Slide 1: Corporate Presentation
CORPORATE PRESENTATION
Slide 2: Overview
OVERVIEW 2
Slide 3: Overview: leading Latin American-owned IT services provider
OVERVIEW SONDA IS THE LEADING LATIN AMERICAN-OWNED IT Revenue Breakdown (2016) SERVICES PROVIDER Founded in 1974 and headquartered in Santiago, Chile Presence in 10 countries in the region with main operations in Chile, Brazil and Mexico • Nearly 18,500 employees regionally • Ability to deliver serv
Slide 4: Successful growth history
SUCCESFUL GROWTH HISTORY 2016 1974 2006 - 2015 • Acquisition of 60% of the SONDA Foundation Regional Consolidation Brazilian company Ativas, which 1984 – 2005 1974 – 1983 International Expansion • IPO (2006) provides a state-of-the-art data • First full outsourcing • Start operations in Peru, • Paym
Slide 5: Value proposition
VALUE PROPOSITION SONDA IS FOCUSED ON SATISFYING CUSTOMERS’ BUSINESS NEEDS THROUGH A WIDE RANGE OF SERVICES AND SOLUTIONS BASED ON INFORMATION TECHNOLOGIES. IT SERVICES APPLICATIONS PLATFORMS Full IT Outsourcing Cross Market Solutions Value Solutions Infrastructure Support Manufacturing Software Pro
Slide 6: Company Highlights
COMPANY HIGHLIGHTS 6
Slide 7: Company Highlights
COMPANY HIGHLIGHTS Presence in a Integrated Experienced growing and one-stop shop management Leading underpenetrated Diversified business model Solid track team backed by Opportunity to Latin-American market blue-chip record of a strong board continue IT services customer base financial with solid g
Slide 8: Leading Latin-American IT services company
LEADING LATIN-AMERICAN IT SERVICES COMPANY 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 long-term relationships with corporate clients Presence in 10 countries
Slide 9: Presence in a growing and underpenetrated market
PRESENCE IN A GROWING AND UNDERPENETRATED MARKET LATIN AMERICA, ONE OF THE FASTEST GROWING REGIONS IN THE WORLD IT Spending as a Percentage of GDP (December 2015) • In Latin America, IT spending as a percentage of GDP is between 1.0% and 2.0%. • In developed economies, IT spending as a percentage of
Slide 10: Presence in a growing and underpenetrated market: IT spending
PRESENCE IN A GROWING AND UNDERPENETRATED MARKET Latin America IT Spending Patterns (US$ millions) Platforms 2015 2016 2017 2018 2019 2020 Chile 1,778 1,782.0 1,725.8 1,761.1 1,753.8 1,793.3 Brazil 9,159 7,614.4 7,827.1 7,889.9 7,940.8 7,983.1 Mexico 5,897 6,086.3 5,836.0 5,829.3 5,825.4 5,868.9 Res
Slide 11: Diversified blue-chip customer base
DIVERSIFIED BLUE-CHIP COSTUMER BASE Client focus on blue-chip companies Revenue Breakdown (December 31, 2016) • Large and medium size companies • Regional clients Long term relationship with clients • Multiyear contracts lasting on average 3 years • Significant cross-selling • 60% of revenues derive
Slide 12: Integrated one-stop shop business model
INTEGRATED ONE-STOP SHOP BUSINESS MODEL Wide Range of Products and Services • Unparallel capacity to deliver IT services through all the region Strategic Consulting IT Consulting • Independent IT services provider with no BPO / ASP restrains to offer the best technological solution available IT Outs
Slide 13: Solid track record of financial performance
SOLID TRACK RECORD OF FINANCIAL PERFORMANCE Solid growth on the back of stable margins … • SONDA has been profitable every year since it was founded in 1974 • The Company has been able to maintain strong growth throughout the years Revenue (US$ millions) EBITDA (US$ millions) Note: Financial data tr
Slide 14: Solid track record of financial performance: profitability, leverage, dividends
SOLID TRACK RECORD OF FINANCIAL PERFORMANCE …coupled with profitability, low leverage and steady dividend payout ratio Net Income (US$ millions) Net Debt / EBITDA1 Capex (US$ millions) Dividend Payout Ratio2 Note: Financial data translated to US$ using the end of period exchange rate for 2016 669.47
Slide 15: Experienced management team
EXPERIENCED MANAGEMENT TEAM STRONG BOARD WITH SOLID CORPORATE GOVERNANCE • 4 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 Years at Name Selected Background Name Position Education SONDA Ind
Slide 16: Opportunity to continue growing: triennial investment plans
OPPORTUNITY TO CONTINUE GROWING SUCCESFULL TRIENNIAL INVESTMENTS PLANS EXECUTED IN THE PAST Since 2007, SONDA has invested around US$360 mm in Capex for organic growth and approx. US$ 610 mm in acquisitions SONDA’s Triennial Investment Plans Capex Capex 32% US$ Capex US$ US$ 40% M&A 46% 250mm¹ 442mm
Slide 17: Clear M&A strategy, backed by solid execution
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 s
Slide 18: Investment plan 2016-2018
OPPORTUNITY TO CONTINUE GROWING INVESTMENT PLAN 2016-2018 Investment Plan Breakdown Organic Growth • Develop large Systems Integration and Outsourcing contracts 68% US$ 250 32% • Continually updating services incorporating new technologies (i.e. MM Cloud, SaaS/IaaS/PaaS, Mobility, IoT, Smart Cities,
Slide 19: Financial Review
oy” FINANCIAL REVIEW 19
Slide 20: Revenue and EBITDA
REVENUE AND EBITDA Consolidated Revenue (US$ millions) 20 Note: Financial data translated to US$ using the end of period exchange rate for 2016 $669.47 CLP/USD
Slide 21: Revenue and EBITDA margin: Chile and ex-Chile
REVENUE AND EBITDA MARGIN Chile Revenue Ex-Chile Revenue 21 Note: Financial data translated to US$ using the end of period exchange rate for 2016 $669.47 CLP/USD
Slide 22: Revenue and EBITDA margin: Brazil, OPLA, Mexico
REVENUE AND EBITDA MARGIN Brazil Revenue OPLA Revenue Mexico Revenue 22 Note: Financial data translated to US$ using the end of period exchange rate for 2016 $669.47 CLP/USD
Slide 23: Summary income statement
SUMMARY INCOME STATEMENT Fiscal Year Ended December 31, 2011 – 2016 (US$ millions) 2011 2012 2013 2014 2015 2016 CAGR TOTAL REVENUES 885.5 1,017.5 1,004.2 1,312.2 1,331.1 1,219.1 6.6% Growth (%) 33.1% 14.9% -1.3% 30.7% 1.4% -8.4% Gross Profit 185.4 218.9 212.2 235.6 256.6 216.0 3.1% Margin (%) 20.9%
Slide 24: Summary balance sheet
SUMMARY BALANCE SHEET Fiscal Year Ended December 31, (US$ millions) 2011 2012 2013 2014 2015 2016 Cash and Equivalents 49.2 91.6 255.2 117.4 102.2 96.2 Short-term Investments 2.1 9.9 7.6 4.5 2.6 40.5 Current Accounts Receivable 265.6 258.9 217.0 338.1 351.6 301.3 PP&E 114.9 133.1 136.3 148.8 142.6 1
Slide 25: Summary cash flow statement
SUMMARY CASH FLOW STATEMENT Fiscal Year Ended December 31, (US$ millions) 2011 2012 2013 2014 2015 2016 NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES 50 133.9 140.0 99.8 76.5 100.9 Capex (87) (144.2) (26.4) (140.6) (43.1) (77.1) Purchase of property, plant and equipment (38) (55.9) (24.3) (15.7
Slide 26: Appendix
APPENDIX 26
Slide 27: Ownership structure
OWNERSHIP STRUCTURE 27 Ownership structure as of December 31, 2016
Slide 28: Investor relations contact
investor.relations@sonda.com Phone (56) 22 657 5302 Teatinos 500, Santiago, CHILE www.SONDA.com