Quinenco S.A. · BCS:QUINENCO
Quinenco — Investor Presentation (January 2012)
25 slides from Quinenco's investor presentation, January 2012
Slide 1: QUIÑENCO S.A.
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Slide 2: Quiñenco
Quiñenco Quiñenco is one of Chile’s largest business conglomerates with US$42 billion in assets under management Companies managed by Quiñenco generated sales revenue of US$4.7 billion in 2010 The Quiñenco group of companies employs over 16,000 people in Chile and abroad 2
Slide 3: Ownership Structure
Ownership Structure Luksic Group Minority Shareholders (Chilean Stock Exchanges) 83% 17% Mining Industrial/ Financial Services Market Capitalization US$ 2.8(1) billion (1): Market Capitalization as of December 31, 2011. 3
Slide 4: Quiñenco: Main Operating Companies
Quiñenco: Main Operating Companies % Control as of December 2011 59.6% 66.1% 54.4% 20.6% 100% Banco de CCU Madeco CSAV Enex Chile (1):US$ 4.2 bln (1) Mkt.Cap(1):US$ 0.6 bln Mkt. Cap(1):US$ 11.8 bln Mkt.Cap V. Bursátil: MMUS$ 1,9 mil Mkt.Cap : US$ 328 mln US$ 633 mln 2nd bank in Chile N°1 Chilean b
Slide 5: First Class Board and Management
First Class Board and Management Board of Directors Guillermo Luksic Andrónico Luksic Jean-Paul Luksic Gonzalo Menéndez Hernán Büchi Buc Matko Koljatic Fernando Cañas Craig Craig Fontbona Duque Director Maroevic Berkowitz Chairman Vice Chairman Director Director Director Director Senior Management
Slide 6: Over 50 years of history
Over 50 years of history 1957-1996 1997-2004 2005-2011 1957: Sociedad Forestal Quiñenco S.A is 1997: Quiñenco’s subsidiary VTR sells 2008: Banco de Chile and Citibank Chile created. 100% of mobile phone company, Startel, to merge on January 1st. CTC. Historical transaction between Madeco and 1960’s:
Slide 7: Focused Diversification
Focused Diversification Food & Beverage Food & Beverage Food & Beverage Food & Beverage Food & Beverage Food & Beverage Hotels Hotels Hotels Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Telecom Financial Services Financial Services Telecom Telecom Financial Services Transpor
Slide 8: Quiñenco – Investment Criteria
Quiñenco – Investment Criteria Î Brand & consumer franchise development potential Î Sufficient critical mass Î Prior operating or industry experience Î Access to strategic partners/commercial alliances/ synergies Î Growth platform or add-on acquisition potential Î Controlling stakes 8
Slide 9: Quiñenco: World Class Strategic & Commercial Alliances
Quiñenco: World Class Strategic & Commercial Alliances Beverage & Food Quiñenco partners with world class players to develop its markets and products to take advantage of combined know-how, experience and financial capacity 9
Slide 10: Value Creation System
Value Creation System Quiñenco has developed a value creation system through the professional management of its investments Acquisitions Restructurings Development & maximization of profitability of business portfolio Divestments Divest Continuous growth of Shareholder value Acquisition 10
Slide 11: Corporate Level Transactions
Corporate LevelTransactions Quiñenco has carried out various transactions throughout its history, generating close to US$2 billion in profits over the last 14 years from divestments of US$4.3 bln 2000 1,846 Startel VTR LD 1500 Hipercable 994 OHCH 1000 772 * 500 Hotels -11 -12 63 40 0 Telecom Retail
Slide 12: Leading Market Positions
Leading Market Positions The company’s investment strategy allows it to maintain a leading position in all of its business areas and product segments: Business Industry Product Ranking(1) Market Share (1) Financial Loans 2 19% Servicies Deposits 1 23% Beer Chile 1 83% Beer Argentina 2 23% Carbonated
Slide 13: Diversified Investments
Diversified Investments Quiñenco is one of the most diversified holding companies in Chile. During its history it has invested in sectors where it has a recognized track-record and experience in the industry. Investments by Sector Net Asset Value(1) (NAV) (US$ 3.4 billion as of September 30, 2011) (
Slide 14: Diversified Revenues and Results
Diversified Revenues and Results Quiñenco has achieved diversified revenues and results, thus generating stable cash flows Aggregate Revenues by Sector(1) Net Income (2) (YTD September 2011) (YTD September 2011, MCh$) Financial Energy Services 74,148 18% 19% Beverage & Food 13% 7,021 2,861 544 Manuf
Slide 15: Sound Results
Sound Results Revenues(1) Net Income (2) (MUS$) (MUS$) 2,818 559 2,502 507 2,326 483 2,026 1,843 298 IFRS 1,343 IFRS 202 162 2007* 2008 2009 2010 Sept '10 Sept '11 2007* 2008 2009 2010 Sept '10 Sept '11 Quiñenco started reporting in accordance with IFRS in 2009 (comparative with 2008). Therefore,
Slide 16: Stable Dividend Cashflow
Stable Dividend Cashflow Good operating company performance allows a strong dividend flow to the parent company Dividends Composition of Dividends (Millions of US$) (YTD September 2011) 292 CSAV 6% 204 206 CCU 31% 111 91 Banco de Chile 63% 2007 2008 2009 2010 YTD Sept 11 Other CSAV Entel Telsur Made
Slide 17: Quiñenco – Strong Fundamentals
Quiñenco – Strong Fundamentals Dominant position Quiñenco’s companies are leaders in their respective markets. in its markets Proven track record in Holding has proven track record in value creation by evidenced by sale of investments for approximately US$ 4.3 bln and gains on value creation sal
Slide 18: Quiñenco Overview / Recent Events / Outlook
1 Quiñenco Overview 2 Recent Events 3 Outlook 18
Slide 19: Quiñenco acquires Shell’s assets in Chile
Quiñenco acquires Shell’s assets in Chile March 31, 2011, Quiñenco announces agreement with Royal Dutch Shell PLC (Shell) to acquire Shell’s assets in Chile, including the distribution of fuel through Shell’s service stations across the country, distribution of lubricants, and other related busine
Slide 20: Quiñenco acquires a 20% stake in CSAV
Quiñenco acquires a 20% stake in CSAV On March 22, 2011, Quiñenco acquired a 10% stake in Compañía Sud Americana de Vapores (CSAV) from Marinsa, controlling entity of CSAV, for US$120 million (Ch$285 per share). On April 6, 2011, Quiñenco acquires an additional 8% stake in CSAV, also from Marins
Slide 21: CSAV - New announcements: Capital increase and Shareholders’ agreement
CSAV - New announcements: Capital increase and Shareholders’ agreement On September 2, 2011, Quiñenco announced the approval of a US$250 credit line for CSAV, to fund company’s cash needs for the remainder of 2011. Board of CSAV approved a financial strengthening plan: US$ 1.2 billion capital
Slide 22: Quiñenco signs agreement to acquire Terpel’s assets in Chile
Quiñenco signs agreement to acquire Terpel’s assets in Chile September 2, 2011, Quiñenco announces agreement with Terpel (Organización Terpel and Petrolera Nacional) to acquire its assets in Chile, including the distribution of fuel through its service stations across the country, together with ot
Slide 23: Quiñenco Overview / Recent Events / Outlook
1 Quiñenco Overview 2 Recent Events 3 Outlook 23
Slide 24: Outlook
Outlook Factors that contribute to Quiñenco’s ability to pursue and undertake new investment opportunities Healthy Portfolio Low Level Financial Optimization of Debt Structure Good performance of main Sound financial indicators Strong cash levels operating companies should Well structured Ba
Slide 25: QUIÑENCO S.A.
QUIÑENCO S.A. Thank you for your attention 25