and e
Slide 24: Recent Events
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 25: Nexans Completes Acquisition of Colombian Cable Manufacturer Centelsa
RECENT EVENTS NEXANS COMPLETES ACQUISITION OF COLOMBIAN CABLE MANUFACTURER CENTELSA • On September 10, 2021, Nexans announced a share purchase agreement with Mexican group Xignux, to acquire Centelsa, a cable manufacturer in Latin America, based in Colombia. • Centelsa, with more than six decades of
Slide 26: SM SAAM Strengthens Tug Boat Division / Quiñenco Increases Stake
RECENT EVENTS SM SAAM CONTINUES STRENGTHENING TUG BOAT DIVISION / QUIÑENCO INCREASES STAKE IN SM SAAM • On May 6, 2022, SM SAAM (through SAAM Towage Brasil) signed an agreement with Brazilian company Starnav to acquire 17 tug boats currently in operations in Brazil. In addition, 4 tug boats under co
Slide 27: CSAV and Hapag-Lloyd Distribute Significant Dividends
RECENT EVENTS CSAV AND HAPAG-LLOYD DISTRIBUTE SIGNIFICANT DIVIDENDS TO SHAREHOLDERS • For the first time after 10 years, based on Hapag-Lloyd’s strong results in 2020 and the absorption of CSAV’s losses, CSAV distributed US$170 million in dividends to its shareholders in May and June 2021. • Further
Slide 28: Annual Shareholders' Meeting Approves Dividend Proposal of About US$1.3 Billion
RECENT EVENTS QUIÑENCO’S ANNUAL SHAREHOLDERS’ MEETING APPROVES DIVIDEND PROPOSAL OF APPROXIMATELY US$1.3 BILLION ➢ Minimum dividend (30% of net income: ~US$700 million) • Interim dividend of ~US$350 million distributed in November 2021. • Approx. US$350 million payable as of May 2nd, 2022. ➢ Additio
Slide 29: Global COVID-19 Pandemic
RECENT EVENTS GLOBAL COVID-19 PANDEMIC In response to the impact of the global pandemic, group companies have continued focusing on: Protecting the health and safety of employees and supporting clients. Operational continuity in order to maintain chain of goods and services. Preserving financial liq
Slide 30: Conclusions
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 31: Outlook
CONCLUSIONS OUTLOOK FACTORS THAT CONTRIBUTE TO QUIÑENCO’S ABILITY TO PURSUE AND UNDERTAKE NEW INVESTMENT OPPORTUNITIES PORTFOLIO HEALTHY STRONG CASH OPTIMIZATION FINANCIAL STRUCTURE POSITION • Good performance of main • Sound financial indicators • Strong cash levels operating companies • Well struc
Slide 32: Thank You for Your Attention
E QUINENCO S.A. a= ~ THANK YOU FOR YOUR ATTENTION
Slide 33: Appendix: Main Operating Companies
APPENDIX MAIN OPERATING COMPANIES
Slide 34: Banco de Chile: Ownership Structure
MAIN OPERATING COMPANIES • Established in 1893, Banco de Chile has a highly recognized name in Chile. • One of the most profitable banks in terms of return on assets and equity. • Assets of US$65 billion. • Over 12,200 employees • Nationwide network of 272 branches and 1,761 ATMs. • Traded on the NY
Slide 35: Banco de Chile Results
Contribution of Financial Services to MAIN OPERATING COMPANIES Net income in 2021 boosted by higher revenues, Quiñenco’s Net Income 227 largely due to higher inflation, and lower loan loss 132 provisions. Income tax, on the other hand, increased. 2020 2021 ROAE Operating Revenues 15.0% (MUS$) 2,640
Slide 36: CCU: Ownership Structure
MAIN OPERATING COMPANIES • Founded in 1850, CCU is a multi-category branded beverage company operating in Chile, Argentina, Bolivia, Colombia, Paraguay and Uruguay, with an extensive wine export business to more than 80 countries. • Assets of US$3.4 billion. • Over 9,000 employees. • 33 beverage fac
Slide 37: CCU Results
Contribution of IRSA in Other to MAIN OPERATING COMPANIES Strong results in 2021 based on good performance across Quiñenco’s Net Income all operating segments, and especially the Chile and 69 33 International Business segments, reflecting growth in sales volumes, revenue management and cost efficien
Slide 38: Invexans: Ownership Structure
MAIN OPERATING COMPANIES • Invexans’ main asset until early 2020 was its stake in Nexans, a leading cable manufacturer with worldwide presence, based in France. Since April 2020, Invexans also holds 100% ownership of Enex, a fuel distribution company with presence in Chile, the USA and Paraguay. • A
Slide 39: Invexans Results
Contribution of Manufacturing to Contribution of Energy to Quiñenco’s MAIN OPERATING COMPANIES Quiñenco’s Net Income 46 Net Income 73 17 10 2020 2021 2020 2021 Invexans’ results reflect positive performance of both 1,151.8% its main assets, Nexans and Enex, during the year, Operating Income (Loss) r
Slide 40: Nexans: Sales by Key End Markets
Contribution of Manufacturing to Nexans more than doubled its net income in 2021, MAIN OPERATING COMPANIES based on improved operating performance across the Quiñenco’s Net Income 46 board, a positive core exposure effect, and lower 17 restructuring expenses. 2020 2021 SALES* BY KEY-END MARKETS • Ne
Slide 41: Enex: Ownership Structure
MAIN OPERATING COMPANIES • Enex S.A. has a network of 445 service stations, with 185 convenience stores in Chile, 42 travel centers in the USA and 55 service stations in Paraguay. • Main business activities: ➢ Distribution of fuels through its service stations. ➢ Distribution of fuels to industrial
Slide 42: Enex Results
Contribution of Energy to Quiñenco’s MAIN OPERATING COMPANIES Enex’s positive evolution in 2021 reflects a recovery in Net Income 73 sales volumes, particularly in the service station segment as restrictions related to the pandemic 10 eased, and inventory revaluation gains. 2020 2021 Sales (MUS$) 37
Slide 43: CSAV: Ownership Structure
MAIN OPERATING COMPANIES • CSAV, founded in 1872, is one of the oldest shipping companies in the world. • Its activities include overseas transport of containerized cargo through its investment in Hapag-Lloyd. • Total assets as of December 2021 were US$6.0 billion. • In November 2015 Hapag-Lloyd car
Slide 44: CSAV Results
CSAV’s outstanding results in 2021 reflect its share in Contribution of Transport to MAIN OPERATING COMPANIES Hapag-Lloyd’s performance during the year. At the Quiñenco’s Net Income 1,942 corporate level, CSAV reported higher administrative 128 expenses. 2020 2021 Operating Income (Loss) (MUS$) 4 1
Slide 45: Hapag-Lloyd: Transported Volume by Trade
Hapag-Lloyd posted a substantial jump in results in 2021. Contribution of Transport to MAIN OPERATING COMPANIES Strong demand for exports from Asia and sustained Quiñenco’s Net Income 1,942 disruptions in global supply chains, led to an increase of 128 average freight rates in the industry - of 80%
Slide 46: SM SAAM: Ownership Structure
MAIN OPERATING COMPANIES • SM SAAM is dedicated to port services and management of port concessions, including three main business areas: port terminals, tug boats, and logistics. • SM SAAM has a presence in 14 countries and 88 ports in America. • SM SAAM currently operates 10 port terminals and a f
Slide 47: SM SAAM Results
Contribution of Port Services to SM SAAM’s positive results in 2021 are based on its three MAIN OPERATING COMPANIES business divisions, benefitting from greater activity in Quiñenco’s Net Income 37 31 foreign trade, its increased stake in Aerosan and the acquisition of Intertug, offsetting non-recur
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