Quinenco S.A. · BCS:QUINENCO
Quinenco — FY2021 Earnings Presentation
36 slides from Quinenco's earnings presentation, April 2022
Slide 1: Full Year and 4Q 2021 Earnings Presentation
Full Year and 4Q 2021 Earnings Presentation April, 2022
Slide 2: Agenda
QUIÑENCO: OVERVIEW 2021 RESULTS RESULTS OF MAIN OPERATING COMPANIES CONCLUSIONS
Slide 3: 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 incr
Slide 4: Value Creation System: Adds Value Through Professional Management of Investments
QUIÑENCO: OVERVIEW Proven Track Record in VALUE CREATION SYSTEM: ADDS VALUE THROUGH PROFESSIONAL Value Creation MANAGEMENT OF ITS INVESTMENTS Acquisition Restructuring Max. Profitability Divest/Retain Acquisitions of companies Restructuring and Develop and maximize • Enersis • Startel administrative
Slide 5: Diversified Investments: One of the Most Diversified Holding Companies in Chile
QUIÑENCO: OVERVIEW Diversified Chile Risk with increasing DIVERSIFIED INVESTMENTS: ONE OF THE MOST DIVERSIFIED International Presence HOLDING COMPANIES IN CHILE Investments by Sector(1) Net Asset Value(2) (NAV) (US$ 7.6 billion as of December 31, 2021) (US$ 7.4 billion as of December 31, 2021) (Perc
Slide 6: Quiñenco Increases Its Stake in CCU, CSAV, and SM SAAM
QUIÑENCO: OVERVIEW QUIÑENCO INCREASES ITS STAKE IN CCU, CSAV, AND SM SAAM CCU +2.9% to 32.9% (IRSA went from 60% to 65.9%) SM SAAM CSAV +7.5% +4.7% to 59.7% to 66.5%
Slide 7: Operating Companies: Other Highlights During 2021
QUIÑENCO: OVERVIEW OPERATING COMPANIES: OTHER HIGHLIGHTS DURING 2021 ➢ First high voltage submarine cable plant in the USA (Charleston) and new cabling vessel Aurora started operations. ➢ Inauguration of nonalcoholic beverage plant in Santiago, Chile. ➢ Created “New-E” division to pursue businesses
Slide 8: Uncertain Times: In Chile and Globally
QUIÑENCO: OVERVIEW UNCERTAIN TIMES: IN CHILE AND GLOBALLY GLOBAL COVID-19 PANDEMIC Group companies have continued focusing on: ➢ Protecting the health and safety of employees and supporting clients. ➢ Operational continuity in order to maintain chain of goods and services. ➢ Preserve financial liqui
Slide 9: 2021 Results
QUIÑENCO: OVERVIEW 2021 RESULTS RESULTS OF MAIN OPERATING COMPANIES CONCLUSIONS
Slide 10: Growing and Diversified Revenues
2021 RESULTS GROWING AND DIVERSIFIED REVENUES Quiñenco’s strategy has led to diversified revenues recovering in 2021 from the greater impact of the pandemic in 2020 Consolidated Revenues(1) Aggregate Revenues by Sector(2) (MUS$) (YTD December 2021) Port Services 2% Financial Services 31.6% 6% Bevera
Slide 11: Sound Results
2021 RESULTS SOUND RESULTS Contribution from all operating companies increased in 2021 Net Income(1) Net Income by Segment(2) (MUS$) (MUS$) 2,241 665.7% 2,241 1,942 894 674 293 227 370 303 132 128 146 293 73 46 31 37 17 10 (24) (84) Energy Transport Port Services Total Manufacturing Financial Servic
Slide 12: Quiñenco's NAV
2021 RESULTS QUIÑENCO’S NAV Financial Debt : MUS$ 1,224 Cash : MUS$ 230 NFD : MUS$ 994 Other Net Assets: MUS$ 16 50% 50% 59.7% 66.5% 99,7% 99,8% IRSA NFD: MUS$257 NFD: MUS$213 51.3% 65.9% 28% 100% Mkt Cap: US$8.0 bln Mkt Cap: US$3.0 bln Mkt Cap: US$650 mln Mkt Cap: US$4.4 bln BV: US$170 mln Mkt Cap:
Slide 13: Strong Growth in NAV
2021 RESULTS STRONG GROWTH IN NAV An average annual compound growth rate of 9% in the net value of Quiñenco’s assets over the past 18 years (1) 7,873 7,366 Quiñenco-NAV(2) 6,858 6,541 6,565 (MUS$) 5,875 6,003 5,789 5,351 5,364 5,137 4,660 3,275 3,071 2,721 1,989 2,028 2,142 1,450 2003 2004 2005 2006
Slide 14: Favorable Performance of NAV, Share Price & Dividends
2021 RESULTS FAVORABLE PERFORMANCE OF NAV, SHARE PRICE & DIVIDENDS NAV(1)/Share Price Trend Dividends Paid 50% as of December 31, 2021 (MCh$) 123,624 NAV: US$7.4 bln 30% 50% 40% 30% 4,000 3,742 3,500 72,172 63,015 53,071 54,370 3,000 2,500 2,000 1,650 1,500 2017 2018 2019 2020 2021 1,000 Percentage
Slide 15: Quiñenco Holding Conservative Financial Structure
QUIÑENCO OVERVIEW QUIÑENCO HOLDING CONSERVATIVE FINANCIAL STRUCTURE Long term investments are financed with equity and long term debt in Chilean pesos . . . Assets Liabilities and Equity US$ 8.0 billion as of Dec/2021 US$ 8.0 billion as of Dec/2021 Cash Other 3% 5% LT Debt ST Debt 15% 0% Other Liabi
Slide 16: Low Financial Corporate Debt
2021 RESULTS LOW FINANCIAL CORPORATE DEBT . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt (MUS$) 1200 0.4 0.35 1000 0.3 800 0.25 600 0.2 0.15 400 0.1 200 0.05 0 0 2017 2018 2019 2020 2021 Net Debt Debt/Capitalization MUS$ 2017 2018 2019 2020 2021
Slide 17: Diversified and Healthy Dividend Cashflow
2021 RESULTS DIVERSIFIED AND HEALTHY DIVIDEND CASHFLOW . . . to the parent company based on good operating company performance Dividends Composition of Dividends (MUS$) (YTD December 2021) 570 SM SAAM 3% IRSA/CCU 18% LQIF/Banco de Chile 169 11% 142 95 77 CSAV/HL 2017 2018 2019 2020 2021 68% CSAV/HL
Slide 18: Quiñenco Announces Dividend Proposal of Approximately US$1.3 Billion
QUIÑENCO : OVERVIEW QUIÑENCO ANNOUNCES DIVIDEND PROPOSAL OF APPROXIMATELY US$1.3 BILLION TO ANNUAL SHAREHOLDERS’ MEETING ➢ Minimum dividend (30% of net income: ~US$700 million • Interim dividend of ~US$350 million distributed in November 2021. • Approx. US$350 million payable as of May 2nd, 2022. ➢
Slide 19: Results of Main Operating Companies
QUIÑENCO: INTRODUCTION 2021 RESULTS RESULTS OF MAIN OPERATING COMPANIES CONCLUSIONS
Slide 20: Main Operating Companies: Banco de Chile
MAIN OPERATING COMPANIES Banco de Chile
Slide 21: Banco de Chile Results
Contribution of Financial Services to MAIN OPERATING COMPANIES Net Income 227 132 2020 2021 Operating Revenues 15.0% ROAE (MUS$) 46.9% 2,640 834 2,295 19.3% 20.2% 18.7% 645 17.5% 567 571 590 12.8% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 2020 2021 2017 2018 2019 2020 2021 Customer Non-Customer Custom
Slide 22: Main Operating Companies: CCU
MAIN OPERATING COMPANIES CCU
Slide 23: CCU Results
Contribution of IRSA in Other to MAIN OPERATING COMPANIES Net Income 69 33 2020 2021 Sales EBITDA* by Business Segment (MUS$) (YTD December 2021) Wine 33.8% 10% 37.1% 2,942 International Business 974 2,199 19% 710 674 737 556 Chile 71% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 2020 2021 * Excludes Oth
Slide 24: Energy and Manufacturing Contribution: Invexans
Contribution of Manufacturing to Contribution of Energy to Net Income MAIN OPERATING COMPANIES Net Income 46 73 17 10 2020 2021 2020 2021 OWNERSHIP STRUCTURE (December 2021) Net Income (MUS$) 22.3% 770.2% 99.8% 135 58 51 45 20 18 16 28.4% 100% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 2020 2021 Note:
Slide 25: Main Operating Companies: Nexans
MAIN OPERATING COMPANIES INexans Nr Baty.
Slide 26: Nexans Results
Contribution of Manufacturing to MAIN OPERATING COMPANIES Net Income 46 17 2020 2021 Sales SALES* BY KEY-END MARKETS (M€) (YTD December 2021) 20.3% 23.3% Other Activities 22% Building & 7.374 Territories 3.735 3.639 5.979 43% 3.026 Industry & Solutions 20% Telecom & Data High Voltage & Projects 4% 1
Slide 27: Main Operating Companies
MAIN OPERATING COMPANIES
Slide 28: Enex Results
Contribution of Energy to Net Income MAIN OPERATING COMPANIES 73 10 2020 2021 Sales SALES MIX Lubricants (MUS$) (December 2021) 3% Fuel 37.4% Industry 71.9% 27% 3.443 2.506 1,084 936 679 743 631 Retail 70% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 2020 2021 Operating Income 388.8% Net Income (MUS$) (M
Slide 29: Main Operating Companies: CSAV and Hapag-Lloyd
MAIN OPERATING COMPANIES BICSAV [em 39 eal eal AD leaflet al apag-Lloyd
Slide 30: CSAV Results
Contribution of Transport to MAIN OPERATING COMPANIES Net Income 1,942 128 2020 2021 Operating Income (Loss) ASSETS BY BUSINESS AREA (MUS$) (December2021) Other 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q2021 2020 2021 5% -3 -5 -5 -6 -10 Hapag- Lloyd -9 95% -23 78.8% 139.6% Non-operating Income (Loss) Net In
Slide 31: Hapag-Lloyd Results
Contribution of Transport to MAIN OPERATING COMPANIES Net Income 1,942 128 2020 2021 Sales TRANSPORTED VOLUME BY TRADE (MUS$) (YTD December 2021) Africa 107.6% 80.8% 4% Atlantic Latin 18% 26,356 America 8,411 26% 7,394 5,648 14,577 Transpacific 4,903 15% 4,052 Intra-Asia 5% Middle East Far East 4Q 2
Slide 32: Main Operating Companies
MAIN OPERATING COMPANIES
Slide 33: SM SAAM Results
Contribution of Port Services to MAIN OPERATING COMPANIES 31 Net Income 37 2020 2021 Sales EBITDA MIX* (MUS$) (YTD December 2021) Logistics 28.1% 26.6% 14% 748 584 188 193 200 158 168 Port terminals Tug boats 37% 49% 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 2020 2021 * Excludes Others. Operating Inco
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 STRONG CASH OPTIMIZATION FINANCIAL STRUCTURE POSITION • Good performance of main • Sound financial indicators • Strong cash levels operating companies • Well struc
Slide 36: Thank You for Your Attention
i JUINENCO S.A, y Q A. THANK YOU FOR YOUR ATTENTION