Quinenco S.A. · BCS:QUINENCO
Quinenco — Investor Presentation (December 2022)
44 slides from Quinenco's investor presentation, December 2022
Slide 1: Investor Presentation December 2022
Investor Presentation December 2022
Slide 2: Quiñenco at a Glance
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 3: Quiñenco at a Glance: 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$ 105bln US$ 6.7bln 138 70,000 US$ 5.0bln AA/AA+ Assets under Net Asset Countries(1) Jobs(1) Market Cap(3
Slide 4: Quiñenco: Diversified Portfolio of Six Main Operating Companies
QUIÑENCO : INTRODUCTION QUIÑENCO: DIVERSIFIED PORTFOLIO OF SIX MAIN OPERATING COMPANIES % Control as of September 2022 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Book Value5 51.3% 65.9%2 29.2%3 30.0%4 59.7% 100% US$ 790 mln US$ 9.5bln US$ 2.2 bln US$ 3.8 bln US$ 36.7 bln US$ 1.0 bln • Leading full
Slide 5: Quiñenco Overview
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 6: Quiñenco: 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 7: 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. Alvaro Sapag R. Chief Executive Officer Sustainability Manager Rodrigo Hinzpeter K. Pedr
Slide 8: 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 9: 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 10: 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 11: Controlling or Influential Interest Along with World Class Partners
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 12: 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 September 30, 2022) (as of September 30, 2022) (Percentages calculate
Slide 13: 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$) (YTD September 2022) 56.9% Financial Port Services Services 5,715 1%
Slide 14: Sound Results
QUIÑENCO OVERVIEW Sound Financial SOUND RESULTS Position . . . and sound bottom line results Net Income(1) Net Income(2) (MUS$) (MUS$) 138.6% YTD Sep-21 YTD Sep-22 2,829 2,829 2,583 1,972 1,185 1,010 1,185 267 129 17 57 49 67 22 14 (40)(159) 188 219 257 Transport Financial Energy Port Services Total
Slide 15: 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$9.9 billion as of September 2022 US$9.9 billion as of September 2022 Cash ST Debt 3%
Slide 16: Low Financial Corporate Debt
QUIÑENCO OVERVIEW Sound Financial LOW FINANCIAL CORPORATE DEBT Position . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt (MUS$) 1,000 0.4 0.35 800 0.3 600 0.25 0.2 400 0.15 0.1 200 0.05 - 0 2018 2019 2020 2021 Sep-22 Net Debt Debt/Capitalization(1)
Slide 17: 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$) (YTD September 2022) SM SAAM Banchile Vida IRSA/CCU LQIF/Banco de Chile CSAV/HL SM SAAM LQIF/Banco de
Slide 18: Conservative Maturity Profile
QUIÑENCO OVERVIEW Sound Financial CONSERVATIVE MATURITY PROFILE Position . . . Quiñenco's individual debt maturity profile is stable and conservative Financial Debt Maturity Profile (MUS$) 100 90 80 70 60 50 40 30 20 10 - 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 203
Slide 19: 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 20: Recent Events
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 21: SM SAAM and Hapag-Lloyd Announce US$1 Billion Transaction
RECENT EVENTS SM SAAM AND HAPAG-LLOYD ANNOUNCE US$1 BILLION TRANSACTION INVOLVING PORT TERMINALS AND LAND LOGISTICS • On October 6, 2022, SM SAAM and Hapag-Lloyd signed a binding agreement through which SM SAAM sells its entire port terminals and associated logistics services to the German shipping
Slide 22: SM SAAM Continues Strengthening Tug Boat Division
RECENT EVENTS SM SAAM CONTINUES STRENGTHENING TUG BOAT DIVISION • On May 6, 2022, SM SAAM (through SAAM Towage Brasil) signed an agreement with Brazilian company Starnav to acquire 17 tug boats currently in operations in Brazil. In addition, 4 tug boats under construction also are part of the agreem
Slide 23: Nexans Completes Acquisition of Colombian Cable Manufacturer Centelsa
RECENT EVENTS NEXANS COMPLETES ACQUISITION OF COLOMBIAN CABLE MANUFACTURER CENTELSA • On November 10, 2022, Nexans announced an agreement with Reka Industrial Plc to acquire Reka Cables, a manufacturer of low and medium voltage cables, for an equity price of €53 million, including a financial net de
Slide 24: Enex Opens New Road Ranger Travel Center in Texas
RECENT EVENTS ENEX OPENS NEW ROAD RANGER TRAVEL CENTER IN TEXAS, USA, EXPENDING ITS PRESENCE IN THAT COUNTRY • During November 2022, Road Ranger, Enex’s network of highway travel centers in the USA, inaugurated a new station in New Deal, Texas, thus increasing its network to a total of 45 travel cen
Slide 25: Strategic Alliance Between CCU Argentina and Aguas Danone Argentina
RECENT EVENTS STRATEGIC ALLIANCE BETWEEN CCU ARGENTINA AND AGUAS DANONE ARGENTINA • On April 28, 2022, CCU announced the acquisition of 49% of Aguas Danone Argentina, including its mineral water, flavored water and powdered juice businesses, under the Villavicencio, Villa del Sur, Levité, Ser and Br
Slide 26: Conclusions
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 27: 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 28: Thank You for Your Attention
E QUINENCO S.A. a: ~ THANK YOU FOR YOUR ATTENTION
Slide 29: Appendix: Main Operating Companies
APPENDIX MAIN OPERATING COMPANIES
Slide 30: Banco de Chile
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$65 billion. • Over 12,200 employees • Nationwide network of 272 branches and 1,761 ATMs. • Traded on the NY
Slide 31: Banco de Chile Financial Results
Contribution of Financial Services to MAIN OPERATING COMPANIES Net income as of September 2022 boosted by Quiñenco’s Net Income (MUS$) higher revenues, largely due to higher inflation and 267 129 growth in customer income, partly offset by higher loan loss provisions. YTD Sep-21 YTD Sep-22 Operating
Slide 32: CCU
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$3.4 billion. • Over 9,000 employees. • 33 beverage fac
Slide 33: CCU Financial Results
YTD September 2022 results down, mainly due to the Contribution of IRSA in Other to MAIN OPERATING COMPANIES negative impact on costs of external factors, namely Quiñenco´s Net Income (MUS$) 38 higher costs of raw materials, depreciation of local 14 currencies, and inflation. These effects were part
Slide 34: Invexans
MAIN OPERATING COMPANIES • Invexans’ main asset until early 2020 was its stake in Nexans, a leading cable manufacturer with worldwide presence, based in France. Since April 2020, Invexans also holds 100% ownership of Enex, a fuel distribution company with presence in Chile, the USA and Paraguay. • A
Slide 35: Invexans Financial Results
Contribution of Manufacturing to Contribution of Energy to Quiñenco’s MAIN OPERATING COMPANIES Quiñenco´s Net Income (MUS$) Net Income (MUS$) 57 67 49 17 YTD Sep-21 YTD Sep-22 YTD Sep-21 YTD Sep-22 Invexans’ results reflect positive performance of both Operating Income (Loss) 27.9% its main assets,
Slide 36: Nexans: Sales by Key End Markets
Contribution of Manufacturing to Nexans more than doubled its net income in 1H 2022, Quiñenco’s Net Income (MUS$) MAIN OPERATING COMPANIES based on improved operating performance across the 57 board, and especially in business segments related to 17 electrification. YTD Sep-21 YTD Sep-22 SALES* BY K
Slide 37: Enex
MAIN OPERATING COMPANIES • Enex S.A. has a network of 445 service stations, with 185 convenience stores in Chile, 42 travel centers in the USA and 55 service stations in Paraguay. • Main business activities: ➢ Distribution of fuels through its service stations. ➢ Distribution of fuels to industrial
Slide 38: Enex Financial Results
Contribution of Energy to Quiñenco’s Enex’s positive evolution YTD September 2022 reflects MAIN OPERATING COMPANIES Net Income (MUS$) strong operating results, based on growth in sales 67 49 volumes, and also inventory revaluation gains, overcoming higher expenses due to inflation and higher transpo
Slide 39: CSAV
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 2021 were US$6.0 billion. • In November 2015 Hapag-Lloyd car
Slide 40: CSAV Financial Results
CSAV’s outstanding YTD September 2022 results reflect Contribution of Transport to MAIN OPERATING COMPANIES its share in Hapag-Lloyd’s performance during the period. Quiñenco’s Net Income (MUS$) At the corporate level, CSAV reported higher 2,583 1,010 administrative expenses. YTD Sep-21 YTD Sep-22 O
Slide 41: Hapag-Lloyd: Transported Volume by Trade
Hapag-Lloyd posted a substantial increase in YTD September Contribution of Transport to MAIN OPERATING COMPANIES 2022 results. Strong demand for consumer goods and sustained Quiñenco’s Net Income (MUS$) disruptions in global supply chains, led to an industry-wide 2,583 increase of average freight ra
Slide 42: SM SAAM
MAIN OPERATING COMPANIES • SM SAAM is dedicated to port services and management of port concessions, including three main business areas: port terminals, tug boats, and logistics. • SM SAAM has a presence in 14 countries and 88 ports in America. • SM SAAM currently operates 10 port terminals and a f
Slide 43: SM SAAM Financial Results
SM SAAM’s lower results YTD September 2022 are Contribution of Port Services to MAIN OPERATING COMPANIES attributable to the accounting effect of a deferred tax expense Quiñenco’s Net Income (MUS$) associated with the transaction with Hapag-Lloyd. Excluding 22 14 that effect, net income would have i
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