Quinenco S.A. · BCS:QUINENCO
Quinenco — Investor Presentation (October 2022)
51 slides from Quinenco's investor presentation, October 2022
Slide 1: Investor Presentation October 2022
Investor Presentation October 2022
Slide 2: Quiñenco at a Glance
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 3: Ownership Structure
QUIÑENCO AT A GLANCE OWNERSHIP STRUCTURE 83% 17% Luksic Industrial / Financial Minority Shareholders Group Services (Chilean Stock Exchanges) 65% Market Mining Listed on London Capitalization Stock Exchange US$3.6(1) billion (1) Market Capitalization as of September 30, 2022. 3
Slide 4: Quiñenco: Key Figures
QUIÑENCO AT A GLANCE QUIÑENCO: KEY FIGURES Diversified business conglomerate with increasing presence worldwide AGGREGATE ANNUAL ASSETS UNDER US$105 US$45 REVENUES OF MAIN MANAGEMENT bln bln OPERATING COMPANIES 138 70k 3 companies AA /AA+ COUNTRIES JOBS DJSI CHILE CREDIT RATING Quiñenco, through its
Slide 5: Diversified Portfolio of Six Main Operating Companies
QUIÑENCO : INTRODUCTION QUIÑENCO: DIVERSIFIED PORTFOLIO OF SIX MAIN OPERATING COMPANIES % Control as of June 2022 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Book Value5 51.3% 65.9%2 29.2%3 30.0%4 59.7% 100% US$ 770 mln US$ 9.0bln US$ 2.0 bln US$ 3.9 bln US$ 30.1 bln US$ 574 mln • 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: 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 9: Over 60 Years of History and Experience
QUIÑENCO OVERVIEW Proven Track Record in OVER 60 YEARS OF HISTORY AND EXPERIENCE Value Creation Sociedad Forestal Quiñenco S.A. is Banco Chile and Banco Edwards Quiñenco acquires 20.6% stake in Enex acquires 51% of Gasur in 1957 created. merge. shipping company CSAV and later Paraguay. increases it
Slide 10: 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 11: Corporate Level Transactions
QUIÑENCO OVERVIEW Proven Track Record in CORPORATE LEVEL TRANSACTIONS Value Creation . . . which has led to various transactions throughout its history, generating US$1.6 billion in profits over the last 25 years from divestments of US$3.9 billion . . . US$ 843 US$ 673 (plus US$286 mln 1 credit to e
Slide 12: Strong Growth in NAV
QUIÑENCO OVERVIEW Proven Track Record in STRONG GROWTH IN NAV Value Creation . . . and an average annual compound growth rate of 9% in the net value of Quiñenco’s assets over the past 18 ½ years(1) 7,873 7,337 7,366 Quiñenco-NAV(2) 6,858 6,541 6,565 (MUS$) 5,875 6,003 5,789 5,351 5,364 5,137 4,660 3
Slide 13: Favorable Performance of NAV, Share Price & Dividends
QUIÑENCO OVERVIEW Proven Track Record in FAVORABLE PERFORMANCE OF NAV, Value Creation SHARE PRICE & DIVIDENDS Dividends Paid NAV(1)/Share Price Trend (MCh$) 56% as of June 30, 2022 1,063,492 4,500 NAV: US$7.3 bln 4,113 50% 4,000 50% 40% 30% 3,500 3,000 72,172 123,624 2,500 2,250 54,370 63,015 2,000
Slide 14: Investment Criteria
QUIÑENCO OVERVIEW Proven Track Record in INVESTMENT CRITERIA Value Creation Based on its investment criteria Brand & consumer Sufficient critical franchise development mass potential Prior operating or Controlling stakes industry experience Access to strategic Growth platform or add- partners / comm
Slide 15: Leading Market Positions
QUIÑENCO OVERVIEW Dominant Market LEADING MARKET POSITIONS Positions The company’s investment strategy allows it to maintain a leading position in all its business areas and product segments Leading beverage company in Chile #2 Cable company worldwide #2 Beer in Argentina Beverage Manufacturing #2 F
Slide 16: Controlling or Influential Interest Along with World Class Alliances
QUIÑENCO OVERVIEW Controlling interest & CONTROLLING OR INFLUENTIAL INTEREST ALONG WITH World Class Partners WORLD CLASS STRATEGIC & COMMERCIAL ALLIANCES Quiñenco partners with world class players to develop its markets and products to take advantage of combined know-how, experience and financial ca
Slide 17: Diversified Investments
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing DIVERSIFIED INVESTMENTS International Presence Becoming one of the most diversified holding companies in Chile . . . Investments by Sector(1) Net Asset Value(2) (NAV) (US$ 8.3 billion as of June 30, 2022) (US$ 7.3 billion as of June 30, 2022)
Slide 18: Growing and Diversified Revenues
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing GROWING AND DIVERSIFIED REVENUES International Presence . . . achieving diversified revenues recovering in 2021 from the greater impact of the global pandemic in 2020 Consolidated Revenues(1) Aggregate Revenues by Sector(2) (MUS$) (YTD June 20
Slide 19: Sound Results
QUIÑENCO OVERVIEW Sound Financial SOUND RESULTS Position Sound bottom line results Net Income(1) Net Income(2) (MUS$) (YTD June 2022, MUS$) 203.4% 2,031 1,851 1,851 1,638 610 484 610 225 265 194 188 58 85 20 36 49 21 14 2018 2019 2020 2021 jun-21 jun-22 Other (3) . Energy Transport Port Services Tot
Slide 20: 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$8.9 billion as of June 2022 US$8.9 billion as of June 2022 Cash ST Debt Other LT Debt
Slide 21: Low Financial Corporate Debt
QUIÑENCO OVERVIEW Sound Financial LOW FINANCIAL CORPORATE DEBT Position . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt (MUS$) 1,000 0.4 900 0.35 800 0.3 700 600 0.25 500 0.2 400 0.15 300 0.1 200 100 0.05 - 0 2018 2019 2020 2021 jun-22 Net Debt De
Slide 22: 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 June 2022) 1,011 SM SAAM LQIF/Banco de 3% Chile 13% IRSA/CCU 2% 517 153 129 86 2018 2019 2020 20
Slide 23: 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 24: Recent Events
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 25: 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 26: SM SAAM and Hapag-Lloyd Transaction (continued)
RECENT EVENTS SM SAAM AND HAPAG-LLOYD ANNOUNCE US$1 BILLION TRANSACTION INVOLVING PORT TERMINALS AND LAND LOGISTICS • SM SAAM estimates a net after tax gain of US$400 million. • The transaction was approved unanimously by SM SAAM’s directors without conflict of interest, that is, not related to the
Slide 27: SM SAAM and Hapag-Lloyd Transaction: Hapag-Lloyd Strategy
RECENT EVENTS SM SAAM AND HAPAG-LLOYD ANNOUNCE US$1 BILLION TRANSACTION INVOLVING PORT TERMINALS AND LAND LOGISTICS • Hapag-Lloyd has stated that investing in terminal infrastructure is a key element of its strategy, and particularly in Latin America where it holds a strong presence. • Hapag-Lloyd e
Slide 28: CSAV and Hapag-Lloyd Distribute Significant Dividends
RECENT EVENTS CSAV AND HAPAG-LLOYD DISTRIBUTE SIGNIFICANT DIVIDENDS TO SHAREHOLDERS • During 2022, shareholders approved a final dividend of approximately €1.3 billion, divided in: ➢ US$963 million equivalent to 30% of 2021 net income (of which US$450 million were paid in October 2021), paid during
Slide 29: Quiñenco Distributes Dividends of Approximately US$1.3 Billion
RECENT EVENTS QUIÑENCO DISTRIBUTES DIVIDENDS OF APPROXIMATELY US$1.3 BILLION TO SHAREHOLDERS FROM 2021 NET INCOME ➢ Minimum dividend (30% of net income): ~US$700 million • Interim dividend of ~US$350 million distributed in November 2021. • ~US$350 million paid in May 2022. ➢ Additional dividend of €
Slide 30: 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 31: 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 business, under the brands Villavicencio, Villa del Sur, Levité, Ser
Slide 32: Nexans Completes Acquisition of Centelsa
RECENT EVENTS NEXANS COMPLETES ACQUISITION OF COLOMBIAN CABLE MANUFACTURER CENTELSA • On April 1, 2022, Nexans announced the acquisition of Centelsa, a cable manufacturer in Latin America, based in Colombia, per the agreement signed in September 2021 with the Mexican group Xignux. • Centelsa, with m
Slide 33: Conclusions
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 34: 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 35: Thank You for Your Attention
E QUINENCO S.A. a: ~ THANK YOU FOR YOUR ATTENTION
Slide 36: Appendix: Main Operating Companies
APPENDIX MAIN OPERATING COMPANIES
Slide 37: 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$65 billion. • Over 12,200 employees • Nationwide network of 272 branches and 1,761 ATMs. • Traded on the NY
Slide 38: Banco de Chile Financial Results
Contribution of Financial Services to MAIN OPERATING COMPANIES Net income in 1H 2022 boosted by higher revenues, Quiñenco´s Net Income largely due to higher inflation and growth in 198 customer income, partly offset by higher loan loss 89 provisions. jun-21 jun-22 33.5% ROAE Operating Revenues (MUS$
Slide 39: 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$3.4 billion. • Over 9,000 employees. • 33 beverage fac
Slide 40: CCU Sales, EBITDA and Net Income
Results down in 1H 2022, mainly due to negative impact Contribution of IRSA in Other to MAIN OPERATING COMPANIES on costs of external factors, namely higher costs of raw Quiñenco´s Net Income 26 materials, depreciation of local currencies, and inflation. 12 These effects were partly offset by revenu
Slide 41: Invexans: Ownership Structure
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 42: Invexans Operating and Net Income
Contribution of Manufacturing to Contribution of Energy to Quiñenco´s MAIN OPERATING COMPANIES Quiñenco´s Net Income 58 Net Income 49 36 20 jun-21 jun-22 jun-21 jun-22 Invexans’ results reflect positive performance of both Operating Income (Loss) its main assets, Nexans and Enex during the semester.
Slide 43: Nexans Sales by Key End Markets
Contribution of Manufacturing to Nexans more than doubled its net income in 1H 2022, Quiñenco´s Net Income MAIN OPERATING COMPANIES based on improved operating performance across the 58 board, and especially in business segments related to 20 electrification. jun-21 jun-22 SALES* BY KEY-END MARKETS
Slide 44: Enex: Ownership Structure
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 45: Enex Sales, Sales Mix and Net Income
Contribution of Energy to Quiñenco´s MAIN OPERATING COMPANIES Enex’s positive evolution in 1H 2022 reflects strong Net Income operating results, based on growth in sales volumes, 36 49 and also inventory revaluation gains. jun-21 jun-22 Sales (MUS$) SALES MIX Lubricants (December 2021) 3% Fuel 3,120
Slide 46: 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 2021 were US$6.0 billion. • In November 2015 Hapag-Lloyd car
Slide 47: CSAV Operating and Net Income
CSAV’s outstanding results in 1H 2022 reflect its share in Contribution of Transport to MAIN OPERATING COMPANIES Hapag-Lloyd’s performance during the period. At the Quiñenco´s Net Income 1,638 corporate level, CSAV reported higher administrative 484 expenses. jun-21 jun-22 Operating Income (Loss) (M
Slide 48: Hapag-Lloyd Transported Volume by Trade
Hapag-Lloyd posted a substantial increase in 1H 2022 Contribution of Transport to MAIN OPERATING COMPANIES results. Strong demand for consumer goods and Quiñenco´s Net Income 1,638 sustained disruptions in global supply chains, led to an 484 industry-wide increase of average freight rates, and of 77
Slide 49: 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 88 ports in America. • SM SAAM currently operates 10 port terminals and a f
Slide 50: SM SAAM Sales, EBITDA Mix and Net Income
Contribution of Port Services to SM SAAM’s positive results in 1H 2022 are based on good MAIN OPERATING COMPANIES performance of port terminals and logistics, despite cost Quiñenco´s Net Income 21 pressures from inflation and higher fuel prices, as a result 14 of a better mix of services, growth in
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