Quinenco S.A. · BCS:QUINENCO
Quinenco — Investor Presentation (July 2023)
48 slides from Quinenco's investor presentation, July 2023
Slide 1: Investor Presentation July 2023
Investor Presentation July 2023
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
Slide 4: 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$ 122bln US$ 8.8bln 136 74,700 US$ 5.9bln AA+/AA+ Assets under Net Asset Countries(1) Jobs(1) Market Cap(
Slide 5: Diversified Portfolio of Six Main Operating Companies
QUIÑENCO : INTRODUCTION QUIÑENCO: DIVERSIFIED PORTFOLIO OF SIX MAIN OPERATING COMPANIES % Control as of March 2023 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Book Value4 51.3% 65.9% 29.0%2 30.0%3 61.0% 100% US$ 909 mln US$ 10.2bln US$2.7 bln US$ 3.4 bln US$ 33.8 bln US$ 1.0 bln • Leading full serv
Slide 6: Quiñenco Overview
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 7: 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 8: 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. Pedro Marín L. Chief Executive Officer Performance Control Manager Rodrigo Hinzpeter K.
Slide 9: 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 10: Strong Growth in NAV
2022 RESULTS STRONG GROWTH IN NAV … and an average annual compound growth rate of 9% in the net value of Quiñenco’s assets over the past 19 years(1) 8,849 Quiñenco-NAV(2) 7,873 7,366 7,788 (MUS$) 6,858 6,541 6,565 5,789 5,875 6,003 5,351 5,364 5,137 4,660 3,071 3,275 2,721 1,989 2,028 2,142 1,450 20
Slide 11: Favorable Performance of NAV, Share Price & Dividends
2022 RESULTS FAVORABLE PERFORMANCE OF NAV, SHARE PRICE & DIVIDENDS Dividends Paid NAV(1)/Share Price Trend (MCh$) 56% 30% as of March 31, 2023 1,063,492 1,060,597 NAV: US$8.8 bln 40% 30% 50% 4,500 $4,206 4,000 3,500 $3,075 3,000 72,172 63,015 123,624 2,500 2,000 2019 2020 2021 2022 may-23 1,500 Perc
Slide 12: Investment Criteria
QUIÑENCO OVERVIEW Proven Track Record in INVESTMENT CRITERIA Value Creation Based on its investment criteria Brand & consumer Competitive franchise development advantages and potential sufficient critical mass Prior operating or Controlling stakes or industry experience significant influence Access
Slide 13: Leading Market Positions
QUIÑENCO OVERVIEW Dominant Market LEADING MARKET POSITIONS Positions The company’s investment strategy allows it to maintain a leading position in all its business areas and product segments Leading beverage company in Chile #2 Cable company worldwide #2 Beer in Argentina Beverage Manufacturing #2 F
Slide 14: Controlling Interest with World Class Strategic Alliances
QUIÑENCO OVERVIEW Controlling interest & CONTROLLING OR INFLUENTIAL INTEREST ALONG WITH World Class Partners WORLD CLASS STRATEGIC & COMMERCIAL ALLIANCES Quiñenco partners with world class players to develop its markets and products to take advantage of combined know-how, experience and financial ca
Slide 15: Diversified Investments
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing DIVERSIFIED INVESTMENTS International Presence Becoming one of the most diversified holding companies in Chile . . . Investments by Sector(1) Net Asset Value(2) (NAV) (as of March 31, 2023) (as of March 31, 2023) (Percentages calculated over g
Slide 16: Growing and Diversified Revenues
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing GROWING AND DIVERSIFIED REVENUES International Presence . . . achieving diversified and growing revenues . . . Consolidated Revenues(1) Aggregate Revenues by Sector(2) (MUS$) (YTD March 2023) Financial Port Services 10,132 Services 1% 7% Bever
Slide 17: Sound Results: Net Income
QUIÑENCO OVERVIEW Sound Financial SOUND RESULTS Position . . . and sound bottom line results Net Income(1) (MUS$) 2021 2022 4,473 4,074 2,395 2,075 4,473 49 92 243 430 78 101 40 27 (90) (251) Transport Manufacturing Port Services Financial Energy Total Other(2) 2,395 -51.4% Mar-22 Mar-23 1,059 1,059
Slide 18: 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$12.3 billion as of March 2023 US$12.3 billion as of March 2023 Cash ST Debt 6% LT Deb
Slide 19: Low Financial Corporate Debt
QUIÑENCO OVERVIEW Sound Financial LOW FINANCIAL CORPORATE DEBT Position . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt (MUS$) 1,200 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 Mar-23 Net Debt Debt/Capitalizat
Slide 20: Conservative Maturity Profile
QUIÑENCO OVERVIEW Sound Financial CONSERVATIVE MATURITY PROFILE Position . . . Quiñenco's individual debt maturity profile is stable and conservative Maturity Profile of Quiñenco’s bonds (MUS$) 120 100 80 60 40 20 - 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039
Slide 21: Diversified and Healthy Dividend Cashflow
QUIÑENCO OVERVIEW Sound Financial DIVERSIFIED AND HEALTHY DIVIDEND CASHFLOW Position . . . to the parent company based on good operating company performance Dividends Composition of Dividends (MUS$) (YTD May 2023) NEXANS SM SAAM 1% SM SAAM Banchile Vida IRSA/CCU LQIF/Banco de Chile CSAV/HL Nexans Ot
Slide 22: 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 23: Recent Events
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 24: Quiñenco Places Bonds and Distributes US$1.3 Billion in Dividends
RECENT EVENTS QUIÑENCO PLACES BONDS ON LOCAL MARKET AND DISTRIBUTES US$1.3 BILLION IN DIVIDENDS • On January 18, 2023, Quiñenco placed UF 5 million, equivalent to approximately US$215 million, on the local market. One series was issued, with a maturity of 28 years and a 25-year grace period, at an a
Slide 25: SM SAAM and Hapag-Lloyd 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 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: Nexans Completes Acquisition of Reka Cables
RECENT EVENTS NEXANS COMPLETES ACQUISITION OF REKA CABLES IN THE NORDICS • On April 26, 2023, Nexans announced the completion of the acquisition of Reka Cables, a manufacturer of low and medium voltage cables, following regulatory approvals. • Through this acquisition Nexans expects to strengthen it
Slide 28: Enex Opens New Road Ranger Travel Center in Texas
RECENT EVENTS ENEX OPENS NEW ROAD RANGER TRAVEL CENTER IN TEXAS, USA, EXPANDING 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 29: CCU and Enex Establish New Partnerships in Paraguay
RECENT EVENTS CCU AND ENEX ESTABLISH NEW PARTNERSHIPS IN PARAGUAY • On March 16, 2023, CCU and Enex separately informed the entrance of Banco Sudameris as a new partner in their respective operations in Paraguay. • CCU: in Bebidas del Paraguay and Distribuidora del Paraguay, CCU now controls 55% own
Slide 30: Invexans Sells 1/3 of Its Stake in Nexans
RECENT EVENTS INVEXANS SELLS 1/3 OF ITS STAKE IN NEXANS • On April 5, 2023, Invexans Limited, indirect subsidiary of Quiñenco, successfully completed the sale of 4,203,638 shares of Nexans, through an accelerated book-building offering, at a price of €80 per share. • Thus, the transaction totaled US
Slide 31: Conclusions
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 32: 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 33: Thank You for Your Attention
Ez QUINENCO S.A, a: _ THANK YOU FOR YOUR ATTENTION
Slide 34: Appendix: Main Operating Companies
APPENDIX MAIN OPERATING COMPANIES
Slide 35: 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$65 billion. • Over 12,500 employees • Nationwide network of 266 branches and 1,810 ATMs. • Traded on the NY
Slide 36: Banco de Chile Financial Results
Contribution of Financial Services to MAIN OPERATING COMPANIES Net income in 1Q 2023 impacted by higher Quiñenco’s Net Income (MUS$) operating expenses, largely due to the effects of 94 86 inflation, partly offset by growth in operating revenues. mar-22 mar-23 Operating Revenues ROAE 31.4% (MUS$) 3,
Slide 37: 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$4.2 billion. • Over 10,500 employees. • 35 beverage fa
Slide 38: CCU Financial Results
CCU´s net income declined in 1Q 2023, mainly due to a Contribution of IRSA in Other to MAIN OPERATING COMPANIES contraction in exports in the Wine segment, mostly mitigated Quiñenco´s Net Income (MUS$) by improved results in the Chile and International Business 24 23 segments, thanks to revenue mana
Slide 39: Nexans Overview
MAIN OPERATING COMPANIES • Nexans is a worldwide leader in the cable industry with an industrial footprint in 42 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 40: Nexans Financial Results
Contribution of Manufacturing to Nexans’ net income in 2022 grew 49%, based on MAIN OPERATING COMPANIES improved operating performance across the board, and Quiñenco´s Net Income (MUS$) 92 especially in business segments related to electrification. 49 2021 2022 Sales EBITDA* by Business Segment (M€)
Slide 41: Enex: Ownership Structure
MAIN OPERATING COMPANIES • Enex S.A. has a network of 447 service stations, with 208 convenience stores in Chile, 45 travel centers in the USA and 75 service stations in Paraguay. • Main business activities: Distribution of fuels through its service stations. Distribution of fuels to industrial
Slide 42: Enex Financial Results
Contribution of Energy to Quiñenco’s Enex’s contribution was down by 37.1% in 1Q 2023, MAIN OPERATING COMPANIES Net Income (MUS$) mainly due to a negative impact of inventory revaluation 28 and higher operating expenses, despite growth in 18 revenues. Mar-22 Mar-23 Sales SALES MIX (MUS$) Retail USA
Slide 43: 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 2022 were US$10.3 billion. • In November 2015 Hapag-Lloyd ca
Slide 44: CSAV Financial Results
CSAV’s 1Q 2023 results mainly reflect its share in Hapag- Contribution of Transport to MAIN OPERATING COMPANIES Lloyd’s lower performance during the period. Quiñenco’s Net Income (MUS$) 953 408 Mar-22 Mar-23 Operating Income (Loss) (MUS$) -4 -5 -8 -10 -23 -38 2019 2020 2021 2022 YTD Mar-22 YTD Mar-2
Slide 45: Hapag-Lloyd: Transported Volume by Trade
Hapag-Lloyd´s 1Q 2023 results down by 56,7%. In a scenario of Contribution of Transport to MAIN OPERATING COMPANIES weaker demand for transport in containers since the end of 2022, and Quiñenco’s Net Income (MUS$) a normalization of global supply chains, Hapag-Lloyd’s average 953 freight rates decli
Slide 46: SM SAAM: Ownership Structure
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 90 ports in America. • SM SAAM currently operates 10 port terminals and a f
Slide 47: SM SAAM Financial Results
SM SAAM’s lower results in 1Q 2023 are attributable to the Contribution of Port Services to MAIN OPERATING COMPANIES decline in performance of port terminals and land logistics in Quiñenco’s Net Income (MUS$) 14 discontinued operations, affected by lower activity, whereas 10 continued operations ach
Slide 48: Slide 48