Quinenco S.A. · BCS:QUINENCO
Quinenco — Investor Presentation (May 2023)
47 slides from Quinenco's investor presentation, May 2023
Slide 1: Investor Presentation May 2023
Investor Presentation May 2023
Slide 2: Agenda: 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$ 122bln US$ 7.8bln 136 74,700 US$ 6.9bln AA+/AA+ Assets under Net Asset Countries(1) Jobs(1) Market Cap(
Slide 4: Diversified Portfolio of Six Main Operating Companies
QUIÑENCO : INTRODUCTION QUIÑENCO: DIVERSIFIED PORTFOLIO OF SIX MAIN OPERATING COMPANIES % Control as of December 2022 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Mkt.Cap1 Book Value5 51.3% 65.9% 29.0%2 30.0%3 60.0%4 100% US$ 880 mln US$ 10.8bln US$3.0 bln US$ 3.7 bln US$ 54.5 bln US$ 1.0 bln • Leading full
Slide 5: Quiñenco Overview
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 6: 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. Pedro Marín L. Chief Executive Officer Performance Control Manager Rodrigo Hinzpeter K.
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: 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) 7,873 7,788 7,366 Quiñenco-NAV(2) 6,858 6,541 6,565 (MUS$) 5,875 6,003 5,789 5,351 5,364 5,137 4,660 3,275 3,071 2,721 1,989 2,028 2,142 1,450 2003 200
Slide 10: Favorable Performance of NAV, Share Price & Dividends
2022 RESULTS FAVORABLE PERFORMANCE OF NAV, SHARE PRICE & DIVIDENDS Dividends Paid NAV(1)/Share Price Trend (MCh$) 56% as of December 31, 2022 1,063,492 50% 40% 30% 50% NAV: US$7.8 bln 4,500 $4,009 4,000 3,500 $2,870 123,624 3,000 54,370 72,172 63,015 2,500 2,000 2018 2019 2020 2021 2022 1,500 Percen
Slide 11: Investment Criteria
QUIÑENCO OVERVIEW Proven Track Record in INVESTMENT CRITERIA Value Creation Based on its investment criteria Brand & consumer Competitive franchise development advantages and potential sufficient critical mass Prior operating or Controlling stakes or industry experience significant influence Access
Slide 12: Leading Market Positions
QUIÑENCO OVERVIEW Dominant Market LEADING MARKET POSITIONS Positions The company’s investment strategy allows it to maintain a leading position in all its business areas and product segments Leading beverage company in Chile #2 Cable company worldwide #2 Beer in Argentina Beverage Manufacturing #2 F
Slide 13: Controlling or Influential Interest Along with World Class Alliances
QUIÑENCO OVERVIEW Controlling interest & CONTROLLING OR INFLUENTIAL INTEREST ALONG WITH World Class Partners WORLD CLASS STRATEGIC & COMMERCIAL ALLIANCES Quiñenco partners with world class players to develop its markets and products to take advantage of combined know-how, experience and financial ca
Slide 14: Diversified Investments
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing DIVERSIFIED INVESTMENTS International Presence Becoming one of the most diversified holding companies in Chile . . . Investments by Sector(1) Net Asset Value(2) (NAV) (as of December 31, 2022) (as of December 31, 2022) (Percentages calculated
Slide 15: Growing and Diversified Revenues
QUIÑENCO OVERVIEW Diversified Chile Risk with increasing GROWING AND DIVERSIFIED REVENUES International Presence . . . achieving diversified and growing revenues . . . Consolidated Revenues(1) Aggregate Revenues by Sector(2) (MUS$) (YTD December 2022) 47.8% 9,357 Financial Port Services Services 1%
Slide 16: Sound Results
QUIÑENCO OVERVIEW Sound Financial SOUND RESULTS Position . . . and sound bottom line results Net Income(1) Net Income(2) (MUS$) (MUS$) 86.7% 2021 2022 4,131 4,131 3,763 2,212 1,917 2,212 397 224 45 85 72 94 37 25 211 245 289 -83 -232 Transport Manufacturing Port Services Financial Energy Total Other
Slide 17: 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$11.2 billion as of December 2022 US$11.2 billion as of December 2022 Cash ST Debt 3%
Slide 18: Low Financial Corporate Debt
QUIÑENCO OVERVIEW Sound Financial LOW FINANCIAL CORPORATE DEBT Position . . . maintaining low levels of debt through asset disposals and strong dividend flow . . . Net Debt (MUS$) 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 2018 2019 2020 2021 2022 Net Debt Debt/Capitalizatio
Slide 19: 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$) 120 100 80 60 40 20 - 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Slide 20: Diversified and Healthy Dividend Cashflow
QUIÑENCO OVERVIEW Sound Financial DIVERSIFIED AND HEALTHY DIVIDEND CASHFLOW Position . . . to the parent company based on good operating company performance Dividends Composition of Dividends (MUS$) (YTD Dec 2022) SM SAAM Banchile Vida IRSA/CCU LQIF/Banco de Chile CSAV/HL SM SAAM LQIF/Banco de 1,113
Slide 21: 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 22: Recent Events
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: Conclusions
QUIÑENCO AT A GLANCE QUIÑENCO OVERVIEW RECENT EVENTS CONCLUSIONS
Slide 30: 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 31: Thank You for Your Attention
Ez QUINENCO S.A, a: _ THANK YOU FOR YOUR ATTENTION
Slide 32: Appendix: Main Operating Companies
APPENDIX MAIN OPERATING COMPANIES
Slide 33: 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$65 billion. • Over 12,200 employees • Nationwide network of 272 branches and 1,761 ATMs. • Traded on the NY
Slide 34: Banco de Chile Financial Results
Contribution of Financial Services to MAIN OPERATING COMPANIES Net income in 2022 boosted by higher revenues, Quiñenco’s Net Income (MUS$) largely due to higher inflation and growth in 397 224 customer income, partly offset by higher operating expenses and loan loss provisions. 2021 2022 41.7% Opera
Slide 35: 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$4.2 billion. • Over 10,500 employees. • 35 beverage fa
Slide 36: CCU Financial Results
CCU´s declined in 2022, mainly due to the negative impact Contribution of IRSA in Other to MAIN OPERATING COMPANIES on costs of external factors, namely higher costs of raw Quiñenco´s Net Income (MUS$) 68 materials, depreciation of local currencies, and inflation. 31 These effects were partly offset
Slide 37: 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 38: Invexans Financial Results
Contribution of Manufacturing to Contribution of Energy to Quiñenco’s MAIN OPERATING COMPANIES Quiñenco´s Net Income (MUS$) 85 Net Income (MUS$) 94 45 72 2021 2022 2021 2022 Invexans’ results reflect positive performance of both Operating Income (Loss) its main assets, Nexans and Enex, during the pe
Slide 39: Nexans: Sales by Key End Markets
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$) 85 especially in business segments related to electrification. 45 2021 2022 SALES* BY KEY-END MARKETS • Nexans is
Slide 40: Enex: Ownership Structure
MAIN OPERATING COMPANIES • Enex S.A. has a network of 447 service stations, with 208 convenience stores in Chile, 45 travel centers in the USA and 75 service stations in Paraguay. • Main business activities: Distribution of fuels through its service stations. Distribution of fuels to industrial
Slide 41: Enex Financial Results
Contribution of Energy to Quiñenco’s Enex’s positive evolution in 2022 reflects strong operating MAIN OPERATING COMPANIES Net Income (MUS$) results, based on growth in sales volumes, and also 72 94 inventory revaluation gains, overcoming higher expenses due to inflation and higher transport costs. 2
Slide 42: 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$10.3 billion. • In November 2015 Hapag-Lloyd ca
Slide 43: CSAV Financial Results
CSAV’s outstanding 2022 results reflect its share in Hapag- Contribution of Transport to MAIN OPERATING COMPANIES Lloyd’s performance during the period. At the corporate Quiñenco’s Net Income (MUS$) 3,763 level, CSAV reported higher administrative expenses. 1,917 2021 2022 Operating Income (Loss) (M
Slide 44: Hapag-Lloyd: Transported Volume by Trade
Hapag-Lloyd posted a substantial increase in 2022 results. Strong Contribution of Transport to MAIN OPERATING COMPANIES demand for containerized transport and sustained disruptions in Quiñenco’s Net Income (MUS$) global supply chains, although easing towards year-end as demand 3,763 weakened, led to
Slide 45: SM SAAM: Ownership Structure
MAIN OPERATING COMPANIES • SM SAAM is dedicated to port services and management of port concessions, including three main business areas: port terminals, tug boats, and logistics. • SM SAAM has a presence in 14 countries and 90 ports in America. • SM SAAM currently operates 10 port terminals and a f
Slide 46: SM SAAM Financial Results
SM SAAM’s lower results during 2022 are attributable to the Contribution of Port Services to MAIN OPERATING COMPANIES accounting effect of a deferred tax expense associated with the Quiñenco’s Net Income (MUS$) 37 transaction with Hapag-Lloyd. Excluding that effect, net income 25 would have increase
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