Sonda S.a. · BCS:SONDA
Sonda — Investor Day (August 2013)
27 slides from Sonda's investor day presentation, Aug 8, 2013
Slide 1: Agosto 8, 2013
AGOSTO 8, 2013 1
Slide 2: Overview
Overview IT Industry in LATAM Company Highlights Financial Review 2
Slide 3: Overview
Overview Revenue Breakdown (2012) SONDA is the leading Latin American-owned IT services provider OPLA2 Chile 13% 45% Platforms Founded in 1974 and headquartered in Santiago, Chile Mexico 39% 9% Presence in 10 countries in the region with main operations in Chile, Brazil and Mexico — 13,000+ em
Slide 4: Successful Growth History
Successful Growth History Foundation International Expansion Regional Consolidation (1974 – 1983) (1984 – 2005) (2006 ) IPO (2006) Payment solution for Santiago’s public transportation system (Transantiago) Livestock traceability (Uruguay and Colombia) Web -based solution for government F
Slide 5: Value Proposition
Value Proposition SONDA has a strong focus in solving customers’ business needs… IT Adoption Lifecycle IT Business IT Solution Infrastructure System Operation and Strategy Design Supply Integration Maintenance …through a wide range of solutions based on Information Technology IT Services Software Ap
Slide 6: IT Industry in LATAM
Overview IT Industry in LATAM Company Highlights Financial Review 6
Slide 7: Latin America, one of the fastest growing regions in the world
Latin America, one of the fastest growing regions in the world IT Spending as a Percentage of GDP (December 2012) • In Latin America, IT spending as a percentage of 50 United States GDP is between 1.5% and 2.4% GDP per Cápita (USD Th) Japan 40 • In developed economies, IT spending as a percentage of
Slide 8: Latin America, one of the fastest growing regions in the world
Latin America, one of the fastest growing regions in the world IT spending in LatAm is expected to grow at twice the rate than of the world between 2012– 2015 Distribution of IT Investment - 2013 IT Spending CAGR ‘12-‘15 OPLA Brazil 29% 47% 14.3% US$ 9.9% 127.9bn 6.1% ~2.0x 4.9% Chile 3.1% 6% Mexico
Slide 9: Favorable Outlook for IT Industry in Latin America
Favorable Outlook for IT Industry in Latin America 9.9 % CAGR (2012-2015) IT INDUSTRY IN LATAM 10.2 % 10.7% 12.2% 10.1% 7.7% CAGR (2012- BRAZIL CHILE MEXICO COLOMBIA 2015) IN CAGR CAGR CAGR CAGR STRATEGIC MARKETS 2012-2015 2012-2015 2012-2015 2012-2015 11.3 % CAGR (2012-2015) IT SERVICES IN LATAM So
Slide 10: Favorable Outlook for IT Industry in Latin America
Favorable Outlook for IT Industry in Latin America Projected CAGR % (2012-2015) 14.4% 12.5% 11.5% 11.9% 11.3% 11.1% 11.3% 10.0% 9.9% 9.8% 9.5% 9.6% 9.4% 9.4% 5.1% LatAm Chile Brazil Mexico Colombia IT Services Platforms Applications Source: IDC LA IT Spending Patterns: The Latin America Black Book 1
Slide 11: Company Highlights
Overview IT Industry in LATAM Company Highlights Financial Review 11
Slide 12: Company Highlights
Company Highlights 7 1 Experienced management team backed by a strong Leading Latin-American board with solid corporate IT services company governance 6 2 Solid track record of Presence in a growing financial performance and underpenetrated market 5 3 Opportunity to continue growing through organic
Slide 13: Leading Latin-American IT Services Company
1 Leading Latin-American IT Services Company SONDA is the largest Latin American-owned IT services provider The one-stop shop for IT Services in Latin America — Integrated solutions servicing clients at all stages of the IT adoption lifecycle Long-standing presence in the region, focusing on lon
Slide 14: Presence in a Growing and Underpenetrated Market
2 Presence in a Growing and Underpenetrated Market SONDA Operates in a Region with Strong Growth and Low Risk GDP Growth (%) 2012 Government Net Debt (% of GDP) 2006-2012 2013-2018e 72.0% 61.2% 5.8% 4.6% 4.6% 4.1% 38.0% 3.6% 4.1% 3.3% 35.2% 2.8% 27.8% 1.9% 1.5% 1.1% 0.2% (6.9%) Chile Brazil Mexico O
Slide 15: Diversified Blue-Chip Customer Base
3 Diversified Blue-Chip Customer Base Basis for a Solid and Stable Revenue Stream Revenue Breakdown (December 31, 2012) Client focus on blue-chip companies By Industry By Country Utilities — Large and medium size companies Others 5% OPLA Healthcare 9% 12% — Regional clients 2% Retail Mexico 32% 9%
Slide 16: Integrated One-Stop Shop Business Model
4 Integrated One-Stop Shop Business Model Wide Range of Products and Services offered with a World Class Category Unparallel capacity to deliver IT services through all Strategic Consulting the region IT Consulting BPO / ASP Independent IT services provider with no restrains to offer the best te
Slide 17: Opportunity to Continue Growing
5 Opportunity to Continue Growing Successful triennial investment plans executed in the past Since 2007, SONDA has invested over US$303 mm in Capex for organic growth and US$413 mm in acquisitions Sonda’s Triennial Investment Plans Organic Organic Organic Growth growth Growth 36% 29% 48% US$ US$ 277
Slide 18: Opportunity to Continue Growing
5 Opportunity to Continue Growing Clear M&A Strategy, Backed by Solid Execution Clear strategic rationale of increasing client base and enhancing IT offering Wide knowledge of the IT market and successful experience in acquiring and integrating IT companies — 30+ companies or businesses acquired
Slide 19: Opportunity to Continue Growing
5 Opportunity to Continue Growing 2013 -2015 Triennial Investment Plan of US$ 700 million To continue developing SONDA’s strategy of profitable growth, while maintaining a solid and stable financial position and taking advantage of growth opportunities in the IT industry in the region 2013-2015 Cape
Slide 20: Solid Track Record of Financial Performance
6 Solid Track Record of Financial Performance Solid growth on the back of stable margins … SONDA has been profitable every year since its foundation in 1974 The Company has been able to maintain strong growth throughout the years Revenue (US$mm) EBITDA (US$mm) $1,419 $1,142 $244 $952 $177 $164 $
Slide 21: Solid Track Record of Financial Performance
6 Solid Track Record of Financial Performance …coupled with profitability, low leverage and steady dividend payout ratio Net Income ($mm) Net Debt / EBITDA1 $95 1.0x $78 0.8x $72 $62 0.4x 2009 2010 2011 2012 (0.4x) 2009 2010 2011 2012 Capex ($mm) Dividend Payout Ratio2 $184 50% 50% 50% 50% $139 $109
Slide 22: Experienced Management Team Backed by a Strong Board
7 Experienced Management Team Backed by a Strong Board with Solid Corporate Governance High Standards of Corporate Governance 3 Independent Directors out of a board of 9 members Entire board is elected every three years; cumulative voting is permitted for the election of directors Directors Co
Slide 23: Financial Review
Overview IT Industry in LATAM Company Highlights Financial Review 23
Slide 24: Revenue and EBITDA
Revenue and EBITDA Consolidated revenue has grown 24% from 2009 to 2012, which has been accompanied by a growth of 22% in EBITDA (US$ million) Consolidated Revenue Consolidated EBITDA $1,419 $244 $1,142 $952 -1.6% $177 $164 +1.4% +4.0%2 $738 $135 +5.2%2 $649 $638 $108 $110 18.3% 17.3% 15.5% 17.2% 16
Slide 25: Revenue and EBITDA
Revenue and EBITDA Ex-Chile Improved operationsshare annualof business revenue growth in ex-Chile ratesoperations over 25% with and increasing EBITDA margins which drives which turnsconsolidated growth and into overall growth and stabilization stabilization of of margins margins… (US$ million) Chile
Slide 26: Revenue and EBITDA
Revenue and EBITDA …with a significant contribution from Brazil operations with annual revenue growth rates of 22% since 2009 and improving EBITDA margins (US$ million) Brazil Mexico OPLA $479 $401 $351 - 0.4% $176 $261 +12.0%2 $132 $127 - 0.1% $214 $213 $121 +7.1%2 - 0.1% $94 +0.7%2 $84 $84 $81 $80
Slide 27: Phone (56-2) 2 657 50 00 Teatinos 500, Santiago, CHILE
Phone (56-2) 2 657 50 00 Teatinos 500, Santiago, CHILE www.SONDA.com 27