Quinenco S.a. · BCS:QUINENCO
Quinenco — Investor Presentation (March 2024)
50 slides from Quinenco's investor presentation, March 2024
Slide 1: Investor Presentation March 2024
Investor Presentation March 2024
Slide 2: Disclaimer
DISCLAIMER This presentation includes information on Quiñenco S.A. and related companies. Said information is summarized and does not intend to be complete, nor should it be considered as advice for potential investors. No representation or warranty, express or implied, is made as to the accuracy, o
Slide 3: Agenda
• QUIÑENCO AT A GLANCE • QUIÑENCO OVERVIEW • RECENT EVENTS • CONCLUSIONS 3
Slide 4: Quiñenco at a Glance
QUIÑENCO AT A GLANCE OWNERSHIP STRUCTURE 65% 83% 17% Minority Shareholders (Chilean Stock Exchanges) Mining Listed on London Stock Exchange Holding Industrial / Financial Services 136 74,700 US$ 122 bln Countries(1) Jobs(1) Assets under management (1) US$ 7.0 bln US$ 5.7 bln AA+/AA+ Net Asset Value
Slide 5: Diversified Portfolio of Six Main Operating Companies
QUIÑENCO: INTRODUCTION DIVERSIFIED PORTFOLIO OF SIX MAIN OPERATING COMPANIES % Control as of September 2023 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1, 3 Book Value4 51.3% 65.9% 19.3% 30.0%2 61.0% 100% US$ 11.7 bln US$ 2.1 bln US$4.5 bln US$25.2 bln US$1.1 bln US$1.0 bln • Leading full services ba
Slide 6: Quiñenco Overview
• QUIÑENCO AT A GLANCE • QUIÑENCO OVERVIEW • RECENT EVENTS • CONCLUSIONS 6
Slide 7: One of Chile's Largest Business Conglomerates with Strong Fundamentals
QUIÑENCO OVERVIEW 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 increasing International
Slide 8: First Class Board and Management
QUIÑENCO OVERVIEW FIRST CLASS BOARD AND MANAGEMENT BOARD OF DIRECTORS Pablo Granifo L. Jean-Paul Luksic F. Paola Luksic F. Andrónico Luksic L. Nicolás Luksic P. Hernán Büchi B. Matko Koljatic M. Juan Carlos Jobet E. Chairman Vice Chairman Director Director Director Director Director Director SENIOR
Slide 9: Value Creation System
QUIÑENCO OVERVIEW VALUE CREATION SYSTEM Quiñenco has developed a value creation system through the professional management of its investments, which has led to various transactions throughout its history, generating US$1.9 billion in profits over the last 26 years from divestments of US$4.7 billion
Slide 10: Strong Growth in NAV
QUIÑENCO OVERVIEW STRONG GROWTH IN NAV … and an average annual compound growth rate of 9% in the net value of Quiñenco’s assets over the past 19 years(1) Quiñenco-NAV(2) (3) 7,873 7,366 7,788 7,047 (MUS$) 6,858 6,541 6,565 5,789 5,875 6,003 5,351 5,364 5,137 4,660 3,275 3,071 2,721 1,989 2,028 2,142
Slide 11: Favorable Performance of NAV, Share Price & Dividends
QUIÑENCO OVERVIEW FAVORABLE PERFORMANCE OF NAV, SHARE PRICE & DIVIDENDS Dividends Paid NAV(1)/Share Price Trend (MCh$) as of September 30, 2023 56% 30% 1,063,492 1,060,597 4,500 NAV: US$7.0 bln 40% 30% 50% 4,000 $3,796 3,500 72,172 63,015 123,624 3,000 $2,630 2,500 2019 2020 2021 2022 2023 2,000 Per
Slide 12: Investment Criteria
QUIÑENCO OVERVIEW INVESTMENT CRITERIA Brand & consumer Competitive franchise development advantages and potential sufficient critical mass Controlling stakes or Prior operating significant influence or industry experience Access to strategic Growth platform or partners / commercial add-on acquisitio
Slide 13: Leading Market Positions
QUIÑENCO OVERVIEW LEADING MARKET POSITIONS The company’s investment strategy allows it to maintain a leading position in all its business areas and product segments Beverage Leading beverage company in Chile Financial #2 Beer in Argentina #2 Loans in Chile #1 Deposits in Chile Energy Transport #2 Fu
Slide 14: Controlling or Influential Interest with World Class Alliances
QUIÑENCO OVERVIEW CONTROLLING OR INFLUENTIAL INTEREST ALONG WITH WORLD CLASS STRATEGIC & COMMERCIAL ALLIANCES Quiñenco partners with world class players to develop its markets and products to take advantage of combined know- how, experience and financial capacity Beverage Financial Energy Transport
Slide 15: Diversified Investments
QUIÑENCO OVERVIEW DIVERSIFIED INVESTMENTS Becoming one of the most diversified holding companies in Chile . . . Investments by Sector(1) Net Asset Value(2) (NAV) (as of September 30, 2023) (as of September 30, 2023) (Percentages calculated over gross assets) Cash Port Services Other 10% Financial 7%
Slide 16: Growing and Diversified Revenues
QUIÑENCO OVERVIEW GROWING AND DIVERSIFIED REVENUES . . . achieving diversified and growing revenues . . . Consolidated Revenues(1) Aggregate Revenues by Sector(2) (MUS$) (YTD September 2023) 8,942 Port Services Financial 1% Services 8% 3.5% Beverage 6,702 6,476 7% 6,050 5,538 5,045 Manufacturing 20%
Slide 17: Sound Results
QUIÑENCO OVERVIEW SOUND RESULTS . . . and sound bottom line results Net Income(1) (MUS$) 3,947 ‐73.3% 3,033 Sep-22 Sep-23 2,114 3,033 2,769 810 810 235 276 286 236 245 72 25 153 15 151 2019 2020 2021 2022 YTD Sep-22 YTD Sep-23 Energy Total Financial Transport Services (109) Other(2) Port Note: Figur
Slide 18: Quiñenco Holding Conservative Financial Structure
QUIÑENCO OVERVIEW QUIÑENCO HOLDING CONSERVATIVE FINANCIAL STRUCTURE Long term investments are financed with equity and long term debt in Chilean pesos . . . Assets Liabilities and Equity US$10.9 billion as of September 2023 US$10.9 billion as of September 2023 Cash LT Debt ST Debt 9% Other 13% 1% 2%
Slide 19: Low Financial Corporate Debt
QUIÑENCO OVERVIEW LOW FINANCIAL CORPORATE DEBT . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt (MUS$) 1,200 0.4 1,000 0.35 0.3 800 0.25 600 0.2 400 0.15 0.1 200 0.05 - 0 2019 2020 2021 2022 Sep-23 Net Debt Debt/Capitalization(1) MUS$ 2019 2020 202
Slide 20: Diversified and Healthy Dividend Cashflow
QUIÑENCO OVERVIEW DIVERSIFIED AND HEALTHY DIVIDEND CASHFLOW . . . to the parent company based on good operating company performance Dividends Composition of Dividends (MUS$) (YTD Dec 2023) NEXANS SM SAAM Banchile Vida IRSA/CCU LQIF/Banco de Chile CSAV/HL Nexans Other 1% SM SAAM Other 1,302 2% 0% LQI
Slide 21: Sustainability Policy
QUIÑENCO OVERVIEW SUSTAINABILITY POLICY Quiñenco has a strong commitment to sustainable progress as a central part of its business model, based on four strategic pillars. SUSTAINABLE HUMAN DEVELOPMENT EXCELLENCE PEOPLE COMMITMENT TO THE LEADERSHIP COUNTRY We work for progress, open to the world to c
Slide 22: Recent Events
• QUIÑENCO AT A GLANCE • QUIÑENCO OVERVIEW • RECENT EVENTS • CONCLUSIONS 22
Slide 23: Andrónico Luksic Resigned from Boards as of Year-End 2023
RECENT EVENTS ANDRÓNICO LUKSIC RESIGNED FROM BOARDS OF QUIÑENCO AND OTHER GROUP COMPANIES AS OF YEAR-END 2023 • On September 28, 2023, Andrónico Luksic announced his decision to retire from the Boards of Quiñenco, CCU, Banco de Chile, LQIF, CSAV and Invexans, effective as of December 29, 2023. • His
Slide 24: Changes in Corporate Governance Effective December 29, 2023
RECENT EVENTS CHANGES IN CORPORATE GOVERNANCE EFFECTIVE AS OF DECEMBER 29, 2023 Pablo Granifo L. Paola Luksic F. Francisco Pérez M. Appointed Chairman of the Appointed as new Appointed Chairman of CCU Board of Quiñenco, and Director of Quiñenco and LQIF, and Vice Chairman joined the board of CSAV of
Slide 25: SM SAAM and Hapag-Lloyd Materialize US$1 Billion Transaction
RECENT EVENTS SM SAAM AND HAPAG-LLOYD MATERIALIZE US$1 BILLION TRANSACTION INVOLVING PORT TERMINALS AND LAND LOGISTICS • On August 1, 2023, following necessary regulatory approvals, the transaction agreed between SM SAAM and Hapag-Lloyd in October 2022 was materialized. Thus, SM SAAM sold its entire
Slide 26: SM SAAM Continues Strengthening Tug Boat Division
RECENT EVENTS SM SAAM CONTINUES STRENGTHENING TUG BOAT DIVISION • On May 3, 2023, SM SAAM (through SAAM Towage Brasil) completed the acquisition of 21 tug boats from Brazilian company Starnav, in accordance with the agreement signed a year before. The transaction includes 19 tug boats in operation a
Slide 27: SM SAAM Announces Acquisition of Air Cargo Logistics Company in Ecuador
RECENT EVENTS SM SAAM ANNOUNCES ACQUISITION OF AIR CARGO LOGISTICS COMPANY IN ECUADOR • On October 17, 2023, May 3, 2023, SM SAAM (through Aerosan) announced the acquisition of the air cargo logistics company Pertraly in Ecuador. • The acquisition will allow Aerosan to double its operations in Ecuad
Slide 28: Nexans Completes Telecom Divestment and Reka Cables Acquisition
RECENT EVENTS NEXANS COMPLETES DIVESTMENT OF TELECOM SYSTEMS BUSINESS AND ACQUISITION OF REKA CABLES IN THE NORDICS • On October 31, 2023, Nexans announced the completion of the sale of its telecom systems business to Syntagma Capital, a Belgium-based private equity fund. This transaction marks Nexa
Slide 29: Invexans Sells 1/3 of Its Stake in Nexans
RECENT EVENTS INVEXANS SELLS 1/3 OF ITS STAKE IN NEXANS • On April 5, 2023, Invexans Limited, indirect subsidiary of Quiñenco, successfully completed the sale of 4,203,638 shares of Nexans, through an accelerated book-building offering, at a price of €80 per share. • Thus, the transaction totaled US
Slide 30: Enex Opens New Road Ranger Travel Center in Texas
RECENT EVENTS ENEX OPENS NEW ROAD RANGER TRAVEL CENTER IN TEXAS, USA, EXPANDING ITS PRESENCE IN THAT COUNTRY • During 2023, Road Ranger, Enex’s network of highway travel centers in the USA inaugurated four new stations (three in Texas and one in Missouri), thus increasing its network to a total of 4
Slide 31: CCU and Enex Reach Full Ownership of Subsidiaries in Paraguay
RECENT EVENTS CCU AND ENEX REACH FULL OWNERSHIP OF SUBSIDIARIES IN PARAGUAY, FOLLOWING EXIT OF BANCO SUDAMERIS • On February 20, 2024, CCU and Enex reached 100% ownership of their respective subsidiaries in Paraguay, upon the exercise on behalf of Banco Sudameris of its put options, as contemplated
Slide 32: Quiñenco Places Bonds and Distributes US$1.3 Billion in Dividends
RECENT EVENTS QUIÑENCO PLACES BONDS ON LOCAL MARKET AND DISTRIBUTES US$1.3 BILLION IN DIVIDENDS • On January 18, 2023, Quiñenco placed UF 5 million, equivalent to approximately US$215 million, in bonds on the local market. The series was issued with a maturity of 28 years and a 25-year grace period,
Slide 33: Conclusions
• QUIÑENCO AT A GLANCE • QUIÑENCO OVERVIEW • RECENT EVENTS • CONCLUSIONS 33
Slide 34: Outlook
CONCLUSIONS OUTLOOK SOUND CASH POSITION • Strong cash levels • Conservative financing policy FACTORS THAT CONTRIBUTE TO QUIÑENCO’S ABILITY TO PURSUE AND UNDERTAKE NEW INVESTMENT HEALTHY FINANCIAL STRUCTURE OPPORTUNITIES • Sound financial indicators • Well structured Balance Sheet • AA+/AA+ local rat
Slide 35: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION 35
Slide 36: Appendix: Main Operating Companies
APPENDIX MAIN OPERATING COMPANIES 36
Slide 37: 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$65 billion. • Over 12,500 employees. • Nationwide network of 266 branches and 1,810 ATMs. • Traded on the N
Slide 38: Banco de Chile Results
Contribution of Financial Services Net income as of September 2023 impacted by lower non-customer to Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES income and higher operating expenses, partly compensated by a decrease 286 236 in expected credit losses, reflecting no additional provisions in
Slide 39: 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$4.2 billion. • Over 10,500 employees. • 35 beverage fa
Slide 40: CCU Results
Contribution of IRSA in Other to YTD September 2023 results down, despite better operational results lead Quiñenco´s Net Income (MUS$) MAIN OPERATING COMPANIES by the Chile and International Business segments, due to lower non operating results, impacted mostly by exchange rate differences in 15 20
Slide 41: Nexans Overview
MAIN OPERATING COMPANIES • Nexans is a worldwide leader in the cable industry with an industrial footprint in 42 countries and commercial activities worldwide, after over a century of progress. • Headquartered in Paris, France, Nexans produces cables and cabling systems, constantly innovating its pr
Slide 42: Nexans Results
Contribution of Manufacturing to Nexans’ net income in 1H 2023 decreased 33%, despite improved Quiñenco´s Net Income (MUS$) MAIN OPERATING COMPANIES operating performance that was boosted by the industry, distribution and 60 usages segments, due to lower non-operating results. The drop in 24 Nexans¿
Slide 43: Enex: Ownership Structure
MAIN OPERATING COMPANIES • Enex S.A. has a network of 447 service stations, with 208 convenience stores in Chile, 45 travel centers in the USA and 75 service stations in Paraguay. • Main business activities: Distribution of fuels through its service stations. Distribution of fuels to industrial
Slide 44: Enex Results
Contribution of Energy to Enex’s contribution decreased by 65.2% YTD September 2023, mainly due Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES to a negative impact of inventory revaluation and higher operating 72 expenses, the latter affected by inflation and transport costs, despite 25 growt
Slide 45: 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 2022 were US$10.3 billion. • In November 2015 Hapag-Lloyd ca
Slide 46: CSAV Results
Contribution of Transport to CSAV’s YTD September 2023 results mainly reflect its share in Hapag- Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES Lloyd’s lower performance during the period in a more normalized industry 2,769 context, along with income tax of US$698 million, related to the use
Slide 47: Hapag-Lloyd Overview and Results
Contribution of Transport to Hapag-Lloyd´s results YTD September 2023 down by 76.7%. In a scenario of Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES weaker demand for transport in containers since the end of 2022, and a 2,769 normalization of global supply chains, Hapag-Lloyd’s average freigh
Slide 48: SM SAAM: Ownership Structure
MAIN OPERATING COMPANIES • SM SAAM is a multinational company, based in Chile, which provides services to international trade through tow business areas: tug boats and air cargo logistics. • SM SAAM has a presence in 13 countries across America, operating a fleet of 192 tug boats, being the largest
Slide 49: SM SAAM Results
Contribution of Port Services to SM SAAM’s higher results as of September 2023 largely reflect the gain on Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES the sale of the port terminals and land logistics businesses to Hapag-Lloyd 245 during the third quarter of 2023. 15 Sep-22 Sep-23 Sales Re
Slide 50: Quiñenco
QUINENCO