Quinenco S.a. · BCS:QUINENCO
Quinenco — Investor Presentation (April 2024)
34 slides from Quinenco's investor presentation, April 2024
Slide 1: Investor Presentation
Investor Presentation April 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: Quiñenco at a Glance
• QUIÑENCO AT A GLANCE • QUIÑENCO OVERVIEW • RECENT EVENTS • CONCLUSIONS 3
Slide 4: 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$ 7.8 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 December 2023 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$ 11.2 bln US$ 2.2 bln US$4.6 bln US$26.5 bln US$1.1 bln US$1.0 bln • Leading full services bank •
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$2.0 billion in profits over the last 26 years from divestments of US$4.8 billion
Slide 10: Strong Growth in NAV
QUIÑENCO OVERVIEW STRONG GROWTH IN NAV … and an average annual compound growth rate of 9% in the net value of Quiñenco’s assets over the past 20 years(1) Quiñenco-NAV(2) (3) 7,873 7,788 7,781 7,366 (MUS$) 6,858 6,565 6,541 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 December 31, 2023 56% 30% 1,063,492 1,060,597 NAV: US$7.8 bln 4,500 40% 30% 50% $4,105 4,000 3,500 $2,865 72,172 63,015 123,624 3,000 2,500 2019 2020 2021 2022 2023 2,000 Perc
Slide 12: Investment Criteria
QUIÑENCO OVERVIEW INVESTMENT CRITERIA Brand & consumer Competitive franchise development advantages and potential sufficient critical mass Controlling stakes or Prior operating significant influence or industry experience Access to strategic Growth platform or partners / commercial add-on acquisitio
Slide 13: Leading Market Positions
QUIÑENCO OVERVIEW LEADING MARKET POSITIONS The company’s investment strategy allows it to maintain a leading position in all its business areas and product segments Beverage Leading beverage company in Chile Financial #2 Beer in Argentina #2 Loans in Chile #2 Deposits in Chile Energy Transport #2 Fu
Slide 14: Controlling or Influential Interest Along with World Class Strategic & Commercial Alliances
QUIÑENCO OVERVIEW CONTROLLING OR INFLUENTIAL INTEREST ALONG WITH WORLD CLASS STRATEGIC & COMMERCIAL ALLIANCES Quiñenco partners with world class players to develop its markets and products to take advantage of combined know- how, experience and financial capacity Beverage Financial Energy Transport
Slide 15: Diversified Investments
QUIÑENCO OVERVIEW DIVERSIFIED INVESTMENTS Becoming one of the most diversified holding companies in Chile . . . Investments by Sector(1) Net Asset Value(2) (NAV) (as of December 31, 2023) (as of December 31, 2023) (Percentages calculated over gross assets) Cash Port Services Other 9% Financial 1% Ca
Slide 16: Growing and Diversified Revenues
QUIÑENCO OVERVIEW GROWING AND DIVERSIFIED REVENUES . . . achieving diversified and growing revenues . . . Consolidated Revenues(1) Aggregate Revenues by Sector(2) (MUS$) (YTD December 2023) 3.1% 9,413 Port Services Financial 9,130 1% Services 9% Beverage 7% 6,178 5,655 5,151 Manufacturing 21% Transp
Slide 17: Sound Results
QUIÑENCO OVERVIEW SOUND RESULTS . . . and sound bottom line results Net Income(1) -76.2% (MUS$) 4,031 Dec-22 Dec-23 4,031 3,672 2,158 960 960 239 282 388 349 260 91 39 157 24 155 Total Financial Port Services Energy Transport 2019 2020 2021 2022 2023 (144) Other(2) Note: Figures translated from nomi
Slide 18: 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$11.1 billion as of December 2023 US$11.1 billion as of December 2023 Cash LT Debt ST Debt 9% Other 13% 1% 2% O
Slide 19: Low Financial Corporate Debt
QUIÑENCO OVERVIEW LOW FINANCIAL CORPORATE DEBT . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt (MUS$) 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 2023 Net Debt Debt/Capitalization(1) MUS$ 2019 2020 2021
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 of Quiñenco and Other Group Companies
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 as of 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 Announces Agreement to Acquire La Triveneta Cavi
RECENT EVENTS NEXANS ANNOUNCES AGREEMENT TO ACQUIRE ITALIAN COMPANY LA TRIVENETA CAVI • On February 9, 2024, Nexans announced the signing of a landmark agreement to acquire La Triveneta Cavi, an Italian company well-known for its excellence in the European medium- and low-voltage segments. • La Triv
Slide 29: Nexans Completes Divestment of Telecom Systems and Acquisition of Reka Cables
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 30: 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 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: Conclusions
• QUIÑENCO AT A GLANCE • QUIÑENCO OVERVIEW • RECENT EVENTS • CONCLUSIONS 32
Slide 33: 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 34: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION 34