Quinenco S.a. · BCS:QUINENCO
Quinenco — Investor Presentation (August 2024)
46 slides from Quinenco's investor presentation, August 2024
Slide 1: Investor Presentation
Investor Presentation August 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 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 141 75,800 US$ 113 bln Countries(1) Jobs(1) Assets under management (1) US$ 8.3 bln US$ 5.8 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 March 2024 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Book Value3 51.3% 65.9% 19.3% 30.0%2 62.6% 100% US$ 12.0 bln US$ 2.0 bln US$5.7bln US$31.3 bln US$1.1 bln US$1.0 bln • Leading full services bank • No.
Slide 6: Agenda: 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. Juan Carlos Jobet E. Ignacio Guerrero G. Chairman Vice Chairman Director Director Director Director Director Independent Di
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$1.8 billion in profits over the last 26 years from divestments of US$4.4 billion
Slide 10: Strong Growth in NAV
QUIÑENCO OVERVIEW STRONG GROWTH IN NAV … and an average annual compound growth rate of 9% in the net value of Quiñenco’s assets over the past 20 years (1) 8,331 Quiñenco-NAV(2) (3) 7,873 7,366 7,788 7,781 (MUS$) 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 2,02
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 March 31, 2024 56% 30% 1,063,492 1,060,597 6,000 NAV: US$8.3 bln 50% 30% 30% $4,919 5,000 252,590 63,015 123,624 4,000 $3,450 2020 2021 2022 2023 May-24 3,000 Percentage of pr
Slide 12: Investment Criteria
QUIÑENCO OVERVIEW INVESTMENT CRITERIA Brand & consumer Competitive franchise development advantages and potential sufficient critical mass Controlling stakes or Prior operating significant influence or industry experience Access to strategic Growth platform or partners / commercial add-on acquisitio
Slide 13: Leading Market Positions
QUIÑENCO OVERVIEW LEADING MARKET POSITIONS The company’s investment strategy allows it to maintain a leading position in all its business areas and product segments Beverage Leading beverage company in Chile Financial #2 Beer in Argentina #2 Loans in Chile #2 Deposits in Chile Energy Transport #2 Fu
Slide 14: Controlling or Influential Interest with World Class Alliances
QUIÑENCO OVERVIEW CONTROLLING OR INFLUENTIAL INTEREST ALONG WITH WORLD CLASS STRATEGIC & COMMERCIAL ALLIANCES Quiñenco partners with world class players to develop its markets and products to take advantage of combined know - how, experience and financial capacity Beverage Financial Energy Transport
Slide 15: Diversified Investments
QUIÑENCO OVERVIEW DIVERSIFIED INVESTMENTS Becoming one of the most diversified holding companies in Chile . . . Investments by Sector(1) Net Asset Value(2) (NAV) (as of March 31, 2024) (as of March 31, 2024) (Percentages calculated over gross assets) Cash Port Services Other 9% Financial 7% 0% Cash
Slide 16: Growing and Diversified Revenues
QUIÑENCO OVERVIEW GROWING AND DIVERSIFIED REVENUES . . . achieving diversified and growing revenues . . . Consolidated Revenues(1) Aggregate Revenues by Sector(2) (MUS$) (YTD March 2024) 8,410 Port Services Financial 8,158 1% Services 8% Beverage 8% 5,520 4,602 5.2% Manufacturing 22% 2,153 Transport
Slide 17: Sound Results
QUIÑENCO OVERVIEW SOUND RESULTS . . . and sound bottom line results Net Income(1) (MUS$) 3,601 Mar-23 Mar-24 415 328 1,928 67 75 858 14 5 8 13 415 252 (0) Total Financial Port Services Energy Transport (3) (12) Other(2) (12) (105) 2020 2021 2022 2023 YTD Mar-23 YTD Mar-24 Note: Figures translated fr
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$10.7 billion as of March 2024 US$10.7 billion as of March 2024 Cash LT Debt ST Debt 9% Other 12% 1% 2% Other L
Slide 19: Low Financial Corporate Debt
QUIÑENCO OVERVIEW LOW FINANCIAL CORPORATE DEBT . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt (MUS$) 1,000 0.4 0.35 800 0.3 600 0.25 0.2 400 0.15 0.1 200 0.05 - 0 2020 2021 2022 2023 Mar-24 Net Debt Debt/Capitalization(1) MUS$ 2020 2021 2022 2023
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 June 2024) SM SAAM IRSA/CCU LQIF/Banco de Chile CSAV/HL Nexans Other NEXANS 1,209 2% SM SAAM 1,112 14% LQIF/Banco de Chil
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: Agenda: 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 Long-standing members of the group’s professional team of executives have taken on key positions left by Quiñenco’s Chairman Pablo Granifo L. Paola Luksic F. Francisco Pérez M. Appointed Chairman of the Appointed as new
Slide 25: Nexans Acquires Italian Company La Triveneta Cavi
RECENT EVENTS NEXANS ACQUIRES ITALIAN COMPANY LA TRIVENETA CAVI • On June 6, 2024, Nexans announced the completion of the acquisition of La Triveneta Cavi, an Italian company well-known for its excellence in the European medium- and low-voltage segments, per the agreement signed in February 2024. •
Slide 26: Enex Opens New Road Ranger Travel Centers in the USA
RECENT EVENTS ENEX OPENS NEW ROAD RANGER TRAVEL CENTERS EXPANDING ITS PRESENCE IN THE USA TO 50 LOCATIONS • 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). At the beginning of 2024, an additional locat
Slide 27: CCU and Enex Reach Full Ownership of Paraguay Subsidiaries
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 28: Agenda: Conclusions
• QUIÑENCO AT A GLANCE • QUIÑENCO OVERVIEW • RECENT EVENTS • CONCLUSIONS 28
Slide 29: 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 30: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION 30
Slide 31: Appendix: Main Operating Companies
APPENDIX MAIN OPERATING COMPANIES
Slide 32: 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$64 billion. • Over 12,200 employees. • Nationwide network of 257 branches and 1,891 ATMs. • Traded on the N
Slide 33: Banco de Chile Financial Results
Contribution of Financial Services Net income as of March 2024 up by 11.9%, mostly attributable to higher to Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES operating revenues boosted by growth in customer income, partly 75 compensated by higher operating expenses, higher income tax expense, 6
Slide 34: 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$3.9 billion. • Over 10,200 employees. • 35 beverage fa
Slide 35: CCU Financial Results
Contribution of IRSA in Other to YTD March 2024 results were impacted by the devaluation in Argentina Quiñenco´s Net Income (MUS$) MAIN OPERATING COMPANIES and the contraction of the beer industry in the same country, and also by 19 lower performance of the Chile operating segment, partly compensate
Slide 36: Nexans Overview
MAIN OPERATING COMPANIES • Nexans is a worldwide leader in the cable industry with an industrial footprint in 41 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 37: Nexans Financial Results
Contribution of Nexans in Other to Nexans net income in 2023 decreased 9.8%, despite improved operating Quiñenco´s Net Income (MUS$) MAIN OPERATING COMPANIES performance that was boosted by the electrification related segments, due 66 40 to lower non‐operating results. The drop in Nexans’ contributi
Slide 38: Enex: Ownership Structure
MAIN OPERATING COMPANIES • Enex S.A. has a network of 449 service stations, with 212 convenience stores in Chile, 49 travel centers in the USA and supplies 77 service stations in Paraguay. • Main business activities: ➢ Distribution of fuels through its service stations. ➢ Distribution of fuels to in
Slide 39: Enex Financial Results
Contribution of Energy to Enex’s contribution contracted by 67.9%, mainly due to losses from Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES exchange rate differences, despite positive operating performance, based 14 on inventory revaluation gains in the current quarter compared to losses in 5
Slide 40: 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 2023 were US$8.3 billion. • In November 2015 Hapag-Lloyd car
Slide 41: CSAV Financial Results
Contribution of Transport to CSAV’s 1Q 2024 results mainly reflect its share in Hapag-Lloyd’s lower Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES performance during the period in a more normalized industry context, 328 along with an income tax expense of US$230 million at CSAV, related to (1
Slide 42: Hapag-Lloyd: Ownership Structure
MAIN OPERATING COMPANIES • Hapag-Lloyd is a leading global liner shipping company, with a fleet of 266 modern ships, 12 million TEU transported a year and a total capacity of around 2.0 million TEU. • Founded in 1847 and headquartered in Hamburg, Germany, Hapag-Lloyd offers a global network of 110 l
Slide 43: Hapag-Lloyd Financial Results
Contribution of Transport to Hapag-Lloyd´s 1Q 2024 results decreased by 84.2% in a context of more Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES normalized global supply chains and therefore lower rates in container shipping, 328 translating in the case of Hapag-Lloyd to average freight rate
Slide 44: SM SAAM: Ownership Structure
MAIN OPERATING COMPANIES • SM SAAM is a multinational company, based in Chile, which provides services to international trade through two business areas: tug boats and air logistics. • SM SAAM has a presence in 13 countries across America, operating a fleet of 208 tug boats, being the largest tug bo
Slide 45: SM SAAM Financial Results
SM SAAM’s higher results as of March 2023 were driven by strong Contribution of Port Services to Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES performance of the Air Logistics segment, a gain on the sale of real estate, 13 and higher finance income, compensating lower performance of the Tug
Slide 46: Quiñenco
QUINENCO