Quinenco S.A. · BCS:QUINENCO
Quinenco — Investor Presentation (May 2021)
48 slides from Quinenco's investor presentation, May 2021
Slide 1: Investor Presentation May 2021
Investor Presentation May 2021
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 17% Luksic Minority Shareholders Group 83% (Chilean Stock Exchanges) 65% Industrial / Financial Services Mining Market Listed on London Stock Exchange Capitalization US$ 3.4 (1) billion (1) Market Capitalization as of April 30, 2021. 3
Slide 4: Quiñenco: Key Figures
QUIÑENCO AT A GLANCE QUIÑENCO: KEY FIGURES Diversified business conglomerate with increasing presence worldwide AGGREGATE ANNUAL ASSETS UNDER MANAGEMENT US$98 US$31 REVENUES OF MAIN bln bln OPERATING COMPANIES 129 68k 3 companies AA /AA+ COUNTRIES JOBS DJSI CHILE CREDIT RATING Quiñenco, through its
Slide 5: Quiñenco: Main Operating Companies
QUIÑENCO AT A GLANCE QUIÑENCO: MAIN OPERATING COMPANIES % Control as of December 2020 51.3% 60.0%2 28.9%3 30.0%4 52.2% 100% Mkt.Cap1: Mkt.Cap1: Mkt.Cap1: Mkt.Cap1: Mkt.Cap1: US$ 10.8 bln US$ 3.4 bln US$ 3.6 bln US$ 32.0 bln US$ 796 mln US$ 807 mln5 • Leading full services • No.1 Chilean beer • Globa
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 increasing International Domina
Slide 8: Locally and Internationally Well-Known and Prestigious Shareholders
QUIÑENCO OVERVIEW Prestigious Controlling Shareholders LOCALLY AND INTERNATIONALLY WELL-KNOWN AND PRESTIGIOUS SHAREHOLDERS First Class Board and Management BOARD OF DIRECTORS SENIOR MANAGEMENT Francisco Pérez Mackenna Chief Executive Officer Rodrigo Hinzpeter Kirberg Chief Counsel Mauricio Lob de la
Slide 9: Over 50 Years of History and Experience
QUIÑENCO OVERVIEW Proven Track Record in Value Creation OVER 50 YEARS OF HISTORY AND EXPERIENCE 1957 • Sociedad Forestal Quiñenco S.A. is created. • Quiñenco carries out US$500 mln capital increase. • SM SAAM acquires 51% of two concessions in Puerto • Quiñenco increases stake in CSAV to 37.44%. 201
Slide 10: Value Creation System
QUIÑENCO OVERVIEW Proven Track Record in Value Creation VALUE CREATION SYSTEM 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 Value Creation CORPORATE LEVEL TRANSACTIONS . . . which has led to various transactions throughout its history, generating US$1.8 billion in profits over the last 23 years from divestments of US$4.4 billion . . . US$ 963 US$ 768 (plus US$286 mln credit to equ
Slide 12: Strong Growth in NAV
QUIÑENCO OVERVIEW Proven Track Record in Value Creation STRONG GROWTH IN NAV . . . and an average annual compound growth rate of 9% in the net value of Quiñenco’s assets over the past 17 years(1) 7,873 Quiñenco-NAV(2) 6,858 6,541 6,565 (MUS$) 5,789 5,875 6,003 5,351 5,364 5,137 4,660 3,071 3,275 2,7
Slide 13: Favorable Performance of NAV, Share Price & Dividends
QUIÑENCO OVERVIEW Proven Track Record in Value Creation FAVORABLE PERFORMANCE OF NAV, SHARE PRICE & DIVIDENDS NAV(1)/Share Price Trend as of December 31, 2020 3.500 3.000 2,567 NAV: US$6.0 bln 2.500 2.000 1.500 1,250 Mkt.Cap: US$2.9 bln 1.000 500 0 NAV per share (Ch$) Share price (Ch$) (1) Market in
Slide 14: Investment Criteria
QUIÑENCO OVERVIEW Proven Track Record in Value Creation INVESTMENT CRITERIA Based on its investment criteria Brand & consumer franchise development potential Controlling stakes Sufficient critical mass Access to strategic partners / Prior operating commercial or industry alliances / experience syner
Slide 15: Leading Market Positions
QUIÑENCO OVERVIEW Dominant Market Positions LEADING MARKET POSITIONS The company’s investment strategy allows it to maintain a leading position in all its business areas and product segments #2 Cable company worldwide Leading beverage company in Chile #2 Beer in Argentina e #2 Loans in Chile #2 Fuel
Slide 16: Controlling or Influential Interest along with World Class Alliances
QUIÑENCO OVERVIEW Controlling interest & World Class Partners CONTROLLING OR INFLUENTIAL INTEREST ALONG WITH WORLD CLASS STRATEGIC & COMMERCIAL ALLIANCES Quiñenco partners with world class players to develop its markets and products to take advantage of combined know-how, experience and financial ca
Slide 17: Diversified Investments
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing DIVERSIFIED INVESTMENTS International Presence Becoming one of the most diversified holding companies in Chile . . . Investments by Sector(1) Net Asset Value(2) (NAV) (US$ 6.5 billion as of December 31, 2020) (US$ 6.0 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 with a positive growth trend, except in 2020 due to global pandemic Consolidated Revenues(1) Aggregate Revenues by Sector(2) (MUS$) (YTD December 2020
Slide 19: Sound Results
QUIÑENCO OVERVIEW Sound Financial Position SOUND RESULTS Sound bottom line results Net Income(1) Net Income(2) (MUS$) (YTD December 31, 2020, MUS$) 17.7% 348 295 249 254 348 153 157 152 36 -29 20 11 Transport Manufacturing Financial Services Port Services Other (3) . Total Energy 2016 2017 2018 2019
Slide 20: Quiñenco Holding Conservative Financial Structure
QUIÑENCO OVERVIEW Sound Financial Position QUIÑENCO HOLDING CONSERVATIVE FINANCIAL STRUCTURE Long term investments are financed with equity and long term debt in Chilean pesos . . . Assets Liabilities and Equity US$ 6.5 billion as of December 2020 US$ 6.5 billion as of December 2020 Cash ST Debt 8%
Slide 21: Low Financial Corporate Debt
QUIÑENCO OVERVIEW Sound Financial Position LOW FINANCIAL CORPORATE DEBT . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt (MUS$) 1000 0,4 0,35 800 0,3 600 0,25 0,2 400 0,15 0,1 200 0,05 0 0 2016 2017 2018 2019 2020 Net Debt Debt/Capitalization MUS$
Slide 22: Stable Dividend Cashflow
QUIÑENCO OVERVIEW Sound Financial Position STABLE DIVIDEND CASHFLOW . . . to the parent company based on good operating company performance Dividends Composition of Dividends (MUS$) (YTD December 2020) SM SAAM IRSA/CCU 200 13% 15% 169 112 92 113 2016 2017 2018 2019 2020 LQIF/Banco de Chile IRSA/CCU
Slide 23: Sustainability Policy
QUIÑENCO OVERVIEW Strong Commitment to Sustainable Progress 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 COMMITMENT TO THE LEADERSHIP EXCELLENCE DEVELOPMENT COUNTRY • We are a
Slide 24: Recent Events
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 25: SM SAAM Acquires Remaining 50% of Aerosan and Strengthens Tug Boat Division
RECENT EVENTS SM SAAM ACQUIRES REMAINING 50% OF AEROSAN AND FURTHER STRENGTHENS TUG BOAT DIVISION • On October 28, 2020, SM SAAM announced the acquisition of 50% of Aerosan, which provides airport services in Chile, Colombia and Ecuador, in US$32 million, thus reaching 100% ownership. • On January 2
Slide 26: CSAV Raises US$350 Million in Capital Increase
RECENT EVENTS CSAV RAISES US$350 MILLION IN CAPITAL INCREASE AND QUIÑENCO INCREASES ITS STAKE • As approved at an Extraordinary Shareholders’ Meeting, on October 16, 2020, CSAV successfully carried out a capital increase raising US$350 million, to refinance the acquisition of Hapag-Lloyd shares to r
Slide 27: Invexans Restructures Its Businesses, Establishing Parent of Enex in the UK
RECENT EVENTS INVEXANS RESTRUCTURES ITS BUSINESSES, ESTABLISHING PARENT COMPANY OF ENEX IN THE UK • On September 16, 2020, an Extraordinary Shareholders’ Meeting of Invexans approved a corporate reorganization, with the aim to boost the company’s global growth by structuring under independent compan
Slide 28: IRSA Launches Tender Offer for up to 4.44% of CCU
RECENT EVENTS INVERSIONES Y RENTAS S.A. LAUNCHES TENDER OFFER FOR UP TO 4.44% OF CCU • On May 18, 2021, Inversiones y Rentas S.A. (IRSA), controlling shareholder of CCU and owned in equal parts by Quiñenco and Heineken, announced a Tender Offer for up to 16,390,172 shares of CCU, equivalent to 4.44%
Slide 29: Global COVID-19 Pandemic Response
RECENT EVENTS GLOBAL COVID-19 PANDEMIC RESPONSE In response to the impact of the global pandemic, group companies have focused on: Protecting the health and safety of employees and supporting clients. Operational continuity in order to maintain chain of goods and services. Preserve financial liquidi
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 POSITION STRUCTURE • Good performance • Sound financial • Strong cash levels of main operating indicators • Conservative compani
Slide 32: Thank You for Your Attention
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 OWNERSHIP STRUCTURE (December 2020) • Established in 1893, Banco de Chile has a highly recognized name in Chile. 50.0% 50.0% • One of the most profitable banks in terms of return on assets and equity. • Assets of US$65 billion. 51.2% • Over 13,100 employees • Nationwide netw
Slide 35: Banco de Chile: ROAE, Operating Revenues, Net Income
MAIN OPERATING COMPANIES ROAE • In 2020, operating revenues decreased 3.8%, based on lower customer income, particularly a lower contribution from demand deposits and lower income from loans. Loan loss provisions went up 33% mainly due to additional provisions anticipating the impacts of the 19.6% 1
Slide 36: CCU: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (December 2020) • 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 50.0% 50.0% 80 countries. • Assets of US$3.5 bi
Slide 37: CCU: EBITDA by Segment, Sales, Net Income
MAIN OPERATING COMPANIES EBITDA* by Business Segment (YTD December 2020) • Sales grew 1.9% in 2020, reflecting growth in the Chile and Wine Wine segments, compensating a decrease in International Business. 14% • EBITDA reached MUS$417 in 2020, below 2019, mainly reflecting International lower EBITDA
Slide 38: Invexans: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (December 2020) • Invexans’ main asset has been its 28.4% stake in Nexans, a leading cable manufacturer with worldwide presence, based 99.7% in France. • An agreement signed in September 2008 allowed Invexans (Madeco at the time) to become the main shareh
Slide 39: Nexans: Sales by Key End Markets
MAIN OPERATING COMPANIES SALES* BY KEY-END MARKETS (YTD December 2020) Other Activities 18% • Nexans is a worldwide leader in the cable industry with an Building & industrial footprint in 38 countries and commercial activities Territories worldwide, after over a century of progress. 43% • Headquarte
Slide 40: Invexans: Operating, Non-operating and Net Income
MAIN OPERATING COMPANIES • In 2020, the performance of Nexans, Invexans’ main asset, Operating Income (Loss) improved substantially from the loss reported in 2019 to a gain (MUS$) of €78 million, due to lower restructuring costs, a gain on asset disposals and cost savings, offsetting lower operating
Slide 41: Enex: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (December 2020) • Enex S.A. has a network of 446 service stations, with 175 convenience stores in Chile, 41 travel centers in the USA and 59 service stations in Paraguay. 99.7% • Main business activities: • Distribution of fuels through its service statio
Slide 42: Enex: Sales, Net Income, Operating Income
MAIN OPERATING COMPANIES Sales (MUS$) -17.9% • In 2020 sales decreased 17.9% to MUS$2,970, mainly 3,615 due to the negative impact of the pandemic and the 3,202 restrictions related to it, particularly during the 2Q, 2,970 2,657 leading to an annual decline of 13.6% in sales volumes. 2,379 • Operati
Slide 43: CSAV: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (December 2020) • CSAV, founded in 1872, is one of the oldest shipping Others companies in the world. 61.8% 38.2% • Its activities include overseas transport of containerized cargo through its investment in Hapag-Lloyd. • Total assets as of December 2019
Slide 44: CSAV: Operating, Non-operating and Net Income
MAIN OPERATING COMPANIES Operating Income (Loss) • In 2020, CSAV reported a net gain of MUS$222, primarily (MUS$) reflecting the positive performance of its main asset, 8 Hapag-Lloyd, which reported net income of MUS$1,058, up from MUS$405 in 2019, boosted by higher average 4 1 freight rates and eff
Slide 45: Hapag-Lloyd: Transported Volume by Trade
MAIN OPERATING COMPANIES • Hapag-Lloyd is a leading global liner shipping company, with a TRANSPORTED VOLUME BY TRADE fleet of 237 modern ships, 12 million TEU transported a year (YTD December 2020) and a total capacity of around 1.7 million TEU. • Founded in 1847 and headquartered in Hamburg, Germa
Slide 46: SM SAAM: Ownership Structure
MAIN OPERATING COMPANIES OWNERSHIP STRUCTURE (December 2020) Others • SM SAAM is dedicated to port services and management of 52.2% 47.8% port concessions, including three main business areas: port terminals, tug boats, and logistics. • SM SAAM has presence in 11 countries and over 79 ports in Ameri
Slide 47: SM SAAM: Sales, Operating Income, Net Income
MAIN OPERATING COMPANIES • In 2020, SM SAAM’s consolidated sales reached MUS$584, Sales (MUS$) up by 10.2%, mainly due to consolidation with the tug 10.2% boat operations in Brazil, and also at logistics, boosted by the consolidation with Aerosan as of November 2020. 584 516 530 Revenue at port term
Slide 48: Quiñenco S.A.
QUINENCO S.A.