Quinenco S.a. · BCS:QUINENCO
Quinenco — Investor Presentation (October 2023)
51 slides from Quinenco's investor presentation, October 2023
Slide 1: Investor Presentation October 2023
Investor Presentation October 2023
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: Quiñenco at a Glance
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 4: Ownership Structure
QUIÑENCO AT A GLANCE OWNERSHIP STRUCTURE 65% 83% 17% Luksic Minority Shareholders Group Holding (Chilean Stock Exchanges) Industrial / Financial Mining Services Listed on London Stock Exchange US$ 122bln US$ 7.6bln 136 74,700 US$ 4.9 bln AA+/AA+ Assets under Net Asset Countries(1) Jobs(1) Market Cap
Slide 5: Quiñenco: Diversified Portfolio of Six Main Operating Companies
QUIÑENCO : INTRODUCTION QUIÑENCO: DIVERSIFIED PORTFOLIO OF SIX MAIN OPERATING COMPANIES % Control as of June 2023 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Book Value3 51.3% 65.9% 19.3% 30.0%2 61.0% 100% US$ 1.0 bln US$ 10.2bln US$2.3 bln US$ 3.6 bln US$ 32.0 bln US$ 1.0 bln • Leading full servic
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. Pedro Marín L. Chief Executive Officer Performance Control Manager Rodrigo Hinzpeter K.
Slide 9: 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 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) 7,873 7,609 7,788 7,366 Quiñenco‐NAV(2) 6,858 6,541 6,565 (MUS$) 5,789 5,875 6,003 5,351 5,364 5,137 4,660 3,275 3,071 2,721 1,989 2,028 2,142 1,4
Slide 11: Favorable Performance of NAV, Share Price & Dividends
QUIÑENCO OVERVIEW FAVORABLE PERFORMANCE OF NAV, SHARE PRICE & DIVIDENDS Dividends Paid NAV(1)/Share Price Trend (MCh$) 56% 30% as of June 30, 2023 1,063,492 1,060,597 NAV: US$7.6 bln 40% 30% 50% 4,500 $3,669 4,000 3,500 3,000 $2,690 123,624 72,172 63,015 2,500 2,000 2019 2020 2021 2022 YTD Sept 2023
Slide 12: Investment Criteria
QUIÑENCO OVERVIEW Proven Track Record in INVESTMENT CRITERIA Value Creation Based on its investment criteria Brand & consumer Competitive franchise development advantages and potential sufficient critical mass Prior operating or Controlling stakes or industry experience significant influence Access
Slide 13: Leading Market Positions
QUIÑENCO OVERVIEW Dominant Market LEADING MARKET POSITIONS Positions The company’s investment strategy allows it to maintain a leading position in all its business areas and product segments Leading beverage company in Chile #2 Cable company worldwide #2 Beer in Argentina Beverage Manufacturing #2 F
Slide 14: Controlling or Influential Interest Along with World Class Strategic & Commercial Alliances
QUIÑENCO OVERVIEW Controlling interest & CONTROLLING OR INFLUENTIAL INTEREST ALONG WITH World Class Partners WORLD CLASS STRATEGIC & COMMERCIAL ALLIANCES Quiñenco partners with world class players to develop its markets and products to take advantage of combined know‐how, experience and financial ca
Slide 15: Diversified Investments
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing DIVERSIFIED INVESTMENTS International Presence Becoming one of the most diversified holding companies in Chile . . . Investments by Sector(1) Net Asset Value(2) (NAV) (as of June 30, 2023) (as of June 30, 2023) (Percentages calculated over gro
Slide 16: Growing and Diversified Revenues
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing GROWING AND DIVERSIFIED REVENUES International Presence . . . achieving diversified and growing revenues . . . Consolidated Revenues(1) Aggregate Revenues by Sector(2) (MUS$) (YTD June 2023) Port Services Financial 9,990 1% Services 8% Beverag
Slide 17: Sound Results
QUIÑENCO OVERVIEW Sound Financial SOUND RESULTS Position . . . and sound bottom line results Net Income(1) (MUS$) 4,410 ‐70.7% Jun‐22 Jun‐23 2,362 2,152 2,152 1,905 630 630 262 308 219 183 237 174 57 18 25 19 Port Services Financial Total Transport Energy 2019 2020 2021 2022 YTD Jun‐22 YTD Jun‐23 (5
Slide 18: 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$11.0 billion as of June 2023 US$11.0 billion as of June 2023 Cash ST Debt LT Debt 10%
Slide 19: Low Financial Corporate Debt
QUIÑENCO OVERVIEW Sound Financial LOW FINANCIAL CORPORATE DEBT Position . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt (MUS$) 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 Jun‐23 Net Debt Debt/Capitalizat
Slide 20: Conservative Maturity Profile
QUIÑENCO OVERVIEW Sound Financial CONSERVATIVE MATURITY PROFILE Position . . . Quiñenco's individual debt maturity profile is stable and conservative Maturity Profile of Quiñenco’s bonds (MUS$) 120 100 80 60 40 20 ‐ 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039
Slide 21: Diversified and Healthy Dividend Cashflow
QUIÑENCO OVERVIEW Sound Financial DIVERSIFIED AND HEALTHY DIVIDEND CASHFLOW Position . . . to the parent company based on good operating company performance Dividends Composition of Dividends (MUS$) (YTD September 2023) NEXANS 1% SM SAAM Banchile Vida IRSA/CCU LQIF/Banco de Chile CSAV/HL Nexans Othe
Slide 22: 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. We work for progress, open to the world to continue undertaking new businesses, discove
Slide 23: Recent Events
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 24: Andrónico Luksic to Resign from Boards of Quiñenco and Other Group Companies
RECENT EVENTS ANDRÓNICO LUKSIC TO RESIGN FROM BOARDS OF QUIÑENCO AND OTHER GROUP COMPANIES AS OF END OF YEAR • 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 25: Changes in Corporate Governance Effective as of December 29, 2023
RECENT EVENTS CHANGES IN CORPORATE GOVERNANCE EFFECTIVE AS OF DECEMBER 29, 2023 Long‐standing members of the group’s professional team of executives will Pablo Granifo L. Paola Luksic F. Francisco Pérez M. take on key positions to be left by Appointed Chairman of Appointed as new Appointed Chairman
Slide 26: 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 27: 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 28: 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 air cargo logistics company Pertraly in Ecuador. • The acquisition will allow Aerosan to double its operations in Ecuador.
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: Nexans Completes Divesture of Telecom Systems and Acquisition of Reka Cables
RECENT EVENTS NEXANS COMPLETES DIVESTURE 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 Nexan
Slide 31: 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, has to date inaugurated three new stations (two in Texas and one in Missouri), thus increasing its network to
Slide 32: CCU and Enex Establish New Partnerships in Paraguay
RECENT EVENTS CCU AND ENEX ESTABLISH NEW PARTNERSHIPS IN PARAGUAY • On March 16, 2023, CCU and Enex separately informed the entrance of Banco Sudameris as a new partner in their respective operations in Paraguay. • CCU: in Bebidas del Paraguay and Distribuidora del Paraguay, CCU now controls 55% own
Slide 33: Quiñenco Places Bonds on Local Market 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 34: Conclusions
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 35: Outlook
CONCLUSIONS OUTLOOK FACTORS THAT CONTRIBUTE TO QUIÑENCO’S ABILITY TO PURSUE AND UNDERTAKE NEW INVESTMENT OPPORTUNITIES PORTFOLIO HEALTHY SOUND CASH OPTIMIZATION FINANCIAL STRUCTURE POSITION • Good performance of main • Sound financial indicators • Strong cash levels operating companies • Well struct
Slide 36: Thank You for Your Attention
la 2 4am QUINENCO S.A. THANK YOU FOR YOUR ATTENTION
Slide 37: Appendix: Main Operating Companies
APPENDIX MAIN OPERATING COMPANIES
Slide 38: 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$65 billion. • Over 12,500 employees • Nationwide network of 266 branches and 1,810 ATMs. • Traded on the NY
Slide 39: Banco de Chile Results
Net income in 1H 2023 impacted by lower Contribution of Financial Services to MAIN OPERATING COMPANIES non‐customer income and higher operating expenses, Quiñenco’s Net Income (MUS$) 219 partly compensated by a decrease in expected credit 183 losses, reflecting no additional provisions in the curren
Slide 40: 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$4.2 billion. • Over 10,500 employees. • 35 beverage fa
Slide 41: CCU Results
CCU´s net income in 1H 2023 remained stable, resulting from a Contribution of IRSA in Other to MAIN OPERATING COMPANIES drop in wine exports largely offset by better performance in the Quiñenco´s Net Income (MUS$) 19 14 Chile segment, thanks to revenue management initiatives, and in the Internationa
Slide 42: 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 43: Nexans Results
Contribution of Manufacturing to Nexans’ net income in 1H 2023 decreased 33%, despite MAIN OPERATING COMPANIES improved operating performance that was boosted by the Quiñenco´s Net Income (MUS$) 67 industry, distribution and usages segments, due to lower 27 non‐operating results. The drop in Nexans¿
Slide 44: Enex: Ownership Structure
MAIN OPERATING COMPANIES • Enex S.A. has a network of 447 service stations, with 208 convenience stores in Chile, 45 travel centers in the USA and 75 service stations in Paraguay. • Main business activities: Distribution of fuels through its service stations. Distribution of fuels to industrial
Slide 45: Enex Results
Contribution of Energy to Quiñenco’s Enex’s contribution was down by 68.3% in 1H 2023, MAIN OPERATING COMPANIES Net Income (MUS$) mainly due to a negative impact of inventory revaluation 57 and higher operating expenses, the latter affected by 18 inflation and transport costs, despite growth in reve
Slide 46: 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$10.3 billion. • In November 2015 Hapag‐Lloyd ca
Slide 47: CSAV Results
CSAV’s 1H 2023 results mainly reflect its share in Hapag‐ Contribution of Transport to MAIN OPERATING COMPANIES Lloyd’s lower performance during the period in a more Quiñenco’s Net Income (MUS$) 1,905 normalized industry context, along with income tax of 237 US$561 million, related to the use of def
Slide 48: Hapag-Lloyd: Transported Volume by Trade
Hapag‐Lloyd´s results in 1H 2023 down by 65.5%. In a scenario of Contribution of Transport to MAIN OPERATING COMPANIES weaker demand for transport in containers since the end of 2022, and Quiñenco’s Net Income (MUS$) a normalization of global supply chains, Hapag‐Lloyd’s average 1,905 freight rates
Slide 49: SM SAAM: Ownership Structure
MAIN OPERATING COMPANIES • SM SAAM has, until recently, been dedicated to port services and management of port concessions, including three main business areas: port terminals, tug boats, and logistics. • In 2022, SM SAAM had a presence in 14 countries and 90 ports in America, operating 10 port term
Slide 50: SM SAAM Results
SM SAAM’s lower results in 1H 2023 are attributable to the Contribution of Port Services to MAIN OPERATING COMPANIES decline in performance of port terminals and land logistics in Quiñenco’s Net Income (MUS$) 25 discontinued operations, affected by lower activity of foreign 19 trade, whereas continu
Slide 51: Quiñenco S.A.
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